I like the high interest payments that these trust preferred securities offer. While the article doesn’t say I bet the interest is higher than even common preferred stock.
I also like the fact that the interest payments are tax deductible, since this is a hybrid investment that is part debt, part equity. What I don’t like is the fact that the issuer of the security can choose to “redeem” the security at any time.
This means that you may not be able to hold it to maturity. I guess that’s the price you pay for the higher interest – it’s increased risk. I don’t think this is for everyone, that’s for sure. Perhaps a small holding of these instruments, as part of a balanced portfolio, wouldn’t hurt you.