AAIC - Two Harbors: TWO-C Falls Behind Her Sisters

• TWO-C was in our buy range quite recently, but not anymore.
• The shares can be appealing to investors because they offer a respectable stripped yield, a discount to call value, and have some call protection on the calendar.
• Those are all attractive traits, but the recent performance of TWO-C took it beyond the price at which shares are highly attractive.
• Investors in preferred shares are free to follow a buy-and-hold approach, yet they can accelerate their gains by occasionally swapping between very similar shares.
• The focus for investors shouldn't simply be on the upside for TWO-C, it should be contrasting that value with the sister preferred shares: TWO-A and TWO-B.

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