We have searched high and low for the perfect security (which never really exists) to add to the Enhanced High Yield Portfolio and have settled on adding the Cowen Inc. 7.35% Senior Notes due 2027 (COWNZ)
Cowen had recently (last month) sold a 7.75% baby bond issue, but it doesn’t mature until 2033. Honestly even the 2027 issue which we purchased is further out in maturity than we really care for, but on the higher yielding baby bonds it maybe is the best of the group.
The Cowen issue has an optional redemption period starting in 2020 and the way things look now there is little chance it will be redeemed then.
This portfolio had jumped up to 30% cash after we sold our Whitestone REIT 3 weeks ago and this is far too high. With the above purchase we move to about a 20% cash position.
We are still looking to add 1 singular REIT or MLP and readers have given us plenty of ideas, but we simply haven’t had time to do our due diligence.