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URL:  http://boards.fool.com/it-probably-is-all-right-but-im-not-sure-about-28509383.aspx

Subject:  Re: HFC-B Date:  5/13/2010  1:23 PM
Author:  brucedoe Number:  30848 of 35362

It probably is all right, but I'm not sure about the health of the banking industry even today, including HSBC. Is this one of those preferreds with a maturity date in which they can skip 20 quarters of dividends until maturity? I've stayed away from banking preferreds because of this.

The safest preferreds I know of are those of PSA (Public Storage) because PSA has done their financing through issuing of preferred stocks. They have no debt so they are not beholden to the whims of the financial industry. They have almost a whole alphabet of preferreds to choose from. We have lots of PSA-D which is the lowest cost preferred, but you aren't going to get 7.5% on it.

brucedoe
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