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Non-Tech : Income Investing -- Ignore unavailable to you. Want to Upgrade?

To: mopgcw who wrote (10792)	7/2/2014 8:33:32 PM
From: drpiranha	2 Recommendations Recommended By MRothaus1 xj Read Replies (2) \| Respond to of 52052

Re: re GST-B I hate to be in the minority here, but I am. I understand YTC, but don't like how it's being applied. In my limited experience with Preferreds, I have not observed that they decline in a linear progression as the call date is approached. In other words, if you have a Preferred selling at $28, 36 months away from it's call date, I would not expect it's value to decline $1 each year. I would expect it to lose .30-.50 the 1st year, if anything at all, more the 2nd year, and the most in the 3rd year. I refuse to buy any Preferred that issues K-1's, so my choices are fairly limited with what's out there now. I have not seen much price degradation in the Prefereds I have held until the last 12 months. I prefer to hold on to my overpriced Preferreds and sell them 12-15 months before the call date, unless I can replace them with something that has a current yield within .5% of what I will be giving up. Milt