LFT - How To Pick Between Similar Preferred Shares

• Comparing future cash flows from individual preferred shares can be a useful tool for figuring out which share should be worth more.
• IVR-B and IVR-C are out of whack. Neither is great, but IVR-C is clearly a better deal when it costs $.50 less than IVR-B.
• There’s a better deal in the preferred shares from Two Harbors. TWO-B dipped below our target buy-under price.
• Contrasting TWO-B with TWO-C (or with TWO-A) demonstrates that the recent weakness for TWO-B is more significant than the weakness in TWO-C and TWO-A (a positive sign for buyers).
• If the trade would have substantial (negative) tax consequences for you, it won't be right for you. Some people might actually see taxable benefits. Beware liquidity. Investors swapping positions should do a limited amount of shares in a single trade.

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