Countrywide Capital V (New) 7.0 Message Board
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People Need to Read Preferred Prospectus More Carefully
some preferreds are really dangerous for investors who need to start reading what the weasel lawyers write more carefully. When a company goes bankrupt, preferreds are usual 'toast' anyway. I am moving into debt investments increasingly and out of the phony preferreds.
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good rebuke to '----smellsrotten'.....lol
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Dear tradesmellrotten,
Gee, that was so helpful! Telling me how you've told me so... Why didn't I take your advice before?
But wait! Anyone looking back over all 193 posts on this board can see you have never said any such thing! In fact, this was your first post on this board.
Buzz off troll.
- Joel -
Just curious, what are the yields on straight BAC debt (and not the new FDIC insured bonds they've been doing)?
Might be a better idea to take whatever you have in the pfds and sell them and then use 20% to buy some common, and 80% to buy senior debt. Risk/Reward might be a lot better.
When I get to work tomorrow I'm going to run some numbers.- 2 Replies to yanivpete
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yanivpete,
For senior unsecured debt, I see issues show a YTM anywhere from less than 6% to 13.7%. The YTM varies a lot and doesn't seem to show any sane transition between near-term and long-term maturities.
I pulled those numbers from TD Ameritrade's online bond desk; but I also like to see what Fidelity is showing as well. Fidelity seems to be listing some BAC debt in excess of 14% YTM.
Right now, CFC-PB is showing a simple effective yield of > 22%.
- Joel -
IKL 1.469 @ $12.07 fri.= 12.07% @ $25 par =5.87%
IKR 1.500 @ $12.41 fri.= 12.08% @ $25 par =6.00%
IKJ 1.625 @ $12.76 fri.= 12.70% @ $25 par =6.50%
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