I will use this thread to discuss few fixed income ideas. FED is more or less done with raising rates now. While we don’t know what the future holds, there is a higher probability the rates could go down next year.
If the rates goes down then the fixed income securities could appreciate in value. Together with interest/ dividend they could provide 10% return.
I have long bought and sold successfully bank preferred’ s like WFC-PR-L and REIT preferred’ s. I am moving away from REIT preferred’s because in a takeover they are “waldonized”, meaning, the buying company can chose not to pay the dividend or create uncertainty and drive the prices down and buy them cheaply (erstwhile PSB preferred’s) etc.
In any case, for now I have recently bought WFC-L early Oct around 1075 and they are already up over 5%, the ex-date for the dividend is 11/29.
During the regional bank crisis I also bought a tiny amount of ZIONL.
Will discuss more ideas.