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Nothing Wrong with These Solid, Safe Yields!

Many of us are simply looking for a decent return on our investment with minimal risk to our capital.

We have found that exchange traded debt issues (traded generally on the NYSE) work very well for us.  They are easily bought and sold, commissions are our normal trading commissions, they pay quarterly interest payments and best of all---our capital is fairly stable.

These issues are normally $25 issues (and are callable after at $25 after 5 years) and likely are subordinated notes--meaning they are senior to equity issues, but junior to secured debt.

Issues in particular that we like now are Xcel Energy 7.6% subordinated notes (Ticker:XCJ) with a current yield of 7.3%, Comcast Corporation 7% notes (Ticker:CCT) with a current yield of 7.02% and American Electric Power 8 3/4% Jr Subordinated notes (Ticker:AEP-PA) with a current yield of 7.93%.

If you are looking for capital gains--these are not your vehicle, but if income is your goal these are pretty solid returns.






Disclosure---author is long  shares in all of the issues mentioned