Term Preferreds and Exchange Traded Debt Maturing in 12 years or Less
By: Tim McPartland,
November 21, 2013 10 pm
In the ‘old’ version of our website we had 2 spreadsheets with debt and term preferreds issues that are 13 or less (some just a couple years) from maturity. Of course the idea is that debt and preferreds that are relatively near maturity do not move nearly as violently as those that either have very distant maturity dates or are perpetual. Additionally they have the distinct advantage of maturing soon (meaning they have to be paid off).
This seems (and is) a good way to get a decent return without all of the ups and downs that we are seeing in the preferreds and debt issues we follow.
With this in mind we have republished the 2 spreadsheets.
It is noted that all of the Term Preferreds issues are monthly dividend payors, which we always like (a bird in the hand is better than waiting for your money).
Like all preferred and exchange traded debt one should buy the one that gives you the best yield–relative to your risk tolerance, and preferably under par value.