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

To: Paul Senior who wrote (35113)	8/14/2009 7:41:07 PM
From: Grommit	1 Recommendation Read Replies (1) \| Respond to of 78753

PGF. Maybe you could explain this to me. This yahoo site claims a 10% annual yield. I wonder what it really is? And how do you really know? Do they tell you they expected div payout for the next qtr on their website perhaps? finance.yahoo.com I looked at the holdings page finance.yahoo.com and just looked up a few of the holdings. I may not have the exact pref security, but from my experience, it doesn't matter if you buy a G, H or W, they all yield around the same. For BAC pref shares, for example, i think they are yielding 8.6% based on today's price. And BAC is 11.5% of the ETF's holdings. MetLife Pref, at 4.3% of holdings, yields 7% Wells Fargo, 4.8%, yields 7% Barclays, at 6%, yields 5.5%. So there's 25% of the portfolio, yielding around 7%. I do not know how they pay 10%. But if you buy the underlying pref stocks, you only get 7%. Is the ETF leveraged? Is the 10% yield bogus? Why not just buy your own mix of pref shares and avoid the ETF fees? regards, grommit Right now my mix of pref shares is yielding 11/5% based on today's prices. And the yield was much much higher a few months ago, when prices were 1/2. FYI -- pcx vs two reit pref stocks. for what it's worth... finance.yahoo.com

To: Paul Senior who wrote (35113)	8/14/2009 8:02:28 PM
From: Arthur Radley	Respond to of 78753

Paul, IMO your choice of this ETF is a wiser decision that merely buying directly one of these financial firms........this banking situation is far from being over.........(C) and BofA.......aren't out of the woods on their toxic debt. Merely look at the news that came out tonight.......the banking industry is in TROUBLE......Colonial isn't a small potato......they WERE a $25 billion dollar bank. Hey! I hope I'm wrong on this issue........I'm merely being the 'devil's advocate' for some that can't see the forest because the trees get in the way. That is why I live in the desert with no trees! (:>) August 14, 2009 06:23 PM Eastern Daylight Time Fitch Downgrades Colonial BancGroup's Ratings Following Receivership NEW YORK--(BUSINESS WIRE)--Subsequent to the Federal Deposit Insurance Corp's (FDIC) action today of placing the Colonial Bancgroup's (CNB) banking subsidiary, Colonial Bank (Colonial), into receivership, Fitch has downgraded the Issuer Default Ratings (IDR) to 'D' from 'C'. Following the bank's closure, the FDIC will sell the majority of Colonial's deposits to BB&T Corporation. As a result, Fitch has placed Colonial's deposit ratings on Rating Watch Evolving. Those deposits being assumed by BB&T would eventually be aligned with BB&T's current deposit rating levels. The ratings of any potential deposits not included in the transaction would be further reviewed by Fitch. It is anticipated that parent company CNB will file for bankruptcy in the very near future. BB&T is not assuming any bank level subordinated debt or holding company obligations. A $25 billion banking company headquartered in Montgomery, Alabama, CNB was a Florida concentrated institution, with the majority of the company's deposits and assets (including mortgage warehouse) located within the state. In addition to Florida and Alabama, Colonial also maintained a presence in the states of Georgia, Texas and Nevada.