Recently issued reset preferred shares. 7.25% coupon. Rated P3. Trading at about $26.50 giving it a yield of 6.81%. Likes the outlook for general insurance. The equipment to about a 9% bond yield.
7.25% Series D Bond. Rate reset bond that if the bank or insurance company does not call it back in 5 years, they will either go on for the next 5 years at either a fixed or floating rate, your option.
(Top Pick Jul 10/09, Up 3% plus yield) 7.25% Cooperators General Insurance. Rate reset that was done just after the correction. Price has moved up since last year.
(All 3 of his Top Picks are Preferred “Rate Resets” and are laddered so they come up in 2014, 2015 and 2016. Also staying with non-financials with a slightly lower credit grade.) 7.25%. Can be reset in 2014. Expectation is that the company will call them back.
(A Top Pick Aug 4/11. Up 6.2%.) 7.25% which can be reset in 2014. Expects the price of this will erode as we get closer and closer to the reset date. Still getting the nice 7.25% dividend.