November was a very volatile month, but a profitable one.
I share my results with you mainly for three reasons:
“No one should talk about investing; if they are not willing to show their actual holdings and performance.”
In October I started to rebuild my whole portfolio by buying back old positions and acquiring new ones. I also increased my total risk exposure to Apple Inc. Stock.
I share my results with you mainly for three reasons:
“No one should talk about investing; if they are not willing to show their actual holdings and performance.”
As you already know of the many kinds of interest rate arbitrage opportunities there are; my favorite asset class to arbitrage is with preferred shares. Preferred stocks can be defined as market securities with both equity and debt characteristics.
Before we start the discussion of how to apply the arbitrage strategy to preferred stocks we must first explain what they are; their characteristics, unique properties and special features. The most important thing that you should know about the corporate governance of the preferreds is that they are senior to the common shares, but junior to the bonds holders on the debt hierarchy, and that they do not have voting rights. However, the versatility of these equities creates many types of stocks and arbitrage opportunities. Let take for example the dividend yield characteristics; for preference securities yields are usually higher at a fixed or floating rate, with a cumulative or non-cumulative term and with a perpetual or redeemable (callable) period. We could also have convertible securities which create another way to invest and profit from the possible appreciation of the common stock. [Read More…]
Hi, My Name is Irving Rivera, and I'm NOT a Professional Financial Advisor but Allow Me to Show You WHAT I CAN DO.