Corporate Bond Just Matured

[stevenr]

Hi, I had an $11,000 Johnson & Johnson bond paying 6.73% just mature. What would you do that money right now? What should I be looking for?

 

[bloom2708]

How long do you want to lock the money in for? 3 month Treasury is 5.4. 20 year Treasury is 4.8ish.

Federal Money Market is 5.29% 7 Day SEC for short term parking at Vanguard.

Likely for more risk you can squeeze out more rate.

 

[pb4uski]

I like ALL-B preferred stock... Allstate... yielding 8.68% at $25.74/share rated BBB-/Baa1. Callable at $25 so don't pay too much... be patient and wait for a pullback. I was able to buy it at about $25 back in January.

Another horse in my stable is RZC preferred stock... Reinsurance Group of America... currently yielding 6.72% at $26.60/share rated BBB+/Baa2. Callable Oct 2027 but currently at a high so wait for a lower price since yield to call is only 5.58% at $26.60. Since it's callable at $25 don't pay too much. I bought for $25.50 in early November at a 6.98% yield/6.81% YTC.

 

[aja8888]

I like ALL-B preferred stock... Allstate... yielding 8.68% at $25.74/share rated BBB-/Baa1 so a little more credit risk than JNJ.

PB, are you moving back into preferreds in anticipation of interest rates going down in the near future?