HSBC Holdings PLC-American Depository Shares

[Dante]

Does this look like a low-risk investment and a good income generator? Of course the 2010 callable part makes it good for really 5 years, one could argue. The best 5 year CDs are still only giving 5+% yield right now.

New Issue Preferred Security
15.00% Dividend Tax Rate Eligible

Description:HSBC Holdings PLC-American Depository Shares
Expected Coupon: 6.125-6.250%-Estimated
Rating:A1/A- Moody's/ Standard & Poor's
Price: $25.00
Maturity: Perpetual
Call: 2010 @ $25.00
Payment: Quarterly-Non-Cumulative
Tax Status: 15% Dividend Rate

Dante

 

[brewer12345]

Looks low risk from a credit perspective. However, note that this is a perpetual preferred, so if rates spike, you get killed.