Short/Medium Maturity Income Issues

Below we list the income issues (preferreds and baby bonds) that have maturities of 10 years or less. While the list is not long it represents a decent cross section of various sectors of businesses.

We list these because they represent securities that have a “date certain” for return of your investment (always assuming they do not fall into financial problems or bankruptcy).

These should be considered during a time of rising interest rates as they will not lose value as interest rates rise–at least not at a rate a perpetual preferred or long dated baby bond will lose value. Additionally because of a maturity date which represents when you will receive your investment back value starts to move up toward $25 if it had been trading under $25.

This is not a recommendation to purchase these issues as we never make recommendations.

Like all investments if the company files for bankruptcy or runs into ‘hard times’ term preferreds and baby bonds will fall just like common stock.