PrefLetter: Two New Recommendation Classes

The September issue of PrefLetter will be prepared as of the close on September 12 and eMailed to subscribers prior to the opening on September 15.

Two new classes of recommendations will be included:

  • Fixed-Reset: My disdain for Fixed-Reset issues as currently priced is well known, but some people like them! Clearly, some of these issues will be better investment choices than others. Now that the asset class has been added to HIMIPref™, a recommendation from this class of preferred share will be included with the other recommendations.
  • Short-Term: I do not usually recommend short-term issues for preferred share portfolios, due in part to the fact that the relatively low level of price volatility gives little opportunity for trading; also due to the idea that the recommendations are for long-term buy-and-hold investors. However, there is public demand for short-term issues. While I will not create a specific asset class for these issues, I will henceforth recommend at least one issue from the combined OpRet / SplitShare indices that would otherwise be ineligible for recommendation due to shortness of term. Note that by “short-term”, I generally mean (as is usual in the bond world) “less than five years”.

15 Responses to “PrefLetter: Two New Recommendation Classes”

  1. […] is being expanded commencing this month! Two additional classes of recommendation will be […]

  2. […] There is at least one recommendation from every major type of preferred share (two of them recently added); the recommendations are taylored for “buy-and-hold” […]

  3. […] There is at least one recommendation from every major type of preferred share (two of them recently added); the recommendations are taylored for “buy-and-hold” […]

  4. […] There is at least one recommendation from every major type of preferred share (two of them recently added); the recommendations are taylored for “buy-and-hold” […]

  5. […] There is at least one recommendation from every major type of preferred share (two of them recently added); the recommendations are taylored for “buy-and-hold” […]

  6. […] There is at least one recommendation from every major type of preferred share (two of them recently added); the recommendations are taylored for “buy-and-hold” […]

  7. […] There is at least one recommendation from every major type of preferred share (two of them recently added); the recommendations are taylored for “buy-and-hold” […]

  8. […] from every major type of preferred share with investment-grade constituents (two of them recently added); the recommendations are taylored for “buy-and-hold” […]

  9. […] from every major type of preferred share with investment-grade constituents (two of them recently added); the recommendations are taylored for “buy-and-hold” […]

  10. […] from every major type of preferred share with investment-grade constituents (two of them recently added); the recommendations are taylored for “buy-and-hold” […]

  11. […] There is at least one recommendation from every major type of preferred share (two of them recently added); the recommendations are taylored for “buy-and-hold” […]

  12. […] from every major type of preferred share with investment-grade constituents (two of them recently added); the recommendations are taylored for “buy-and-hold” […]

  13. […] from every major type of preferred share with investment-grade constituents (two of them recently added); the recommendations are taylored for “buy-and-hold” […]

  14. […] from every major type of preferred share with investment-grade constituents (two of them recently added); the recommendations are taylored for “buy-and-hold” […]

  15. […] resisted recommending FixedResets as part of the “ShortTerm” class that was introduced in the September 2008 edition, largely on the grounds that they are not, in fact, short term. They are just as perpetual as the […]

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