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No. of Recommendations: 2

"good example is ty preferred

credit risk: ZERO (fund is 1.56b assets; this issue is 30m and it pays 1.5m at par; there are also restrictions on the fund itself that essentially render this fund risk-free barring the end of all things
only thing you expect to get, period, is the coupon

at what yield you would would TY preferred have to be for you to want to invest in it?

For me personally, I would buy w/ a current yield (in today's rate environment, with TY's call provision) at a yield ~3% above a 30 year.

you are trading:
1) liquidity
2) disaster upside of US T's
3) minimal rate drop upside of US T's

for 3%... I would do that.

So $40 for TY.p
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