I am adding the 2 perpetual preferred stocks from Enstar Group (ESGR) to my watchlist.
While non cumulative (I would prefer cumulative) both issues are now trading in the $23.80 giving them current yields just over 7% which is respectable for BB+ rated issues (1 notch under investment grade).
Enstar has had a rough year as insurance companies invest in both fixed income securities as well as common stocks and obviously these have both been losers. On the other hand the company has very modest debt (debt to equity of around 25%) and with a strong balance sheet they will do just fine over time.
It is likely I will ‘nibble’ a little this week, but will wait longer before making any significant purchases.