Jump to content

Any decent debt or preferred ideas?


ugadawg_98
 Share

Recommended Posts

From feast of ideas in March, now famine. Wow. I should have held every preferred or

exchange-trade bond I bought in 1q.

 

About 2 months ago Benhacker mentioned WNA-P as a potential buy.  At the time, it traded at about $19.5, with a resulting dividend yield slightly higher than 9%.  Add to that the likelihood of a reversion to par prior to the 2022 redemption date.....and then add on a little for the devaluation of the CDN$, I could see 11-12% returns over 5-10 years.  So I did take a small bite in October, and it's worked out quite well.  Thanks Ben!

 

It's now selling at about $21.5, so that's still a dividend yield over 8%, with a little room for capital gains.....

 

 

SJ

Link to comment
Share on other sites

I am still holding RBS.pr.p since April/May last year  - Royal Bank of Scotland - $25.00 preferreds.  A small holding due to obvious risks.  On the other hand I cant see RBS or anyone else stopping payment permanently on their preferreds.  That would be a death knell when they are trying to raise money via equity and other preferred placements. 

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

×
×
  • Create New...