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February 27, 2017

Click here to see the Core Portfolio which lists all current positions.

We are buying CUBI-F (CUBIPRF at Fidelity) a preferred from Customers Bancorp….a publicly traded bank holding company based in Pennsylvania.  The 6% issue just went ex-dividend and this is a good time to purchase.

It offers a floating rate which protects investors against interest rate risk.

In December 2021 the distribution rate shifts to floating rate at LIBOR+4.76% which would be in the 6% yield range.  We have been buying positions in the Core Portfolio in anticipation of rising rates, and this is an addition to this list.

We are generally AVOIDING run-of-the-mill preferred stocks BUT the CUBI-F potential shift to a floating rate makes this a good buy right now.


Please take our ten second POLL 

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