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i've been buying those for clients. only the QDI paying - equity preferreds that are fixed for a few years and then either get called or start floating with the 3 mo LIBOR and a nice spread. the equity preferreds dont produce K1.
@Ted for a little “higher on the risk spectrum” floating rate preferred (actually a note...it’s debt, not a preferred stock, so no K-1 issues to deal with) to add to something like ALLY-A, maybe look at NSS (NuStar Logistics 7.625% fixed-to-floating subordinated note). It’s yielding approx 9%. Holding about 2% position and not looking to add, but would if it was smaller or I didn’t own it.
I only mentioned the K-1 because it was issued by an MLP....and preferreds issued by publicly-traded partnerships that issue K-1s, issue K-1s. Non-partnerships do not. And since NSS is a debt instrument, it doesn't issue a K-1 so it should be safe to hold in any account (but it is NOT QDI so probably better to hold in an IRA or other tax qualified account.
i've been buying those for clients. only the QDI paying - equity preferreds that are fixed for a few years and then either get called or start floating with the 3 mo LIBOR and a nice spread. the equity preferreds dont produce K1.
@Ted for a little “higher on the risk spectrum” floating rate preferred (actually a note...it’s debt, not a preferred stock, so no K-1 issues to deal with) to add to something like ALLY-A, maybe look at NSS (NuStar Logistics 7.625% fixed-to-floating subordinated note). It’s yielding approx 9%. Holding about 2% position and not looking to add, but would if it was smaller or I didn’t own it.
Comments
I only mentioned the K-1 because it was issued by an MLP....and preferreds issued by publicly-traded partnerships that issue K-1s, issue K-1s. Non-partnerships do not. And since NSS is a debt instrument, it doesn't issue a K-1 so it should be safe to hold in any account (but it is NOT QDI so probably better to hold in an IRA or other tax qualified account.