|Exchange Traded Debt Securities
All called issues removed
Exchange-traded debt securities are notes and bonds that are traded on the stock exchanges instead of the bond markets where most
bonds are traded. Exchange-traded debt securities have maturity dates of 30 years or more. . Most of these debt securities pay
quarterly interest distributions. Most exchange-traded debt securities rank junior to the company's secured debt and senior to the
company's preferred and common stock.
Most of the issues are $25.00 issues and generally are callable at $25.00 (plus accrued interest)- 5 years from the date of issue.
Interest is paid quarterly on most of these issues.
Caution should be used when purchasing these debt securities when the 5 year first call date is approaching. In an environment
of falling interest rates companies will be refinancing as much debt as is practical. On occasion investors get carried away and bid the
higher yielding issues up far beyond the $25 call price. If you buy an issue that is trading way above the call price and it is called at
$25/share you will have an immediate loss of capital--this happens only after the call date. For this reason we buy newer issues that
have 3-5 years before they are callable.
NOTE that the distributions on these securities is considered interest and thus is NOT eligible for the qualified tax rate
Below are issues traded mainly on the New York Stock Exchange
Earliest Call Dates with YELLOW backgrounds are now callable--if the company can refinance at favorable (lower) rates
they likely will be called. If the issue is trading above the call price use caution when purchasing as a call will translate
into a instant capital loss in this situation.
|The Yield Hunter
Let's Make some money and sleep well at night
In our 7th Year
Clicking on the security description will bring you to a page with an issue recap and the offering Prospectus
|NOTICE---cells with an 'N/A mean the the lazy folks at Google
Finance haven't updated their database with newer issues
and we have to use a Yahoo Finance workaround for the
data---thus only a part of the data preferred is available.
|How Do You Buy exchange traded debt?
Just like you would any stock--limit orders are recommended as volumes tend to be thin.
|S&P Credit Ratings
Investment Grade AAA, AA, A, BBB, BBB-
Speculative Grade BB+, BB, B, CCC, CC, C, D
Detailed Info on S & P Credit Ratings