The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Investing for Income

URL:  http://boards.fool.com/quanumonline-lists-many-trust-preferred-issues-29741010.aspx

Subject:  Re: opinions on preferred stocks for income? Date:  12/22/2011  3:51 PM
Author:  pauleckler Number:  916 of 922

QuanumOnLine lists many trust preferred issues. But be very careful about call provisions. With interest rates so low, most issues are priced well above their call price. Hence, you can take quite a loss if the issue is called. Low interest rates make it easy for issuers to refinance at lower cost and call the issue.

As for closed end funds, I like NQS and BLE (tickers). Both are leveraged but have done well in spite of dire predictions when the yield curve flattens out. They increase their yield by borrowing at short term rates (currently very low rates) and investing a