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3 new issues have started to trade in the last number of days.  1 issue is a non cumulative preferred issue, with the other 2 being “baby bonds”. Medallion Financial Corp. (NASDAQ:TAXI), which is a specialty finance company, sold a small issue of $25/share baby bonds.  The coupon on these bonds is a sky high 9%.  As with most income…

We are strong advocates for not “trading” income portfolios, although there have been a few times when readers have accused us of overtrading. Regardless of how often one believes it is proper to trade, we are adamant that there are times when one should “take the money and run.” Recall that back on Jan. 20, we wrote an article, “Market Carnage Presents Opportunity”,…

Bank of America  (NYSE:BAC) has sold a new preferred stock offering. Being a banking company the issue is required to be non-cumulative (if dividends are not declared they are gone forever) and as typical the shares are perpetual (having no stated maturity date).  The issue is NOT investment grade. With this issue being less than investment grade you garner between…

We have lamented the difficulty in buying new issue preferred stocks on the OTC Grey Market at any sort of decent discount to the $25/share issuance price and have been on a mission to determine why these very meager coupon issues are drawing such high demand. As we have reviewed the available data we have finally concluded there is really…

After seeing a sharp advance in income issues in February we felt that preferred stocks and exchange traded debt issues would have somewhat flat performance in March.  Little did we know that income investors had different ideas and continued to swarm into issues driving the average issue up by another 1% (on top of dividend income received). The Yield Hunter…