Below are a few great buys that are out there right now.
When I say great buys, to me, that means at or very close to investment grade. No doubt I have mentioned some of these before–maybe they are better buys now? Of course they could be better next month–but one never knows.
Kemper Corporation (KMPB) 5.875% subordinated debentures. This baby bond is 1 notch below investment grade per S&P and Moody’s. The issue has dropped about $2/share in the last 10-15 days to trade at $23.51 with a current yield of 6.30%. This one does have the “may defer interest payments one or more times for up to 5 years’ clause in it–which while likely will never happen, is a slight negative.
American Financial Group (AFGD) 5.625% subordinated debentures. Again this baby bond is off $2/share in the last 10-15 days to now trade at $23.39 with a current yield of 6.01% (corrected). This issue is double investment grade. These shares also contain a clause to defer interest.
Athene Holdings-now owned by Apollo (APO) has a gaggle of investment grade preferreds outstanding which can be seen here. All issues have current yields of 6.2% to 6.5%.
Capital One Financial (COF) has numerous preferreds outstanding with current yields in the 6.2% to 6.3% area–they are here. These issues have fallen up to $3/share in the last couple of weeks as interest rates popped higher. The issues are split investment grade.
Obviously these are just a few issues that have fallen relatively sharply in the last few weeks to the point of being fairly attractive for income investors. There are many, many more but some at a slightly lower credit rating (i.e. BB).