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...chip corporate bonds, according to Merrill Lynch. That's about as wide as the spread ever gets, and it means that investors today are promised a superior return with fully taxable preferreds. Among the best values out there, Merrill says, are the fully taxable preferreds of Comerica (yielding 7.44%), Torchmark (7.58%) and Virginia Electric & Power (7.26%). A handful of closed-end mutual funds invest in fully taxable preferreds, including the John Hancock preferred-income fund and three Quality Preferred Income funds launched this year by Nuveen Investments...

Author: /time Magazine | Title: Fishing for Yield? | 12/23/2002 | See Source »

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