Ticker: FTAI-PA, Buy below $24.

Fortress Transportation and Infrastructure Investors LLC owns and acquires infrastructure and related equipment for the transportation of goods and people.

Why I Would Buy

1. Yield – 8.25% at par.   
2. Discount – Trading at discount to par.
3. Callable – callable within 4 years.
4. Insider Buying – High volumes of recent insider buying of common units of the issuer.
5. Strong Backers – 10% of issuer is held by Washington State Pension.

What Could Go Wrong

1. Yield –Very high yield and discount-to-par. Market has probably priced in the risks appropriately.

Disclosure: I am long FTAI-PA, please read additional disclosures here before taking any action based on this post.

Ticker: SCE-PL, Buy below $24.

Southern California Edison is electric utility located in Southern California.

Why I Would Buy

1. Yield – SCE-PL yields close to 6% at current prices.
2. Cumulative – The ordinary shareholders of Edison will not receive any dividends until holders of this security are paid.   
3. Qualified Dividends – A rarity among preferreds, the dividends of this security are eligible for 15% tax rate.
4. Discount – Selling at a 15%+ discount to par.
5. Strong Issuer – Parent company is Edison International, which is a large utility holding company.

What Could Go Wrong

1. Perpetual – SCE-PL is a perpetual preferred security with no mandatory call-date.
2. Credit Rating – The security is rated Ba1 / BB+ by Moodys and S&P, which puts it into non investment grade ratings.

Disclosure: I am long SCE-PL, please read additional disclosures here before taking any action based on this post.