| The Yield Hunter Let's make some money and sleep well at night |
| Exchange Traded Debt Securities |
| As you might expect these are Debt Obligations of Corporations that trade on the various exchanges (NYSE etc.). These securities were specifically designed for sale to the investing public as $25 issues traded on the major stock exchanges trade much more easily than traditional $1000.00 corporate bonds These debt securities are issued directly by the company Most of these investment vehicles were issued at $25 per bond (per share if that helps you visualize the debt). The bonds usually pay interest Quarterly, but some such as PMK below pay monthly. This debt trades just like a stock and almost always trades near its issue price of $25 as the interest accumulates on the price until the ex-dvidend date then it falls back and begins the accumulation once again Take a look at a multi-year chart and you will clearly see the pattern. The commission is just the same as if you were buying stock---so this makes it quite easy to buy these vehicles. Interest rates on these vehicles range from around 4% up to as high as 10% or more. As you might expect the higher the risk the higher the reward. BUT you can earn goods returns with minimized risk if you do your homework. Almost all of this debt is senior to common and preferred stock if a bankruptcy should occur--and usually equal to other UNSECURED debt--but this is not always the case SO do your homework. The debt is listed on the equity exchanges, but a good deal of it trades in small volumes, as such you should use a limit order on these as a market order could result in a high price paid To research these vehicles you must look at the news etc for the parent of the issuer. For instance in our portfolio we hold Great Atlantic and Pacific 9 3/8% exchange traded debt which is Ticker GAJ. We must research using Ticker GAP which is the common stock ticker. PLEASE note that some of these issues do not have a parent to research that is meaningful as they have gone private or are a tiny cog in a much larger corporation. Lastly, all of these issues have CALL PROVISIONS. We have listed the date on which the issues become callable. This date represents the earliest date (usually 5 years after issue) which the company can buy the debt back (even if it is past the call date it does not mean that they will be called as this depends upon many factors). If they call the issue it is at face value plus accrued interest. |
| Listed below are Exchange Traded Debt Issues These are NOT recommended purchases, but are just informational. You must do additional due diligence to find investments suitable to your needs and style. This is NOT a complete list as we have taken out many-in particular many of the airlines have outstanding exchange traded debt, which we have taken out because of bankruptcy. Information Current as of 3/20/2008 |
| Updated 3/20/2008 |
| TAXATION PLEASE NOTE THAT THE INCOME RECEIVED FROM THESE SECURITIES IS NOT ELIGIBLE FOR THE 15% TAX RATE. THE 15% RATE PROVIDED IN THE TAX ACT OF 2003 PROVIDES THE RATE FOR DIVIDENDS--NOT INTEREST--THESE PAYMENTS ARE INTEREST |
| All Call Prices are $25.00 plus accrued interest unless otherwise noted Security Names with Links have Prospectus Information |
| Security Name AAG Holdings 7 1/2% Senior Debentures AAG Holdings 7 1/4% Senior Debentures AMR Corp 7 7/8% PINES ATT 7% PINES (Called 7/6/2007) ATT 6 3/8% Senior Notes Abbey National 7 3/8% Capital Securities Allied Capital 6 7/8% Notes Ambac Financial Group 5.95 Debentures Ambac Financial Group 7% Debentures American Financial Group 7 1/8% Senior Deb Aquila 7 7/8% QUIBS Bankamerica 6% Subordinated Note Bankamerica 6 1/2% Sub Notes CBS 7 1/4% Senior Notes Comcast 7% Notes Comcast 7% Series B Notes Con Edison 7 1/2% PINES Converium Finance 8 1/4% Entergy Louisiana 7.6% First Mortgage Bonds Financial Security Assurance 6 5/8% QUIBS Ford Motor Credit 7 3/8% Ford Motor 7 1/2% Notes Forest City Enterprises 7 3/8% Senior Notes GMAC 7.35% Notes GMAC 7.3% Pines GMAC 7 38% Notes General Moters Senior Notes 7 3/8% General Motors Senior Notes 7 1/2% General Electric Capital Corp 6 5/8% Notes General Electric Step Up PINES Great Atlantic and Pacific 9 3/8% Senior Bonds HSBC Finance Corporation 6 7/8% Notes Hilton Hotels 8% QUIBS ING Groep NV 7.2% Perpetual Debt ING Groep NV 7.05 Perpetual Debt Janus Capital 7 7/8% PINES (Called) Lincoln National 6 3/4% National Rural Utilities 5.95% Notes National Rural Utilities 6.1% Notes National Rural Utilities 6.75% Notes Nexen Inc 7.35% Sub Notes Northern States Powers 8% PiINES PMA Capital 8 1/2% Monthly Income Notes Phoenix Co 7.45% QUIBS Primus Guaranty 7% Senior Notes Provident Financial 8 3/8% (Called 7/15/2007) Pulte Homes 7 3/8% Senior Notes Realty Income Corp 8 1/4% Monthly Income Rochester Gas and Electric 6.65% Bonds Savannah Elec Power 5.75% Senior Bond Selective Insurance Group Junior Notes US Cellular Senior 8 3/4% Notes Xcel Energy Junior Subordianted Notes 7.6% |
| Ticker Symbol GFW GFZ AAR SBT ATT ANB-PC AFC AKF AFK AFE ILD IKR IKJ RBV CCT CMCSL EDV CHF EHL FSB FCZ F-PA FCY GJM GMA GOM BGM GMS GEA GEP GAJ HTB HLN INZ IND SVO LNC-PF NRU NRC NRN NXY-PB XCH PMK PFX PRD PFV PHA OUI RGE SVJ SGZ UZG XCJ |
| Parent Ticker GFR GFR AMR T T None ALD ABK ABK AFG ILA BAC BAC CBS CMCSA CMCSA ED CHR ETR None F F FCE-A N/A N/A N/A GM GM GE GE GAP HBC HLT ING ING JNS LNC N/A N/A N/A NXY XEL PMACA PNX PRS NCC PHM O N/A N/A SIGI USM XEL |
| Earliest Call Date 11/08 01/09 07/04 Called 02/12 09/07 03/12 02/08 Called 02/09 02/07 08/09 10/07 06/06 05/11 09/11 Called 12/07 04/07 12/06 02/07 06/08 02/09 08/07 03/06 12/09 05/08 06/09 06/07 01/10 08/04 01/08 08/06 12/07 09/07 Called 04/11 02/10 02/09 02/08 11/08 07/07 06/08 01/07 12/11 Called 06/11 11/08 06/07 12/09 09/11 11/07 01/2013 |
| Payment Series (see below) 3 1 1 Called 2 3 1 3 Called 2 Called 1 3 3 2 3 Called Called 1 3 1 3 2 2 3 3 2 1 3 1 1 1 Called 3 3 Called 1 2 2 2 2 Called Each Month 1 3 Called 3 Each Month Called 3 3 2 1 |
| Interest Payment Date Series are as follows 1--Jan, April, July, October 2--February, May, August, November 3--March, June, September, December |
| Canadian IncomeTrusts Canadian Oil and Gas Trusts U.S Oil and Gas Trusts Shipping Stocks Master Limited Partnerships |