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Convertibles issued by financially-sound companies tend to weather economic downturns better than convertibles issued by low investment-grade-quality companies. In this economic turnaround, these convertibles can provide relatively high income, and offer the best profit potential given any recovery in the underlying stocks. Conservative investors focusing on income and low risk should have a look at this screen. Here we provide a list of investment-grade-quality convertibles that offer a current yield of over 4%.

 

High-Yield, High-Quality Convertibles

 

 

 

 

 

 

 

 

Price

Current

Yield

Investment

 

Common

Convertible Securities

(as of 9/10/09)

Yield(%)

to Maturity(%)

Grade

Industry

Price

Citigroup $3.25 Series T       

28.30

11.5

 PFD

C

FinSvc

4.75

Wachovia Corp $75.00 Series L  

823.12

9.1

 PFD

D

Bank 

27.86

MF Global Ltd 9s2038 (144A)    

103.10

8.7

8.9

D

FinlSv

7.19

Old Republic Int'l 8s2012      

119.07

6.7

0.8

D

InsPrp

11.72

Equity Resid'l $1.75 E         

32.84

5.3

 PFD

D

REIT 

29.24

Simon Property $3.00           

56.48

5.3

 PFD

D

REIT 

67.43

Reinsurance Group $2.875       

57.61

5.0

 PFD

D

InsLif

43.31

Health Care REIT 4.75s2026     

100.82

4.7

4.7

D

REIT 

41.14

Health Care REIT 4.75s2027     

102.46

4.6

4.6

D

REIT 

41.14

GATX Corp 5s2023               

111.60

4.5

4.0

D

Mltyfm

29.26

BRE Pprties 4.125s2026         

95.21

4.3

4.6

D

REIT 

29.04

Weingarten Rlty 3.95s2026(144A)

96.77

4.1

4.2

C

REIT 

20.17

Hospitality Pprty 3.8s2027     

93.14

4.1

4.5

D

REIT 

19.05

United Dominion 4s2035         

97.52

4.1

4.2

D

REIT 

13.58

National City 4s2011           

100.88

4.0

3.3

C

MdBank

41.28

Washington REIT 3.875s2026     

96.60

4.0

4.2

C

REIT 

27.25

Vornado Rlty Trst 3.625s2026   

91.04

4.0

4.4

D

REIT 

60.15

 

BUSINESS PROFILES:

 

Reinsurance Group of America, Incorporated (RGA)is an insurance holding company. It is engaged primarily in life reinsurance and international life and disability insurance on a direct and reinsurance basis. In addition, it provides reinsurance of non-traditional business, including asset-intensive products and financial reinsurance. In 2008, United States operations generated about 58% of net premium income; Asia Pacific (19%); Canada (10%); Other international (13%).

Old Republic International Corp. (ORI) is a multiple lines insurance holding company. Its subsidiaries market, underwrite, and manage a wide range of specialty and general insurance programs in the property and liability, mortgage guaranty, title, and life and disability insurance fields.

Simon Property Group, Inc. (SPG) is a real estate investment trust. The company and Simon Property Group, L.P., the operating partnership, are engaged in the ownership, development, and management of income-producing retail properties. Weighted-average ownership interest in operating partnership was 79.8% in 2008. As of 3/31/09, the company owned or held interests in 324 properties in the U.S. with 245 million square feet of gross leasable area & over 60 properties overseas.