Well I need to clarify first... I probably should have said those worried about long term capital protection would probably be better served by the term dated issue over a 6% perpetual. But clearly I have them spread out...Some term dated and some perpetual... For someone averse to losing capital permanently the 5.25% term dated is a better risk as you know in 4 years you get $25 returned to you. Its possible in 4 years a financially leveraged company that recently issued a 6% perpetual could see their $25 par issue trade at $20 over even lower and company would never call it, so permanent capital loss could happen long term...
But if you are truly just are searching for yield and not concerned about the capital, then 6% may be more applicable. I tend to hedge and spread out a bit in all angles...Term dated, perpetual, QDI, non QDI, liquid, illiquid, extra safe coverage of divi with lower yield, and some higher yield with somewhat higher risk. I have some current sub 5% QDI perpetuals and will never sell those no matter what, but they are only a small part to the income stash.