As I keep searching for good buys I keep coming back to some old standbys, but on occasion come upon something I had missed.
Below are 3 issues that would be attractive to some who are looking for some price stability, although in some cases, maybe giving up a little yield.
One that I own and keep coming back to is the Oxford Lane Capital 6.75% term preferred (OXLCM) that has a mandatory redemption on 6/30/2024–about 2 years from now. The issues has fallen off 40 cents in the last week or so and today the issue has traded down to $24.90. As it trades below $25 the yield to call moves higher making this even more attractive.
The 2nd issue that is attractive is the RiverNorth Specialty Finance 5.875% term preferred (RMPL-) which is currently trading at $25.13 and has a mandatory redemption on 10/31/2024. This issue has traded down about 50 cents in the last couple of weeks making it attractive. I have owned this one before, but not at this moment–I will nibble today.
In theory any price around $25 or lower should be a great buy as I would fully expect redemptions on schedule–of course ‘shxx happens’ so I can’t guarantee this will occur.
The 2 issues above are closed end funds and so they have to have 200% asset coverage on the preferreds . RiverNorth has coverage in the high 200% area while Oxford Lane is in the 300% area (note I have not recalculated this most recently so potential investors should do their own due diligence).
Lastly I have taken 2 nibbles on the Cowen Inc 7.75% senior notes (COWNL) this week–the issue has tumbled hard in the last week or 10 days to now be trading in the $24.87 area. This issue has a maturity date on 6/15/2033 and as such will tend to have more share price movement with a maturity date out 11 years. On the other hand as it moves below $25 the risk/reward goes toward 8% which is fairly tasty. COWN is not a high quality investment banking firm and their business has been hurt substantially in the last year as investment banking has slowed dramatically.
Once again these are just a few ideas–and not a recommendation.