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John Huss

John Huss
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  • In The Wake Of Annaly's Downgrade, It's Time To Consider Alternative Options [View article]
    As a former owner of CIM, it shocks me that anyone could find CIM which can't even file its 2011 financials and which has plummeted in value in the last couple of years could be considered a better investment than NLY. AGNC maybe, but CIM??
    Sep 13, 2012. 11:46 AM | 15 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
  • Prospect Capital: Meet NMMB Holdings [View article]
    For the life of me I do not understand commentators who are willing to concede the possibility that management is deceptive about losses but consider that deception insignificant because the amounts are relatively small. To me a company whose management is deceptive on such matters is dangerous to invest in, regardless of share price, capitalization, and dividends.
    Mar 6, 2014. 04:41 PM | 5 Likes Like |Link to Comment
  • What's Wrong With Prospect Capital? [View article]
    Frankly, I am surprised that an article with this title omits any comments on the controversy over PSEC stirred by Lawrence Zack Galler's recent article on Seeking Alpha, "Prospect's Growth Hides Bad Underwriting." There may be a perception among some that more is wrong with PSEC than its removal from various indexes.
    Mar 6, 2014. 12:12 PM | 5 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
  • Helios Strategic Income Fund: The Best High Yield Bond Fund You've Never Heard Of [View article]
    HSA is leveraged. JYG and JNK are not. That difference is important in evaluating relative risk/reward, as is size (HSA is very small) and expense ratios (HSA is very expensive in comparison to an ETF or an open-end fund or even many others CEFs).
    Jan 8, 2013. 12:49 PM | 4 Likes Like |Link to Comment
  • Chimera Sets Its Payout Through 2012, But Expands Its Accounting Snafu And Related Risks [View article]
    Thank you for your thoughtful no-wishful thinking clearly reasoned article.
    Aug 13, 2012. 12:55 PM | 4 Likes Like |Link to Comment
  • Chimera Investment Updates The Extent Of Its Problems, Promises To Keep Paying A Dividend [View article]
    Given the alternatives in which to invest, I find it surprising that there are still defenders of a company so profoundly incompetent in its accounting procedures and one which has still not been able to draw the restatements to a conclusion.

    Are there any class action lawsuits yet against the compay and its previous auditors?

    I sold my position at a loss some time ago and have watched CIM continue to sink.
    Aug 7, 2012. 02:53 PM | 4 Likes Like |Link to Comment
  • Balancing Risk: REITs That Outperform In Good Times And Bad [View article]
    Why don't you invest in what you write in favor of?
    May 29, 2012. 07:53 AM | 4 Likes Like |Link to Comment
  • mREITs: The Perfect Hedge? [View article]
    Just maybe CIM's underperformance may have something to do with ththe fact that it hasn't been able to produce audited financial statements for 12/31/11 and 3/31/12!
    May 22, 2012. 08:08 AM | 4 Likes Like |Link to Comment
  • 'Sleep at Night' Investments, Part Two: Utility Exchange-Traded Debt Securities [View article]
    With regard to interest rate risk, a patient investor with a buy and hold strategy and a sensitivity to maturities as well as to call or redemption dates, both of preferreds and ETNs, may decide that it is rational to anticipate riding out the possibly short to intermediate term consequences of a spike in interest rates, particularly if the investor is being paid a healthy premium over what is otherwise available in the short to intermediate term fixed income market. What is a "healthy premium" is, of course, something which will vary for each investor, the age of the investor being one of the considerations as well as the perceived credit worthiness of the issuer.
    One pays a price either way one is positioned: staying short term sacrifices a great deal of current yield otherwise available if one is willing to go out beyond 10 years in maturity, for example. If you can't afford or choose not to be a buy and hold investor then one will suffer adverse consequences if one has to sell in a rising interest rate environment, but if one can ride out the storm , for example, by reinvesting coupons into new higher paying securities one might well end up net in a superior position to one who played it safer by staying short. Vanguard has some worthwhile material on this issue on their website, and has been thoughtful and consistent on this issue since the high finflation, high interest rate 1970's when I first became interest in this issue.. It is no accident that over a long term, long term higher yielding investments compounded tend to do better than short term investments which ordinarily have a lower yield.
    Of course, if one spends the dividends or interest payments when they come in there is a different sort of calculus to apply as well to deferred gratification issues! At my age I can't afford to wait for dividend growth in choosing my income oriented investments.
    May 4, 2011. 11:11 AM | 4 Likes Like |Link to Comment
  • 'Sleep at Night' Investments, Part Two: Utility Exchange-Traded Debt Securities [View article]
    A slight note of caution on your basic explanation: although it may not make much difference for utilities, it is important to note that bank debt is ordinarilly in a higher credit position (because it is usually secured) than the ordinarilly unsecured Senior Note. Senior Notes are only senior to other bonds. This is particularly pertinent when it comes to investing in REIT paper, given the likelihood of bank debt coming in line ahead of Senior Notes.

    ETNs are very likeable when you can get them at a reasonable price, because of pricing transparency which the over the counter bond market lacks.

    Thanks for another useful and informative article!
    May 3, 2011. 12:03 PM | 4 Likes Like |Link to Comment
  • Profiting With Preferred ETFs [View article]
    Most financial preferreds are Trust Preferreds NOT eligible for the 15% max tax on stock dividends. Large bank Trust Preferreds are likely to be called as soon as their call protection runs out once 1/1/13 hits and the Collins Amendment kicks in: TRUPS will no longer count as Tier 1 Capital. Large bank TRUPS selling below their $25 call amount are few and far between today.

    Buying a Preferred ETF for price appreciation today is very chancy. Buying for income is OK but note the annual fee and no active management to boot....Why not create your own ETF if you have enough money to diversify?
    Sep 3, 2010. 05:31 PM | 4 Likes Like |Link to Comment
  • 4 Reasons Why the Goldman Sachs Fraud Scandal Is So Dangerous [View article]
    What I don't understand is the lack of attention being given in this fiasco to the role and responsibility of ACA Management which did have and purportedly exercised the responsibility for choosing the bonds referenced in the synthetic CDO in question. Whatever John Paulson suggested, it was ACA which bore the responsibility. Bloomberg.com had an interesting article on ACA on Friday. According to the article ACA was thought to have considerable expertise in these matters.

    One wonders if ACA in talking with the SEC was trying to shift blame onto GS for their own gullibility. GS must be even more arrogant than the public believes if it stands behind the statement that they did NOT tell anyone that John Paulson would be long on this investment and that statement is false and can be disproven. Presumably ACA thought the opposite. But on what grounds? I think a failure to disclose exactly who is taking the short position on a synthetic CDO is no cause whatsover for complaint. Affirmative misrepresentation is a different matter.

    By the way--who ever assumed that GS in its dealings was not out for GS? It is a buyer beware world out there. People and institutions who believe they are sophisticated and capable of ferreting out the truth will likely continue to do business with GS. Even if GS was untrustworthy in this deal does not mean they are equally untrustworthy in every deal they are involved in. A CFO who can't figure out what is happening in a proposed transaction with GS probably shouldn't be a CFO in the first place.

    The level of hostility to GS and by implication the other Money Center Banks is, I believe, verging on the hysterical.
    Apr 18, 2010. 05:16 PM | 4 Likes Like |Link to Comment
  • Income ETFs: Safer Than Stocks, Better Returns Than Bonds [View article]
    For a conservative investor, investment grade bank preferred stocks with yields of over 7% would seem an attractive option in ROTH IRAS where the tax treatment at the individual level does not apply. Using preferred stocks in a ROTH IRA context seems to me like getting a municipal bond paying 7% to 8%. Granted there is an indisputable level of risk to preferred over senior level corporate bonds and there is effectively a call risk, but if one is a buy and hold investor in his 60's, this seems like a good deal if one is willing to bet on no more financial meltdowns for awhile.

    Am I missing something?
    Feb 21, 2010. 06:50 PM | 4 Likes Like |Link to Comment
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