Foreign Bank Preferreds

winnie · 12-23-2007, 01:37 PM

Has anyone been looking/buying at these lately?

OK, so I bought some Friday -- the preferred stocks of Royal Bank of Scotland, Deutsche Bank, and ING groep. THey have current yields of between 7.8 and 8%, and yields to call of about 12%. They all qualify for the 15% dividend taax rate.

Now i'm second guessing myself. I suppose none of these will go bankrupt, which would be the only reason for them to suspend payment. And the yields are tempting. But I've already taken a bath on regular domestic bank stocks this year, and wonder if i've set myself up for another one.....

Winnie

twaddle · 12-23-2007, 02:29 PM

There's a new ETF that specializes in this stuff if you want a little diversification protection: PGF.

But we live in interesting times. Housing bubbles in the US, UK, and Oz. Very nervous lenders and investors. Fun read here:

Crisis may make 1929 look a 'walk in the park' - Telegraph

winnie · 12-23-2007, 02:52 PM

Hmm. Nicely written article. Thanks for the link.

The next few months will indeed be interesting. I suspect there will be better bargains yet in this asset class, and intend to try and keep some powder dry....I always tend to buy too early on the way down.

winnie

saluki9 · 12-30-2007, 08:36 PM

We have been buying a lot of these. Especially Barclays and Aegon.

winnie · 01-02-2008, 02:43 PM

Hi Saluki--

Yes, I've been looking at Barclays too. But the yield isn't quite as tempting, especially when you look at the common stock...I'm hoping that the BCS preferred comes down a bit.

Today, that looks a bit unlikely -- a large move up in all these securities

winnie

12-23-2007, 01:37 PM	#1
winnie Recycles dryer sheets Join Date: Dec 2006 Posts: 63	Foreign Bank Preferreds Has anyone been looking/buying at these lately? OK, so I bought some Friday -- the preferred stocks of Royal Bank of Scotland, Deutsche Bank, and ING groep. THey have current yields of between 7.8 and 8%, and yields to call of about 12%. They all qualify for the 15% dividend taax rate. Now i'm second guessing myself. I suppose none of these will go bankrupt, which would be the only reason for them to suspend payment. And the yields are tempting. But I've already taken a bath on regular domestic bank stocks this year, and wonder if i've set myself up for another one..... Winnie

12-23-2007, 02:29 PM	#2
twaddle Thinks s/he gets paid by the post Join Date: Jun 2006 Posts: 1,377	There's a new ETF that specializes in this stuff if you want a little diversification protection: PGF. But we live in interesting times. Housing bubbles in the US, UK, and Oz. Very nervous lenders and investors. Fun read here: Crisis may make 1929 look a 'walk in the park' - Telegraph __________________ Favorite ERF quote: "I'm not going to waste my time on someone who's more interested in being stubborn or obtuse or intolerant." -- Nords Favorite ERF error message: "Sorry Nords is a moderator/admin and you are not allowed to ignore him or her."

Thread Tools	Search this Thread
Show Printable Version Email this Page	Search this Thread: Advanced Search
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode

Similar Threads
Thread	Thread Starter	Forum	Replies	Last Post
Long term bonds or Preferreds???	modhatter	FIRE and Money	10	09-23-2007 11:38 AM
Income - REIT Preferreds	IntoTheMystic	FIRE and Money	2	08-14-2006 03:11 AM
Foreign ER & Taxes	Saver	Life after FIRE	22	06-16-2005 12:43 AM
Foreign REITs	Familyretired	FIRE and Money	4	11-25-2004 06:13 PM
Foreign investments or not?	Natalie	FIRE and Money	3	07-16-2003 11:55 PM

12-23-2007, 02:52 PM	#3
winnie Recycles dryer sheets Join Date: Dec 2006 Posts: 63	Hmm. Nicely written article. Thanks for the link. The next few months will indeed be interesting. I suspect there will be better bargains yet in this asset class, and intend to try and keep some powder dry....I always tend to buy too early on the way down. winnie

12-30-2007, 08:36 PM	#4
saluki9 Thinks s/he gets paid by the post Join Date: Feb 2005 Posts: 1,776	We have been buying a lot of these. Especially Barclays and Aegon.

01-02-2008, 02:43 PM	#5
winnie Recycles dryer sheets Join Date: Dec 2006 Posts: 63	Hi Saluki-- Yes, I've been looking at Barclays too. But the yield isn't quite as tempting, especially when you look at the common stock...I'm hoping that the BCS preferred comes down a bit. Today, that looks a bit unlikely -- a large move up in all these securities winnie

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)