We Are Adding Arbor Realty Trust Baby Bonds To The Short/Medium Duration Portfolio

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While we are not crazy about commercial finance REIT Arbor Realty Trust (ticker:ABR), we are fairly high on their baby bonds. The only baby bond issue they have outstanding is the 7.375% issue (ticker:ABRN) and it is trading at $23.78 giving it a current yield of 7.57%. At this moment this is the best baby bond issue out there for those willing to take a little risk.  This issue matures in 5/15/2021 and has a optional redemption period that starts in 5/15/2017.

We are adding 150 shares to the 2015 Short/Medium Duration Portfolio tomorrow (Wednesday).  This will put the portfolio to about 98% invested which is where this conservative portfolio needs to be to earn a reasonable return.  This should put the current yield of the portfolio to around 6.5% which is a darned good return for this overall level of risk.



Tim McPartland

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Tim McPartland
Tim McPartland is a private investor with over 45 years of investing experience. His analysis, research and writing is devoted to the hunt for income producing securities of all types, but in particular specializing in preferred stocks, exchange traded debt and Master Limited Partnerships.
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