PICK OF THE MONTH
The pick of the month is a high yielding third party trust preferred with an 8.375% coupon trading about $5 dollars under par. At a price of $20.50, it yields an attractive 10.16% and has the extra benefit of a bond's place in the corporate structure. The Frontier Communications (PIY) preferred is callable any time and has a Ba2/BB credit rating. Frontier (FTR) is one of the nations largest rural telecom companies. Since the preferred is issued by Merrill Lynch, don't be surprised if the symbol (PIY) returns a security like ML DEP 8.375% PFDPLUS or Merrill Lynch Depositor, it's the right one. It's been one of our favorites for 5 years. See page 3 for details.