I used the big sell off in March to buy a number of utility preferred issues
and baby bonds. Since then all of them have appreciated greatly. I have
now taken profits and sold every one of them for cap gains equivalent to
2-3 years worth of dividends/interest. In my opinion they are all fully
valued so no need to hold.
For example, bought NEE-N at $21.95 and recently sold at $27.00.
Actually....I still have SOJA, currently priced at $25.66. SOJA is callable
in October, so likely won't trade much higher than it is now. Will pay
two more interest payments until the call date. I fully expect SO to
redeem the 6.25% issue in October.
My intention is to reload all of those same securities on the next
As far as bank preferreds go, we have only JPM and BAC issues
at the moment and I believe those banks to be "too big to fail."
Just remembered, still have the floater ALLY-A (formerly GMAC
Trust issue). That one floats at 5.785% plus 3-month LIBOR currently
just 0.37%! ALLY-A continues to reset the dividend lower as
LIBOR has contracted steadily. Next dividend just .40 in August.