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High-Yielding Convertibles  

This week we highlight convertibles with high yields.  Very often, convertible notes and convertible preferreds trading below par or liquidation value generate high yields. However, they tend to trade with high premiums over conversion value, which allow little or no sensitivity to the activities of their underlying common stocks, and low premiums over investment value, which support their bond values. Generally, these securities are usually rated toward the lower end of the investment grade spectrum and, as such, are more suitable for yield-oriented portfolios. Still, speculative and patient investors can purchase these instruments in expectation that their underlying common stock will rebound significantly.

Below are the results of our screen for high yielding convertibles.  We’ve also highlighted two sponsoring companies.

 

 

 

 

 

 

 

 

Maturity

Recent

CV

Cv

I.V.

Convertible Securities

Date

Price

Yld(%)

YTM(%)

Gde

Industry

Adv. Micro Devices 6s2015      

5/1/2015

60.12

10.0

18

J

Semicn

Affiliated Cap Tr $2.575 (144A)

         

$14.25

18.1

 PFD

E

FinSvc

Alesco Financial 7.625s2027    

5/15/2027

75.00

10.2

11.1

H

REIT 

Apex Silver Mines 2.875s2024   

3/15/2024

4.50

63.9

74.1

H

Silver

Blockbuster $75.00             

         

$159.50

47.0

 PFD

I

RetSpc

Carriage Svcs Cap $3.50        

         

$26.50

13.2

 PFD

I

Ind Sv

Champion Enterprises 2.75s2037 

11/1/2037

15.21

18.1

19.6

I

ManHsg

Charter Comm. 5.875s2009       

11/16/2009

30.50

19.3

 NMF

J

Cable

Citigroup $3.25 Series T       

         

$27.76

11.7

 PFD

C

FinSvc

CompuCredit 3.625s2025         

5/30/2025

34.24

10.6

14.6

I

FinlSv

CompuCredit 5.875s2035         

11/30/2035

28.21

20.8

22.2

I

FinlSv

BUSINESS PROFILES:

Advanced Micro Devices, Inc. (AMD) is a leading maker of integrated circuits. It produces microprocessors for desktop PCs, portable computers, and servers, including Athlon, Turion, and Opteron designs compatible with Windows apps. The company also manufactures graphics processors (through ATI acquisition in 10/06) and circuits for communications equipment. Internet: www.amd.com.


Carriage Services, Inc.(CSV) provides death care services and merchandise in the United States. It operates funeral homes that offer various services, including consultation, the removal and preparation of remains, the sale of caskets and related funeral merchandise, the use of funeral home facilities for visitation and worship, and transportation services. The company also provides cemetery products and services, such as interment services; the rights to interment in cemetery sites, including grave sites, mausoleum crypts, and niches; and related cemetery merchandise, which include memorials and vaults. As of May 11, Carriage Services operated 134 funeral homes in 25 states and 32 cemeteries in 11 states in the United States. Internet: www.carriageservices.com.