Strong Sell On Eagle Point Preferreds And Baby Bonds, Buy Oxford Lane Baby Bonds

2025-12-22 11:30:42 ET

Introduction

The idea that the market is efficient is a complete myth and even moreso when talking about preferred stocks and baby bonds. They're often mispriced, and because they're not very liquid, big buyers/sellers or preferred stock mutual funds can cause prices of individual stocks/bonds to spike up and down for no fundamental reason, providing unusually good entry and exit prices. Additionally, preferred stocks and baby bonds are primarily for retail investors who are often not very experienced or educated in how to analyze and price stocks, read balance sheets, etc. This also causes prices in this sector to be out of whack. By identifying securities that are undervalued relative to similar securities and buying them, while recognizing when securities are overvalued and selling them, you can handily beat the market. In my opinion, this is a far better approach than "buy and hold" which misses these golden opportunities....

Read the full article on Seeking Alpha

For further details see: