We Are Adding Arbor Realty Trust Baby Bonds To The Short/Medium Duration Portfolio
By: Tim McPartland,
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.