I typically like to have a watch list of potential ‘buy’ preferreds and baby bonds available to work from, bor dividend capture or short term capital gains–but in the crazy times we live in the redemptions have come fast and furious–and the prices of outstanding issues just keep going up.
My watch list is depleted – at least depleted of buyable issues. Many of the issues on my list were great capture plays – over and over you could buy them and take a 1-2% capital gain in a matter of just a few weeks. Unfortunately prices have run to levels, that in my opinion, have increased the risk while reducing the reward.
In the past I have tried to stay with the mid grade quality issue–i.e. Urstadt Biddle, UNH Properties, US Cellular etc., but these are becoming less viable because of valuations. So on the search goes.
I will start to buy many of the new issues as they come out and hope to capture a few steak dinners – what other choice is there?