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I'm 64 days into my preferreds project, whose goal was to learn the market well enough that the discounts created by the coming crash could be responded to in a responsible manner.

Some background: Few investors understand bonds. So it's an asset class that mostly gets ignored, which is a pity, because on a risk-adjusted basis, they offer the same money as equities, or else the arbs step in to make it so. Because bonds mature, buying them responsibly is simply a matter of doing the same comparison shopping used to buy bell peppers or broccoli. It's just classic, Ben Graham-style, value investing in which the basic question is this: "Am I being offered enough reward to accept my risks?"

For any bond offered, every broker will state YTC/YTW/YTM. But for pfds, they only state CY, which is meaningless. Therefore, spreadsheets need to be built. Fortunately, though, there's only 700 or so pfds. So the back-office work is manageable.

As everyone should know, the Fed has destroyed the bond market. But pfds are such a backwater that some money can still be put to work there, and I'm having a good time.

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