Thoughts on JPS

[Broozer]

Thoughts on Nuveen Preferred and Income Securities (JPS) for a small percentage (5?) of my portfolio for some diversity in my retirement income?

Currently is at a 11.92% discount.

[steelpony10]

Broozer ,

    Good morning, where I am anyway.

     Nuveen is the place to go for muni CEF’s, their primary focus. JPS has a bond and preferred slant with 40% leverage. Any leverage over 35% is considered more risky and more prone to distribution cuts especially in high rate environments like now. JPS‘s distributions seem to vary and show a long downward slope already. That discount isn’t going away any time soon. Just my quick thoughts.

     Flaherty and Crumrine is the place to go for more pure preferred holdings, their expertise. Maybe check that out and do a comparison screen.

     If your investing at a discount you should find out why it exists. A real management long or short term problem or just bad press. My opinion is JPS could have a deep discount because of declining distributions and fears the large leverage may accelerate the erosion of that distribution. So probably nothing to be gained by an increase in value any time soon and an endangered distribution. My opinion would be to go elsewhere where the odds of success may be more favorable.

[richardsok]

Apr 24, 2023 10:18:42 GMT steelpony10 said:

    Good morning, where I am anyway.

     Nuveen is the place to go for muni CEF’s, their primary focus. JPS has a bond and preferred slant with 40% leverage. Any leverage over 35% is considered more risky and more prone to distribution cuts especially in high rate environments like now. JPS‘s distributions seem to vary and show a long downward slope already. That discount isn’t going away any time soon. Just my quick thoughts.

     Flaherty and Crumrine is the place to go for more pure preferred holdings, their expertise. Maybe check that out and do a comparison screen.

     If your investing at a discount you should find out why it exists. A real management long or short term problem or just bad press. My opinion is JPS could have a deep discount because of declining distributions and fears the large leverage may accelerate the erosion of that distribution. So nothing to be gained by an increase in value any time soon and an endangered distribution. My opinion would be go elsewhere.

Good morning, pony.   Here's a good and very current article on some preferred CEFs and indiv preferreds:


seekingalpha.com/article/4594947-preferreds-opportunity-assessing-carnage?mailingid=31214803&messageid=2850&serial=31214803.2439&utm_campaign=rta-author-article&utm_medium=email&utm_source=seeking_alpha&utm_term=31214803.2439

I took some losses in FFC about a month ago and switched over to FLC.  Am also watching PFF.  I see LDP pays a lot after its recent drop but it also appears to use ROC as part of its payouts.    (JPC and several other like funds show similar chart profiles.)