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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Dale Baker who wrote (33508)	2/12/2009 11:34:02 AM
From: Paul Senior	Read Replies (1) \| Respond to of 78732

Allianze too tough for me to easily understand. Not that I'm sure I understand DLR well enough either. Huge size and diversity of Allianz makes it a survivor, I guess, and maybe why it gets A rating. I have to agree AZM does look like the better bet compared to DLR pfd for assured income. If DFT is as good as people on SI believe, then DLR ought to be a survivor too.

To: Dale Baker who wrote (33508)	3/26/2009 3:44:43 PM
From: Paul Senior	Read Replies (3) \| Respond to of 78732

Decided AZM at price is a buy. I am in. Nice yield (13.3%) given its Moody's/S&P rating of A3/A+. Diverse company with interests in banking/insurance/money management: allianz.com I would've assumed that they're predominantly German and that they'd be much affected by the German export economy, which is suffering. Doesn't seem to be a serious/critical management concern though from the latest press release or presentation that I see: allianz.com I'm not too thrilled about how junior this bond is, and what could happen to the interest payments if things go wrong: "SECURITY DESCRIPTION: Allianz SE, 8.375% Undated Subordinated Callable Bonds, issued in $25 denominations, redeemable at the issuer's option on or after 6/15/2013 at $25 per share plus accrued and unpaid interest, and and with no fixed maturity date. Interest distributions of 8.375% ($2.09375) per annum are paid quarterly in cash, or possibly in stock under limited circumstances, on 3/15, 6/15, 9/15 & 12/15... The company has the right, at any time, to defer dividend payments for up to 40 consecutive quarters without giving rise to an event of default (but not beyond the maturity date) and up to 20 consecutive quarters before the alternative payment mechanism takes effect...The Bonds are unsecured, junior subordinated obligations of the company and will rank junior to all existing and future unsecured and unsubordinated indebtedness of the company." quantumonline.com./search.cfm (edit: Pasted link for above quote doesn't seem to be be working here.) Also, fwiw, this issue, for the number of shares traded daily, really seems to be very volatile: finance.yahoo.com Still, given the preferreds I've been buying AZM at current price looks better (safer and cheaper) than some; so I'm a buyer and an adder to position if AZM will drop on no adverse news.