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Templeton Emerging Markets Inco Message Board

  • j_d_foxy j_d_foxy Jun 17, 2003 11:31 PM Flag

    looking for some suggestions

    from board. Am looking to buy into four preferred REITS for about 10,000 each. I like MLS_pc but would like to hear other suggestions from Board . Thanks in advance

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    • > from board. Am looking to buy into four preferred REITS for about 10,000 each. I like MLS_pc but would like to hear other suggestions from Board . Thanks in advance <

      I think buying preferrds is probably not the best choice here.

      *) Your dividends will never grow. (Unless they have been suspended, and buying a suspended divvy preferred is risky).

      *) The yields on low risk issues are low.

      *) If the market takes off, these guys could run right back to where they were trading a couple of years ago, as players drop 'em and start chaising cap. gains again.

      I think, on a risk-adjusted basis with a 2 or 3 year time horizon, they will be 'dead money' (will loose more in price than they pay in divvys), but might be a play for a few months.

    • j_d_foxy,

      Why don't you look at FFC and HPI - two closed end funds that invest in preferreds. Both pay monthly, pay a similar yield, provide diversification, and give you liquidity.

      Bob N.

      • 2 Replies to RMNuckols
      • How do you feel about JPS versus FFC and HPI?

        TIA

      • Bob N says<<<<Why don't you look at FFC and HPI - two closed end funds that invest in preferreds. Both pay monthly, pay a similar yield, provide diversification, and give you liquidity.>>>>

        What I like about FFC is that it is fully hedged. They own 30 yr T-Bond puts that would kick-in after a 50 bais pt move in the long rate. So, it would act to protect NAV against a rapid return to higher long rates. Atleast, that's what the IR said. Need to call IR again to get more details on the hedge. Both PFD and PFO are managed by same Co., Flaherty & Crumrine and they have both had some good long rate swings.

        I own both FFC and HPI.

 
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