Fixed Income help needed

Question

Do any of you guys know where I can get relatively stable high yields. I've been looking at closed ends and convertible preferred's but I don't know which are best. I'm looking for after tax yields above 7% can handle some principle fluctuation.

Thanks

PALLADIUM · Answer

Do any of you guys know where I can get relatively stable high yields. I've been looking at closed ends and convertible preferred's but I don't know which are best. I'm looking for after tax yields above 7% can handle some principle fluctuation.

Thanks

pederson16 · Answer

he brokerage houses that have investment banks i.e. morgan, merrill, jpm, wachovia, oppenheimer and so on can offer preferreds

i work at morgan stanley but we all offer the same things. we just had a 9.00% Bank of Greece AA rated preferred that came out and sold out really quickly.. it pays quarterly income and is QDI, which means qualified dividend (taxed at 15% not income tax bracket) after taxes yield is about 7.5% +, not too shabby

let me know if you want any other ideas or info, i posted my blog as well in the forum so you can get a hold of me on there by making a comment or emailing me,it's in my profile

Good luck

pederson16 · Answer

also, the yield doesn&#x27;t fluctuate, they are offered at $25. the price may fluctuate b/w 23-27 but will stay relatively flat.  Obviously you get the principal back at maturity, however, most will be called after 5 years b/c the banks will then be able to get loans at lower rates.

PALLADIUM · Answer

Pederson,Why do you think preferred&#x27;s won&#x27;t fluctuate in a rising interest rate environment?  Also why do you feel they will be called in a rising rate environment.  I&#x27;m not putting down your ideas; I&#x27;m just curious as I&#x27;ve seen this play out in the past and rarely seen them get called.  Your at Morgan so you can be my broker?

KOAJ · Answer

relatively stable high yields----------didnt know such a thing existed...seriously

Fixed Income help needed

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