A possible fixed income value play . . .
Taubman Centers, Inc. Preferred (TCO-PK) - This yields 6.25% at $25 PAR and callable after 3/18/2018.
Decided to park some funds into TCOpK which at @ $21.60/share represents a 7.23% yield and the potential for a 20$ capital gain if called at $25 PAR. I put a 1% portfolio position into this name as it looks like it has a good risk/reward w/ yield and potential capital gains.
As of August 23, 2007, it owned and/or managed 23 urban and suburban shopping centers in 11 states the United States. These centers are located in metropolitan areas, including New York City, Los Angeles, San Francisco, Denver, Detroit, Phoenix, Miami, Dallas, Tampa, Orlando, and Washington, D.C. . The value proposition for me is as the U.S. economy continues it's slow sustained growth from QE and low interest rates, these malls should benefit from growing consumer sales.
As a conservative low risk play, it's better than holding the cash in the brokerage account and buying the preferred at a discount to PAR does allow for future capital gains too.
EKS |
