Replies to post #33 on Solar Capital Ltd (SLRC)

[mthiker2004]

I would add that SLRA is not a preferred, but a note which pays interest, thus not subject to the (current, as of 12/31/12) preferential treatment of qualified dividends. If one is merely looking for better interest than a bank, etc., this is one of many notes available to investors. However, with many true preferreds paying similar interest rates, and eligible for preferential treatment as a qualified dividend at lower tax rates (for most taxpayers), all else being equal, the after tax yield is actually greater on the preferred stock than the note.