B. Riley Baby Bonds: Up To 12% Yield Plus Large Potential Price Increases

Summary

  • We believe that the prices of the longer-term B. Riley Financial, Inc. baby bonds make them quite undervalued.
  • These bonds are not only relative bargains in comparison to shorter-term B. Riley Financial baby bonds, but are also extraordinarily undervalued relative to B. Riley preferred stocks.
  • We view this as an excellent opportunity to lock in double-digit yields to maturity, and with prices in the teens, these baby bonds also offer potentially large capital gains.
  • Looking for more investing ideas like this one? Get them exclusively at Conservative Income Portfolio. Learn More »

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Introduction

In the current market, the volatility and illiquidity have created many mis-pricings and opportunities to purchase very undervalued securities. We do a lot of analytical work at Conservative Income Portfolio to identify the sweet spots in the market as


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This article was written by

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Preferred Stock Trader has 30 years experience investing in preferred stocks and bonds. He utilizes a proprietary screening software researching high yield preferred stocks and bonds that are undervalued relative to securities with similar profiles for high total returns.

Preferred Stock Trader contributes to the investing group Conservative Income Portfolio which features investing ideas for undervalued preferred stocks, baby bonds, traditional bonds with the potential for high yield and capital gains. Features of Conservative Income Portfolio include: covered call opportunity portfolio, long term portfolio of stocks and bonds, exclusive articles for members, previews of public articles in advance, macro analysis, and community chat. Learn More.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of RILYN, RILYT, RILYZ, RILYM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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