Yesterday I bought a small position in the CHS CHSCN 7.1% reset rate preferred @ $25.30. More than I really wanted to pay given that the issue is redeemable starting in March, 2024. I am kind of trusting this won’t be called as they seem to be lackadaisical about calling issues when they could.
CHS (Cenex Harvest States) released earnings last week and as they have been they were stellar–in fact record earnings. If you missed them the detail is here.
I already own a position in the 6.75% reset rate preferred of CHS (CHSCM) which will float in about a year. I decided to go for the sister issue this time for a bit more yield.
Honestly for me this is more about safety that anything else – these are investment grade in my opinion (although they are unrated).