Need an opinion about some preferreds

[bobfl]

I usually buy individual investment grade, interest paying instruments, like preferreds and bonds.
My target income for these is a little over 6%. For a brief period at the beginning of May, most that I watch briefly went over 6% so I bought. I usually get the tax advantaged preferreds (qualified). They have since dropped back down into the 5% range.
There are three that are acting a little weird. They are still paying in the high 6% range.

If you have an opinion on any of these I would appreciate it.
First is PS Business Parks (PSB), debt rated BBB, 27.7 million sq ft of commercial space. They are selling to Blackstone (BX) and will close around July 20.
On July 8 (yesterday) their preferreds were selling for $17.97 to $19.36. Heavily discounted because of the Fed rate hikes, like the rest to the preferreds I look at. Current yields for psb-z, psb-y, psb-x are around 6.80%. (not qualified).

The others are Brighthouse (qualified) and Brookfield preferreds yielding around 6.7%
Any thoughts?

Incidentally all the facts about these including the prospectus are on quantumonline.

[bugman]

Check out nly.pf, pnc.pp floating rate. I own nly, and rate expected to be 9.2% in Sept.

[bobfl]

Thanks for the input. I have often reviewed Annaly. They have been around for over 20 years, but I can never seem to get myself to buy their stuff. Guess I got too conservative after I saw the Chicago Tribune and Chrysler declare bankruptcy. I am always looking for a reason to say no to an investment. OK, maybe that will give my wife's ungrateful relatives less money when we die because I didn't move further out in risk. :-)

[bugman]

My Systematic Income subscription rates them as a strong buy. Might add more today....Preferreds are new animals to me so experimenting a little (2% allocation) into different investments. The NLY resets in Sept.

[bobfl]

I think the world of preferred buying significantly changed in the last twenty-five years, like everything else. When I first started I started with Richard Leyman (hope I spelled his name right.) I learned not to be afraid when I bought large quantities. He had a newsletter I followed plus I paid him to invest the first year until I knew a little.
Preferreds were thinly traded, mostly individual investors buying.
But that changed with etfs and mutuals. There can be huge inflows and outflows on individual preferreds nowadays.
People just buy the ETFs and don't bother with researching individual preferreds, which definitely makes sense. Quantumonline , which is free, made research possible. But I theorize it is used more commercially now. Look up NLY on that site, then you will see all related links.

I looked at many of these preferred ETFs, CEFs, etcs for years and could never make the yield as I did when I bought individual preferreds. But I had to deal with redemptions which ETF investors don't have to deal with.

I have been heavy in CEFs, options, regular stocks, but keep coming back to preferreds.
And after working with them so long I learned some tricks, which help, like to avoid a call and how to get good capital gains plus interest.

But it is no wonder I don't get responses when I ask about individual preferreds. Just don't think people are trading them individually much anymore.

Good luck with NLY! just keep an eye on them and press releases and income reports. (Available on Quantumonline free.) Get out if you sense something is changing for the worse (like with all investments).

[bugman]

bobfl: Thanks for the tips!

[johnsmith]

bobfl,

www.siliconinvestor.com/subject.aspx?subjectid=58607

Ask over there.

[bobfl]

Jul 14, 2022 17:53:42 GMT johnsmith said:

bobfl ,

www.siliconinvestor.com/subject.aspx?subjectid=58607

Ask over there.

Thanks. I will check it. Since Blackstone closed on PS Business Parks July 20th, they own it now. I think I will keep it. Everything I bought the first of May shot up, this one stayed flat. (I know if the Fed has to go higher than what is built into the market things can bounce up and down again until the Fed stops raising rates. So not saying this 10% overall gain since May will stick. I know the fixed income rollercoast is not over.)