Mohacsy's Safe Portfolio Member Forum

[santafe2]

As I've noted before this is a 2-4ish year trade for me. Half of the value in this trade is that all of my preferreds are discounted an average of ~20%. When rates fall again they'll move back up to par. When the Fed made it clear they were likely to bump another 50bp this year. My preferred holdings dropped 3% in a day. I bought more and I'll continue to buy more if rates continue up.

Trades should always be driven by a thesis. This one is simple - interest rates in the US will come back down. I'm not concerned about these stocks being called because they can only call at par. They can call all of them tomorrow and I'll take my 20% profit and move on.