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.

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

To: Frank Sully who wrote (43430)	6/30/2020 8:58:55 AM
From: FL_Guy	1 Recommendation Recommended By indigostretch Respond to of 52048

Re: KTBA Trust - A Bond Investment Yielding 6.1% Backed By AT&T I don't own KTBA and have a very small position of T. But have a friend who owns T (he got me to take a small position in T) and asked him why not KTBA. His response, He likes that instability. His view is T has some upside in stock price going forward as they work through their debt load. So he sees appreciation in the stock price -- yeah, we know where the stocks been, but he says he's looking at where he thinks it can go He also uses that current instability in the market price to buy on the dips and then is able to squeeze more juice (yield %) or capture capital gains. At current price KTBA is paying about 6.15% and T is paying 6.95%, so he's rewarded and thinks the T div is secure and could actually increase. He also does some covered calls on his T, giving him a little more juice from his T holdings. Can't do that with KTBA. He buys well out of the money calls, if they do get called, he has a nice gain to pocket. He also sees T as more liquid, so should he want or need to sell he doesn't worry about the buy/ask spread. Anyway, that's his take. He's done pretty well for himself so can't say I disagree with his thoughts.