For those that are participating in the UHaul Investors Club coupons are moving higher.
Amerco (NYSE:UHAL), who is the parent of UHaul, has filed a new prospectus that includes issues with coupons that are around 20 basis points higher than those currently offered. It is likely to be a month or so before the new notes become available.
For those not familiar with the UHaul Investors Club it simply is a secured note sold by Amerco. The notes are sold right off of the company website linked above and investors can have IRA or cash accounts. At this time coupons range from 3% to 7.75% with maturities from 2 to 30 years. Investors receive payments quarterly from the company for their notes and the payment includes interest and principal–unlike a typical bond with interest only payments and the balance at maturity.
Disclosure–we currently have $6,000 in our UHaul IRA’s as we became aware of this vehicle from kaptain lou earlier this year so we began to fund our IRA for 2018 in UHaul. So far we have been very pleased with our investment and are happy to see them increase coupons.
Minimum note purchases are $100 so as payments are received one can turn right around and reinvest if so desired.
Like all investments potential investors should do due diligence on Amerco prior to purchasing these notes.
Of course we do not recommend purchases to anyone, but we find it a convenient form or diversifying our holdings.