OCC 5.1% NCPS 100

• Current Price = $107
• Interest = $5.10 per share
• Yield = 4.77%
• Credit Rating = BBB+

Investment till Callable Date

• Tenure = 6.5 years
• Total Interest = $33.15 per share
• Capital Loss = $7
• Overall Yield = 3.76%
• Interest Rate after Callable Date = SWOR + 2.5% (Assuming they don't redeem at callable date)

This is another one which I have researched on and which I am considering seriously. It has a high yield of 4.77% with a long tenure of 6.5 years. The only drawback is the reduction in rates after callable date which is currently at 3%. However, this can be resolved by selling it about one year before their callable date. Looking at the trend, there is still enough time factor to reduce the capital losses to the minimum.

If I start to invest in preference shares, this is one which I will start with.