FYI: (Click On Article Title At Top Of Google Search)
There are still plenty of places to find decent income in stock and bond markets, even with many key interest rates at or near historically low levels. Investors can get yields of 4% to 9% on a range of investments, including junk bonds, utility stocks, telecom shares, and real estate investment trusts. These look appealing in an environment of sub-2% inflation, 1%-to-3% Treasury yields, and minuscule yields on bank deposits and money-market funds.
Regards,
Ted
https://www.google.com/#q=get+yield+up+to+9%+Barron's
Comments
Nuveen Quality Preferred Income 2 (JPS) has most its exposure to preferred stock issued by large banks and insurance companies, such as Bank of America and MetLife. Most preferred is perpetual, giving it a lot of rate risk, but credit quality is improving as banks and insurers build capital cushions.[my emphasis]
Why is so much MSM finance reportage persisting with this mantra? I don't get it; last time I looked, the rating agencies were giving yet another credit downgrade to many of the 10 largest banking institutions. Excluding Wells Fargo, aren't many now about one step from BBB? That's terrible! And most MFs that focus on preferreds have a boat-load of Big Bank preferreds. Perpetual pfds. No thank you. Put leverage into the mix? No thank you very much.
@Ted I know it increases concentration risk, and there may be some call risk in certain issues, but I just think it's be better to follow your route--- be patient, identify pfd targets, and when they hit a sensible buy price then go for it and build your own "Benz bucket," one by one, in a measured way. In this asset class, how else can one stay away from the banksters, and the illusion of their stability?