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John Huss

John Huss
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  • Prospect Capital: More Restructuring Of Senior Portfolio Debt - Meet First Tower [View article]
    I wonder how safe their BBB bonds are?
    Aug 26, 2014. 02:45 PM | Likes Like |Link to Comment
  • Should You Buy American Realty Capital Properties Instead Of Realty Income? [View article]
    Worthwhile comparison of companies often considered at oposite ends of the REIT risk/reward spectrum, showing they are not so different as one might assume.
    Aug 20, 2014. 01:01 AM | 8 Likes Like |Link to Comment
  • Preferred Stocks Are Not For Everyone [View article]
    I find VRP to be singularly unattractive: a 1.31% yield coupled with a market cap of only 60.48 million and low trading volume. What's to like with so many other variable rate based securities, such a bank loan funds, to choose from?
    Individual Fixed to Floating PFDs and CEFs loaded with them (like those sponsored by Flaherty & Cumrine) should trade relatively well as interest rates increase, so there is a certain degree of principal protection involved, but the gap between current short term rates and the rates at which a variable rate security will reprice are often pretty substantial, so a kick up in income as short term rates rise may not be as great as one might assume. Whre the variable rates are very short term, resetting frequently, results may be better, but to patiently wait for the future being paid 1.31% for my trouble is not for me.
    Aug 19, 2014. 03:14 PM | 1 Like Like |Link to Comment
  • Gramercy Property Trust: A 7.125% Yield For Income Investors [View article]
    Note that GPT-A had its dividends suspended from 2008 until 2013, but were caught up recently, thereby being a real world demonstration of the value of the cumulative feature when found in a PFD
    Aug 19, 2014. 02:52 PM | 1 Like Like |Link to Comment
  • Apartment Investment And Management Co. Preferred Stock, Opportunities And Risks [View article]
    There are so few PFDs even rated in the B+ category, I wonder how many unrated PFDs could be rated above CCC if they thought it worth the expense to get a rating? I would imagine AIMV only bothered to get its PFDs rated because it considers the rating of its debt extremely important in affecting its funding costs.

    I agree the PFDs of AIMV seem pricey.

    Thanks for the informative article!
    Aug 18, 2014. 08:10 AM | Likes Like |Link to Comment
  • Evaluating Preferred Stock Funds For Your Retirement Portfolio [View article]
    It would be interesting to ask Flaherty & Cumrine why they avoid REIT Pfds. They appear to place a very high value on an investment grade rating in their CEF portfolios. Why would liquidity be a major issue for a CEF? CEFs can afford to take advantage of illiquid fixed income investments which have a corresponding higher yield because they are not subject to redemptions like Open
    End funds.
    Aug 14, 2014. 09:28 AM | Likes Like |Link to Comment
  • Preferred Stocks Are Not For Everyone [View article]
    For that strategy--buy for the short term and get out--consider PFT ETFs for their liquidity and low cost if you have the right discount broker. But when do you know when to bail out?

    I would never buy a 6% or less PFD--way too much exposure to a perpetual ownership trap. I do buy select non-rated REIT PFDs where 7% or so is still available.

    Now is a time to be patient. Rates move up and down and there were bargains 6 or 8 months ago. Maybe there will be bargains in the next year for investment grade PFDs--maybe not.
    Aug 14, 2014. 09:15 AM | Likes Like |Link to Comment
  • Is Annaly A Sleep Well At Night Investment? [View article]
    What do you think of NLY Pfd's? As long as the payments continue to be reasonably secure, I can be happy with the yield. At my age growing the dividend is not a major priority but stability in dividend and interest income is.
    Jun 30, 2014. 04:13 PM | 4 Likes Like |Link to Comment
  • Good Management, 6.26% Dividend, And Good Fundamentals Make Colony Financial Attractive [View article]
    A somewhat less risky way to invest in Colony is through its new Series B PFD, now trading on the NYSE: CLNYpB COLONY FINANCIAL SERIES B 7.5% CUM PFD.

    I picked up a small position today.
    Jun 25, 2014. 05:35 PM | Likes Like |Link to Comment
  • Why I Sold Prospect Capital [View article]
    Thank you for your thoughtful article.
    Jun 19, 2014. 03:06 PM | Likes Like |Link to Comment
  • Colony Financial: 7.50% Is Nice, But I Like Series-A More [View article]
    Please elaborate on Thomas Barrack
    Jun 14, 2014. 10:58 AM | Likes Like |Link to Comment
  • Prospect: Portfolio Debtor Files For Bankruptcy, Meet New Century Transportation [View article]
    Thanks for another fine article challenging the conventional wisdom on PSEC. If you owned some of their debt would you sell?
    Jun 13, 2014. 04:00 PM | 1 Like Like |Link to Comment
  • Colony Financial: 7.50% Is Nice, But I Like Series-A More [View article]
    In comparing CLNYpB to CLNYpA, why do you place no apparent significance on the YTC comparison? Is that because you would if you bought CLNYpA expect to trade it well before the call date? Or do you think it unlikely to be called? To me YTC is a key point of comparison. What am I missing?
    Jun 13, 2014. 11:22 AM | Likes Like |Link to Comment
  • The Fed And Preferred Stocks: Perceptions Vs. Reality [View article]
    I agree with the basic thesis that PFDs are an appropriate substitute for bonds in today's market. I do not find the coupons of the PFDs illustrated attractive. In the event of a significant increase in interest rates higher coupon PFDs should hold up better and I am willing to use carefully selected non-rated PFDs (mostly REITS) to get a 7% or above current yield. I also like leveraged PFDs but through CEFs
    Jun 13, 2014. 07:57 AM | 1 Like Like |Link to Comment
  • Public Storage - 6% Is Nice, But Not Quite Nice Enough [View article]
    When I look at PS Series P with a 6.5% coupon and a mid-2015 call date, I think that if I buy a Series P what I am really buying is nothing more than a YTC far inferior to Series Z's. If you think interest rates will go up so much by 4/15/15 that the Series P won't be called, then and only then does it look attractive in comparison to Series Z. After all if it were callable today it probably would be called wouldn't it given that Series Z is only paying 6%? What am I missing? I agree that Series Y is a reasonable alternative to Series Z but not clearly that superior given its YTC.
    May 29, 2014. 04:53 PM | Likes Like |Link to Comment
COMMENTS STATS
382 Comments
252 Likes