I have a low 6 figure amount available for investing.
I am a fan of FRN’s and have already positions in NABHA, MBLHB and ORGHA which did quite well. Are there any other FRN’s with a yield of approximately. 5.5% you would recommend from an acceptable risk and good liquidity point of view?
A: I haven’t done an exhaustive search – however I am struggling to readily find any hybrid yielding 5.5% (I interpret this as the 90 day bank bill of 2.65%, plus a margin of 2.85%).
I checked a couple of the non banks:
a) AGKHA, which pays 90 day bank bill + 3.80%, at a price of $108.05, is trading at a margin 2.15%;
b) CWNHA, which pays a margin of 90 day bank bill + 5.0%, at a price of $110.50, is trading at a margin of 2.45%
Margins are to the expected call dates.
Very expensive!
