Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (119843)	11/2/2009 1:18:04 PM
From: Knighty Tin	Respond to of 132070

To All, Nuveen Dividend Advantage Muni (NVG) has introduced a new preferred stock option to replace the old auction rate preferreds. These will be preferred stocks with a 5 year lifetime. The interest for the first one was set at 3%, tax free. Though I think interest rates, in general, are way too low, 3% tax free for a well protected 5 years ain't too shabby. If these spread to their other funds, you could eventually build a ladder of these, to make a 2 1/2 year 3% portfolio. This stock's SI symbol will be NVG-C when it is introduced on the NYSE soon. Whether the concept will catch on and, whether or not rates stay so high on the new type of preferred remain open questions. But it could be interesting.