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To: MCsweet who wrote (163)3/28/2012 4:30:16 PM
From: inspbudget of 187
 


I bought KYN-E as a replacement for a bank CD that matured. I am simply using this to replace the rung in the ladder, and with it's stellar rating, it is a reasonable substitute for a CD. Anyway, I can never get a CD with that interest rate even if I went way out on the maturity curve.

If KYN-E does go below par, I suspect I would likely grab more.

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To: Kapusta Kid who wrote (157)3/30/2012 3:41:38 PM
From: Kapusta Kid of 187
 
After a nice runup over the last several months, HBA-pG is getting hit today (-4%) on heavier than normal volume. Another floating rate preferred, HBA-pF is down @2%. My other floaters are mixed (up/down @ 3-5 cents), including other shares from European based issuers.

The HSBC common (HBC), however, is up almost 1%. Go figure.

If I had to guess, I would say that some institution wants out at quarter end and is cutting or closing a position.

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From: inspbudget4/5/2012 4:14:05 PM
of 187
 
HCN Preferreds?

Anyone here holding HCN Preferreds, like HCN-J & HCN-I.

What si your opinion of them? Good for long term holding, or are there any clouds/storms on the horizon for these guys because of the Obamacare situation?

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To: inspbudget who wrote (166)4/6/2012 12:56:04 AM
From: shadetreethinker of 187
 
Owned HCN-F since 07 and HCP-E since 08. Both have been called. The replacement issues should place both companies in better shape. As far as Obamacare and the government is concerned, they will move in the direction that the surveys suggest. JMHO

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To: shadetreethinker who wrote (167)4/17/2012 1:15:27 PM
From: inspbudget of 187
 
Bought HCP-J


Call protection until 2017, but yield is a little low. Still, the call protection helps, and if we see rates trending up in 2014-2015, I will sell it.

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From: inspbudget4/23/2012 11:22:06 PM
of 187
 
HCP-F


Received my redemption proceeds from HCP-F this morning. I received about 18 cents per share in accrued dividends, plus the $25 share proceeds.

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From: MCsweet4/24/2012 2:26:18 PM
of 187
 
MFO,

MFO is my best bond/preferred idea right now. Senior note of MFA. Coupon of 8%, better call and credit protections than MFA-A, which only yields a bit more. Also, MFO seems relatively attractive to some of the BDC and MREIT preferreds that have come out recently.

There are 100k shares offered @ 24.85, overhang from the recent issue at 25.00. It may take awhile to clear it out, but I think it will eventually clear up, after which this could easily trade back to par.

If the offer doesn't clear up, and MFO stays in the dumps for awhile, I am happy clipping an 8.0% coupon on what I think is a money good senior note. I'd also be fine buying some more lower.

This was brought to my attention on the new income investing board, which I think is quite good. I will contine to post here, because there is much less traffic (so easier to keep track of ideas), and I'd like to keep the board alive.

MC

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To: MCsweet who wrote (170)4/25/2012 9:45:57 AM
From: MCsweet of 187
 
MFO follow up,

Hear me now and listen to me later. Someone took out the 24.85 in a monster print at the open. deeno was that you :)

I thought the deal wouldn't last long, but this is much quicker than I expected.

MC

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To: MCsweet who wrote (170)4/27/2012 9:30:08 AM
From: Jurgis Bekepuris of 187
 
MFO - do you think it's much safer than MFA common (yielding 13%??)? It seems that if MFA gets in trouble (by buying junk MBS?), being senior to common won't help much, since all their assets are investments in MBS... Although I admit that there might be situations where only portion of the assets is impaired and MFO gets a cut while MFA tanks/etc. I am not a great mREIT expert. ;)

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To: Jurgis Bekepuris who wrote (172)4/27/2012 10:28:39 AM
From: MCsweet of 187
 
MFO is safer than MFA as long as MFA doesn't go bankrupt. In the past crisis, companies like MFA and ANH got hit hard, but stayed solvent. With MFO, you will get your money back as long as MFA stays solvent, whereas MFA common holders could face impaired book values and dividend cuts at some point. In a bankruptcy, MFO is probably more like a regular preferred in that with all the leverage and everything you may not get anything back in bankruptcy.

MFO is not as safe as something like ARY or a regular company bond in my opinion due to the higher leverage and lack of bankruptcy protection. I still believe MFO will be money good, but with my MFO investment I will be monitoring MFA and the state of the economy.

I think MFA is reasonable as a buy -- it will have more volatility and higher return potential.

MC

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