I'm still not sure why anyone would take interest rate risk with PFDs at 5-7% unless they had liabilities they had to match.Probably the need for reliable income....which may be what you mean by 'liabilities to match'.Writing puts carries the added risk of asset loss if the stock's price suddently drops. An investor (generally, retiree) requiring income does not pay attention to security price fluctuation....only to the securities ability to sustain its distribution. This is uniquely true with preferreds, where a decline in shareprice (do to ascending interest rates) usually means a more secure dividend.But with today's pitiful yields and artificially low market interest rates, if I'm investing for total return, preferreds is not where I'd be.BruceM
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