Today I bought a 1/2 position in the Highland Income Fund 5.375% perpetual preferred (HFRO-A) for $23.67 – current yield 5.70%.
This issue is A1 rated by Moodys and since it is a closed end fund it is required to maintain a 200% asset coverage ratio–the ratio was around 360% on 12/1/2019—no doubt much less now, but it is the best CEF preferred available now that is investment grade.
Additionally, I went ahead and bought a little more of the AMG 5.15% Convertible Trust Preferred (AATRL) for $38.75 (6.5% current yield)–I just can’t help it–I am really overweight on this one with initial buys almost $10/share lower. It is now at $40.09 (but thinly traded and may fall off any moment).
Also I sold a little more of the Spire 5.90% perpetual (SR-A)–I thought I had sold it all yesterday on a pop, but found more in another account.
These add another 1% to the portfolio – now I wait and watch some more.