I had two people book sessions with me this week to talk about taking on cheap debt and buying Strategy preferreds to arbitrage the cost of capital vs the income earned.

There are additional risks to consider, but the simple math shows this type of trade making sense.

I'm building a calculator so people can simulate different scenarios for this.

Reply to this note

Please Login to reply.

Discussion

The risk is the yield not being there for the duration of the loan term...

There are many uncertainties and risks beyond that. But this calculator helps you understand potential rewards and the individual can evaluate that reward vs the risks.