SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Preferred Stock Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Jurgis Bekepuris who wrote (172)4/27/2012 10:28:39 AM
From: MCsweetRead Replies (1) of 189
 
MFO is safer than MFA as long as MFA doesn't go bankrupt. In the past crisis, companies like MFA and ANH got hit hard, but stayed solvent. With MFO, you will get your money back as long as MFA stays solvent, whereas MFA common holders could face impaired book values and dividend cuts at some point. In a bankruptcy, MFO is probably more like a regular preferred in that with all the leverage and everything you may not get anything back in bankruptcy.

MFO is not as safe as something like ARY or a regular company bond in my opinion due to the higher leverage and lack of bankruptcy protection. I still believe MFO will be money good, but with my MFO investment I will be monitoring MFA and the state of the economy.

I think MFA is reasonable as a buy -- it will have more volatility and higher return potential.

MC
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News