Subject: Re: WFC/L
A few months later...
WFC/L has fallen in sympathy with bond prices now 1079.20; yielding 6.94%
As a bond like asset you can guarantee a fixed income stream; however their is a risk that yields continue to rise and that the value of the underlying stock falls such that you might lose money if forced to sell. But given how high yields have risen,my understanding is that further increases will only lead to relatively modest price declines.
Overall the risk reward seems pretty decent; not quite as good as during the GFC, but still