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Subject:  FBF.Pr.M what to do? Date:  3/2/2011  10:57 PM
Author:  Rayvt Number:  32388 of 37003

Coupon 7.20% past call date, currently selling above par.

I bought last year at a nice discount, planning to hold until it got called. Since it is a TRU-PS it will almost certainly be called in 2012. The idea was to buy it for the YTC, 9% built-in capgain (due to the discount) plus $0.45/quarter dividend.

Now it's selling slightly over par. It hasn't been called yet, but I could effectively do a pseudo-call by selling it.
Tring to decide if I should do that, or just keep it and collect the dividends until the call.

Selling now would be in keeping with the original planned strategy. Of course, whether it's me voluntarily selling or them calling, I have to re-invest my proceeds. My heart tells me "take the money and run". My greed tells me to hold on and keep collecting that nice 7.2% dividend.

My intellect tells me that I've achieved my objective and so I should roll into another BAC preferred TRU-PS that is still at a discount and will also probably be called in 2012. I'd re-establish the discount but lose a little bit of yield but greatly increase the YTC (assuming that these TRU-PS's will all get called).

Also, the ex-dividend date is Mar 10, so should I wait until then if I decide to sell?

Any thoughts or suggestions?
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