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Strategies & Market Trends : Value Investing

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To: E_K_S who wrote (51497)

5/8/2013 10:30:03 AM

From: MCsweet

Read Replies (1) of 78775

I think high quality preferreds with 4%+ yields to call are ok. ARY has 4% YTC for 2.5 years. If price declines it is painful, but then if they don't call it you have this beautfiul 7 3/4% preferred you get to keep, and I think ARCC is a money-good company. Similar reasoning for PEB-A and PEB-B, which are 5.6% yield to call. You can try this for any company you like and don't mind owning the risk of owning their high-coupon paper.

Floating rate stuff won't get killed with rising rates, so it is another possibility, although with the demand they probably are a bit rich, too.

Nuveen MUNI ARP preferreds are a much safer place to park money if you can buy them near 10. Yields are 2-3% tax free monthly. They are callable at 10, so don't overpay. Here is a list

NAD-C

NEA-C

NVG-C

NZF-C

NAZ-C

NAZ-D

NCU-C

NVX-A

NVX-C

NZH-A

NZH-B

NZH-C