GOOD PREFERENCE YIELDS
Treasury secrets are so annoyingly well kept that I do not pretend to know whether another large-scale funding operation will be hatched out early in the New Year. The top-hatted brigade in Caper Court can be heard whispering rather loudly to each other that something is in the wind, and nobody will be very surprised if they are right. Whether or not the Treasury
has something up its sleeve, there are enough indications at the moment that the demand for fixed-interest securities is likely to be well maintained. For investors seeking something over 4 per cent. with a high degree of security, the following group is worth consideration No. of Yield.
Times Current % •
Dividend Price. £ s. d. Covered.
Law Debenture Corporation, 5 per
cent. Cumulative £m Prefs. . 8 LW 4 6 Mercantile Credit 5i per cent. Cum.
£i Pref. .. 81 23/- 4 15 6 Charterhouse Investment Trust 41
per cent. Cum. £i Pref... .. 4 18/9 4 16 0 Trust Houses 6 per cent. Cum. £r
Pref. 3 27/9 4 6 .6
The Mercantile Credit preferences are redeemable as well as cumulative, but as the redemption price is 23s. 6d. a buyer is safeguarded from loss at the current level. The average return on this group of shares is £4 its. per cent.
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