Sock and Underwear Drawers

I think from time to time we confuse some newer readers/investors with our talk about various items–like “sock drawers”.

If I remember right Gridbird was one of the original users of the term ‘sock drawer’, which is where he ‘stashed’ his shares of various ‘illiquid’ (shares that very rarely trade) shares that were in his opinion safe and worthy of being put away and not ‘babysat’- for instance from obscure utilities etc.

From his use of the term many of us that have hung around message boards for years pretty much know that if someone says it is a “sock drawer” issue we know what that means. But not everyone knows the meaning of some of the terms that get tossed around–some folks see that term and wonder what the hell is the talk of socks. This is why I’m writing this little blurb on the various drawers.

I personally like to think of a lot of my holdings as those in my “underwear drawer“. These are issues that I hold for very long periods of time, but are not of the high quality of those in the “sock drawer”. For instance I own virtually all of the various Gladstone term preferred issues (Gladstone Land, Gladstone Capital and Gladstone Investment) and I have held their various issues for years. I consider these underwear issues because they are not the highest quality issues, but in a stable economy they perform well and I don’t have to ‘babysit’ them–just collect the monthly dividends.

In my ‘sock drawer‘ I have some Gabelli CEF preferreds such as Gabelli Utility Fund preferreds (GUT-A and C), AllianzGI CEF preferreds NCV-A and NVZ-A), Bancroft (BCV-A) and Ellsworth CEF preferred (ECF-A) , Kayne Anderson term preferred (KYN-F), Tricontinental preferred (TY-P) and others–super high quality, but not the higher coupons.

All issues in my sock and underwear drawers are pretty much ‘permanent’ base holdings and comprise 60-80% of our stock and bond investments. The balance of issues we hold are ‘here today and gone tomorrow’–if the price is right.

A blend of the sock drawer and underwear drawer hopefully provides with a 5.5-6.5% return on those fairly safe investments. Then it is hoped the balance of the accounts can provide a 7-8% return–so a blended return near my goal of 7% (while sleeping well at night).

We encourage readers to chime in on this topic (socks and underwear–I don’t mean boxers or briefs) to help the newer folks figure out our terms.

Brookfield to Buy Teekay Offshore Stake

Canadian partnership Brookfield Business Partners LP (NYSE:BBU) will buy the remaining holdings of TeeKay Corp. (NYSE:TK) in TeeKay Offshore Partners (NYSE:TOO). BBU is a unit of huge asset manager Brookfield.

TOO has 3 high yield preferred unit issues outstanding and they trade in the area of $18.80 to $21/share.

You can see the 3 outstanding issues here.

NOTE that this is not a buyout of TOO, but is a sale of the holdings of TeeKay Corp in TOO.

The details of the deal are thin at this moment, but it likely means good things for the preferred issues since TeeKay Offshore has had a rocky financial history. With Brookfield in the game the financials should become much less tenuous.

We had previous written about Brookfield and TeeKay Offshore in February.

Colony Capital Preferred Issues Moving Higher

The preferreds from REIT Colony Capital (NYSE:CLNY) have been moving higher this morning, likely based on reports that they have been in talks with Oaktree Capital about selling off some company units.

This giant REIT has under performed for years and the thoughts that they may actually do something about the under performance has no doubt ‘juiced’ the preferreds a bit.

The company has 6 preferred issues outstanding with current yields in the mid 8%’s.

Various issues from the company are up 2 to 70 cents this morning.

As far as high yield preferreds go these are likely as good as any. We have owned some off and on for quick profits–but have not owned them on a longer term basis.

The outstanding issues can be seen here.

Monday Morning Kickoff

Last week it looked like the “tension on the tape” was broken, but then the markets again settled into tight ranges of trading.

The S&P500 traded in a range of 2896 to 2940-closing at the high for the week. Tuesday the index moved up about 1% – this was the only day that showed much movement at all.

The 10 year treasury moved in a range of 2.50% to 2.59% closing the week at the low yield around 2.50%. This occurred despite the reported 3.2% growth in 1st quarter GDP which was reported Friday.

The FED balance sheet assets fell by about $3 billion last week. With the strong GDP you can be certain that the asset runoff will continue–and probably even some talk about a FED Funds rate hike will start. It is simply way too early to worry about any further rate hikes in 2019. I had originally (last year) predicted (guessed) that we would see a hike in June–but that won’t happen.

The average preferred stock and baby bond ended the week at $24.80/share a move higher of 8 cents over the previous week. There are now 231 issues trading at or below $25/share compared to 244 last week.

Last week we had new preferred stocks announced by Regions Financial (NYSE:RF) and KeyCorp (NYSE:KEY). RF sold an issue of fixed to floating rate preferred with an initial coupon of 5.70%–it is trading on the OTC Grey Market under ticker RXFCL and last traded at $25.44. KeyCorp sold a fixed rate, investment grade preferred with a 5.625% coupon. The issue is trading on the OTC Grey market under ticker KEYLL and last was priced at $24.92.

Energy Transfer which had an new issue trading on the Grey Market under ticker ETPEP has seen the units now moved to trading on the NYSE. This is a fixed-to-floating rate (7.60% initial coupon) which starts trading under ETP-E immediately. The shares last traded hands at $24.95.

Also the Sotherly Hotels (NASDAQ:SOHO) has seen their new 8.25% preferred move to their permanent market for trading. It last changed hands at $25.23 under ticker SOHON.

Lastly REIT UMH Properties announced a re-opening of their 6.75% UMH-C preferred. They initially announced a sale of 2 million shares, but that was upsized to 3.6 million shares which put plenty of pressure on the issue. Shares fell from the $25.70 area all the way back to the $24.80 area and closed the week at $24.86. I took a position on the fall and I am looking to exit with a 1-2% gain (we hope) in the next few weeks. NOTE the issue goes ex-dividend on 5/14/2019 so we would be comfortable holding through the ex date prior to exiting.

Wow-GDP Unexpectedly Strong

As happens on a continual basis forecasters of economic data were wrong–GDP did not crater in the 1st quarter even though some forecasters had it forecast to come in as low as 1% growth. The 3.2% growth reported (this just the 1st reading–there will be a couple revisions down the line) was above even the most optimistic forecasts.

The other thing you can be certain of is that folks like us like to ponder what will happen to interest rates if a high (or low) number is reported–almost always wrongly. I speculated a number higher than 3% would send rates higher–so what happens? The 10 year treasury fell by 2-3 basis points on the announcement.

So this announcement has made the FED look like smart folks and has set off talk of a need for a potential interest rate hike later in the year–maybe, but who really knows–no one!

For now I will just continue to enjoy the relatively Goldilocks markets and interest rates, hunt for bargains, build our base investments (the sock drawer issues) and do some short term flipping and let the talking heads dissect every little detail.

UMH Upsizes Preferred Stock Reopening

Yesterday REIT UMH Properties (NYSE:UMH) announced a reopening of the 6.75% perpetual preferred issue (UNH-C) with the intention to sell 2 million new shares.

Today we see the SEC final prospectus document shows they upsized the issuance to 3.6 million shares (with 400,000 additional available for over allotment). The filing is here.

This increase in supply no doubt will delay shares price recovery somewhat as the underwriter got the shares at $24.2125–so they will be shoveling them out the door quickly.

Shares thus far are taking the news in stride at the $24.90/share area on heavy volume.

The stock chart is here.

For the New Preferred Investor – Buying on the OTC Grey Market

As we were writing another article today we had a need to reference an old article we wrote in 2013 on trading on the OTC Grey Market.

The article is over on the DividendInvestor.com site (owned by the company that bought the old Yield Hunter website I owned).

While most of us are familiar with the process of OTC trading I guarantee you there are hundreds of folks visiting daily that are searching for further info on the process — which is why we are posting this link.

Buying On the OTC Grey Market

Standard and Poors Downgrades NuStar Issues

It has been brought to our attention by reader ‘D’ that S&P has downgraded virtually all equity and debt issues of NuStar Energy (NYSE:NS).

NS has 3 high yield preferreds outstanding as well as the baby bonds from NuStar Logistics.

The preferred issues which were rated B have been moved lower to B-. A B- is a really junky rating, but shares today did not seem to react (assuming they know of the downgrade).

The move to downgrade all the Nustar issues is based upon the amount of leverage the company is carrying (6.9x) for 2019. Fortunately S&P expects the leverage ratio to improve from this point forward.

If you have eTrade or Fido you can read the report on NuStar there–I can’t publish it here as they are vigilant on unauthorized reprinting.

All of the NuStar issues can be seen here.

We have updated our listings and individual security pages to reflect the most recent ratings changes.

UMH Properties Re-opens Preferred Issue

As noted by Eugene in reader alerts REIT UMH Properties (NYSE:UMH) has re-opened the 6.75% perpetual preferred issue with the selling of 2 million new shares.

The issue can be seen here. The issue has taken quite a little tumble with the reopening–around 3%.

The company SEC filing can be seen here.

Disclosure–we did take a position on this drop at $24.91. I am looking to hold for 1-2% gain when investors come to their senses.

Regions Financial Prices Preferred Issue

Regional banker Regions Financial (NYSE:RF) has priced their new issue of fixed-to-floating rate preferred stock with an initial coupon of 5.70%.

Of course this low coupon is disappointing to me, but was kind of expected as a number of readers had some early indications of this low coupon.

Honestly I just wish that 1 time the marketplace would reject low coupons that are junk rated–just once. Of course I “talk my book” as I would like to find something decent to buy. For now I will continue to reject low coupons and patiently wait for a higher coupon new issue–or a tumble in markets to provide the current yield I want to buy (6.25% to 7% depending on the issue).

This issue is rated BB+ by S&P, Ba1 by Moody’s and BB- by Fitch–solidly non investment grade.

The new RF issue will begin to float on August 15, 2029 at a rate of 3 month Libor plus a spread of 3.148%.

Shares will be non-cumulative, but will be qualified for lower tax treatment.

The company will sell 20 million shares–no over allotment shares are going to be available.

Shares will trade tomorrow under the OTC Temporary ticker RXFCL which will change to permanent ticker of RF-C once the issue moves to the big board.

The pricing term sheet can be read here.

Tension Off the Stock Market Tape

Well it appears the tension is off the stock market tape with the SP500 up almost 1% today. The interest rate “tension” is still there with the 10 year treasury off about 2 basis points today at 2.57%.

We think it is likely that it will take the 1st quarter GDP announcement on Friday to move the needle on interest rates. There is quite a wide range of estimates of GDP from 1% all the way up to 3%. Certainly anything outside of this range would move the markets–anything in the range can move interest rates a little bit–5 basis points–but probably not a big breakout higher or lower.

Through the 1st day and a half of the trading week we see the average preferred stock and baby bond has moved 2 pennies higher. In over 2 weeks the average price has moved in a range of 5-6 cents–I guess the tension on the tape is in the preferred stock arena.

Volume is low today in preferreds with the Citigroup N issue leading the way with 105,000 shares traded followed by NextEra Energy N issue trading 92,000 shares. This is much lower than recent volumes which hit 2 or 3 times this amount by midday. These 2 issues have moved 7 cents and 4 cents respectively–yawn.

The new 5.625% KeyCorp preferred is trading OTC Grey Market under ticker KEYLL and is pricing right now around $24.85/share on over 2 million shares of volume. Not going to drive this one higher too fast.

We are awaiting pricing for the new Regions Financial preferred which will come after the market closes–we are hopeful for something in the 6.25% area since it has a 10 year fixed rate period–but we have been disappointed continually with low coupons so maybe it will come lower–maybe our expectations are purely selfish hoping.

Regions Financial To Sell New Preferred

Regions Financial Corporation (NYSE:RF) will be selling a new preferred issue.

The issue will be a fixed-to-floating rate issue and will have the normal terms for a banking preferred stock. It will be non-cumulative, but qualified for preferential tax treatment.

This issue will likely NOT be investment grade – the other issues RF has outstanding are a couple notches below investment grade.

There is 1 change and that will be that the issue will be fixed for 10 years (2029) before it moves to the floating rate period. Maybe 3-5 years ago most of the f-t-f issues had fixed rate periods of 10 years, but in more recent years that has moved to a 5 year fixed period–maybe we are going to move back to 10 year fixed periods. In theory the longer the fixed rate period the higher the fixed coupon should be–we shall have to wait and see. We do note that RF sold a F-t-F issue in 2014 and it has a 10 year fixed period at 6.375% and it has traded strongly in the $27.80/share area. You can see it here.

The preliminary prospectus can be read here.

KeyCorp Prices New Preferred

Regional banker KeyCorp (NYSE:KEY) has priced their new fixed rate preferred with an rate of 5.625%.

The issue is rated Baa3 by Moody’s, BB+ by S&P and BB by Fitch–so a split rating either low investment grade or very highly rated non investment grade.

The issue is non-cumulative since it is a bank, but the dividends will be qualified for special tax treatment.

The company is selling 18 million shares and they will become optionally redeemable on 9/15/2024.

The pricing term sheet is here.

Shares are set up to begin trading tomorrow on the OTC Grey market under the temporary ticker KEYLL.

KeyCorp To Sell New Preferred-Updated and Corrected

Banker KeyCorp (NYSE:KEY) has announced a new fixed rate preferred issue is being sold.

Details of this issue have not been announced except that it will be non-cumulative (which of course we all know since it is a bank) and will have an early redemption period starting in 9/2024.

The preliminary prospectus can be read here.

KEY has 1 other fixed rate issue with a coupon of 5.65% which trades at $25.25/share. You can see it here.

Monday Morning Kickoff

Once again we start a week wondering if we will see some market movement of magnitude–one way or the other. We do note that 1st quarter GDP will be released on Friday and the Atlanta FED GDPNow forecast is now at 2.8% while the range of forecast from economist is between and 1 and 2% which is quite a contrast to the GDPNow forecast.

The SP500 traded in a range of 2891 to 2918 before closing the week at 2905–a range of less than 1% for the Good Friday shortened trading week. The 10 year treasury traded in a range of 2.54% to 2.61% before closing out the week at 2.56%.

The FED balance sheet assets fell by about $5 billion last week which gives us a drop of about $30 billion for the last month and leaves the balance sheet with $3.931 trillion in assets.

The average preferred stock and baby bond is trading at $24.72 which is 5 cents above the previous week. This leaves us with 244 issues trading at $25 or less which is virtually unchanged from the previous week (242 were at this level the previous week).

MLP giant Energy Transfer (NYSE:ET) was the only company to announced a new issue last week. The partnership announced a 7.60% fixed-to-floating rate issue which is currently trading on the OTC Grey Market under ticker ETPEP and last changed hands at $24.90/share. We did purchase a position in this one although we won’t likely hold long term.

The Sotherly Hotels new 8.25% preferred issue is still trading on the OTC under ticker SOHEP and closed last week at $25.20.

Fun Fact Friday

Since the markets are closed today we thought we would post a couple of website statistics.

Below is a chart of the type of device used to access the website.

As you can see for last year over 73% of visits to the website were made on a desktop computer. This isn’t surprising to me because for the 13 years that I have been publishing websites like this one the lions share of traffic has come from desktops–although it has slowly been falling over that time.

I think that obviously the demographics of the website visitor to this site skews to the above 50 crowd-we are the ones maybe at home accessing the site. The youngsters are at work or simply have no interest in income securities because they think (probably wrongly) that they can beat our performance with common stocks.

The other “fun fact” to share today is simply — which is the most popular page on the website (other than the homepage)?

It is the “Reader Initiated Alerts” page. This is kind of a surprise to me–I didn’t realize it was so popular with 1000’s of visitors every week. The page is here. Once I noticed so much good info from smart folks I set it up on one of my monitors to be on “fulltime”. Readers can usually find info on new issues etc., faster than I can read my RSS feeds and get the alert posted. Plus folks post info on some oddball issues that may be of interest to many.

Shakers and Movers Today-UPDATE

UPDATE–we should note that bargain hunters have come into the Washington Prime Group preferred. The WPG-I issue is up $1.45 and the WPG-H is up $1.34. This on fairly heavy volume of 40,000 and 108,000 respectively.

Honestly there aren’t many shakers and movers today in the income security arena, but as always there are a few.

Some of the shippers today are off in the 1% area–probably just normal noise. The Tsakos Energy Navigation 8.75% preferred (TNP-D) issue has been off 1-2% at $22.64 now. The Safe Bulkers 8% preferred (SB-C) is off about 1% at $21.75. Given the run these have had since the December lows a breather is in order.

Also we see the NuStar 7.625% fixed-to-floating (NS-B) is off 1% and is off $1.50 (6%) in the last 9 trading days–don’t know what is up with this one–doesn’t appear to have news or ex dividend dates affecting price. It is now at $21.11.

The new Energy Transfer (ET) is now trading on the OTC Grey Market and with 11 million shares trading is at $24.91–under ticker ETPEP. We are considering getting some of this to hold for a 1-2% rise in price–would only be a short term deal for me.

MLP Energy Transfer Prices Preferred Units

Midstream MLP Energy Transfer (NYSE:ET) has priced their most recent fixed-to-floating rate preferred units with an initial 7.60% coupon—about as expected. The coupon will be fixed until 5/14/2024 at which point the coupon will float at the rate of 3 month Libor plus a spread of 5.161%. This spread is quite superior to the other 2 preferred unit issues that the company has outstanding–the currently outstanding issues have spreads of 4.738% and 4.53%.

The company will sell 28 million units–a fairly giant issue, with another 4.2 million units available for over allotment.

The issue is rated Ba2 by Moody’s and BB by Standard and Poor’s–not investment grade.

Dividends will be cumulative, but will not be qualified for favorable tax treatment. Of course there will be a K-1 issued to the investor at tax time.

The permanent ticker symbol will be ETP-E when the issue moves to the big board–in the meantime it will trade on the OTC Grey Market under the temporary ticker of ETPEP.

The pricing term sheet can be read here.

The preliminary prospectus can be read here.

We will watch pricing tomorrow on the Grey Market and if it trades in the $24.75 area we will be buying for a shorter term potential 2% gain–into the $25.25–$25.40 area.

Giant MLP Energy Transfer Announces New Preferred Units

Giant MLP Energy Transfer (NYSE:ET) has announced the issuance of new preferred units.

The shares will be the 3rd fixed-to-floating rate unit the company will have outstanding.

The shares will carry with them the issuance of a K-1 at tax time.

Shares will like carry credit ratings of BB from S&P and Ba2 from Moodys–not investment grade but fairly strong.

The shares will likely be issued with an initial coupon of 7.50% to 7.625%, although with a fixed to floating rate issue there are many moving parts such as the spread that will apply when the coupon begins to float in 5 years.

The preliminary prospectus can be read here.

The OTC Grey Market ticker has been announced as ETPEP which means we should see pricing on the issue tonight.

“Tension on the Tape” Continues–Update

UPDATE–ETP has announced a new preferred unit offering–more to come.

For some that are much younger than me you may not recognize the phrase “Tension on the Tape”.

This phrase was used in the olden days to describe a fictitious (in my opinion) building of tension between buyers and sellers. Supposedly the bulls and bears are battling it out and no one can gain the upper hand–a tug of war of sorts. This is supposedly resolved when the “tape” finally breaks and we have a major move in the marketplace as the tension releases. I can recall the talking heads on the old Financial News Network saying “tension on the tape” all the time–back in the 1980’s.

Right now the SP500 is off .3% while the 10 year treasury yield is 1/2 basis point lower at about 2.59%.

Anyway I don’t think there is really any tension, but it certainly appears that an event of some sort will come along soon to change the minds of investors out there–right now to us it is fairly ‘goldilocks’.

Now if you are holding any of the Washington Price preferreds it isn’t goldilocks as their losses from earlier today have accelerated lower. The WPG-H issue is off $2.23 right now on big time volume (for a preferred stock) of 232,000 shares right now.

The GasLog Partners preferred are now down 2-3% in sympathy with the common units. My best guess is they will bounce back within a few days–we have them on the watch list for a potential quick trade in the next week.

The biggest preferred volumes today are in the Energy Transfer Partners preferred units. The 7.375% ETP-C units are off a little over 1%. The 7.625% ETP-D preferred units are down over 1% as well. Both issues have traded around 500,000 shares.

Mall REITs Continue Heavy Volume Losses-Update

The thrashing that started yesterday in Mall/Shopping Center REIT preferreds continues today, based on a number of recent articles in the Wall Street Journal and CNBC.

Right now Washington Prime (WPG) issues are taking the largest poundings with the 7.50% WPG-H preferred issue is off $1.38 to trade at $19.15 on almost 100,000 shares of volume. The 6.875% WPG-I preferred issue is right behind it with a loss of $1.05 on 39,000 shares. These issues traded down in the $12’s in recent history so even though they may tempt some investors they may have further to fall.

Of course the CBL preferred are off again–with the CBL-D and CBL-E issues off and trading in the mid $9’s.

We also notice the GasLog Partners (GLOP) preferreds off today by 1-2%. We had been in the GLOP-C issue earlier this year, but took profits–a continued fall may mean we will revisit the shares. We have not looked to see if there is news here to account for the losses. UPDATE-Further checking and as mentioned by readers the company was downgraded by Morgan Stanley.

Interest Rates Move a Bit Higher

The 10 year treasury moved about 4 basis points higher today (to the 2.59% area) thus far–doesn’t appear to be any particular reason behind the move and certainly it is of no concern at this moment.

Generally markets are quiet. The SP500 started off with a pop on various earnings announcements, but then the health insurers started to tumble based on political rhetoric so now it is up a measly 1/10th of 1%–sounds just like yesterday.

We are showing the average preferred and baby bond up 5-7 cents on the week thus far–obviously the previous rally ran out of gas.

The active preferreds are the usual suspects. REIT Washington Prime Group (NYSE:WPG) preferreds are are off 2% today and the CBL issues are off 1%. Also the Summit Hotels 6.25% preferred (INN-E) issue is showing big volume without major price movement–trading at $23.55.

The Apartment Investment Management 6.875% preferred (NYSE:AIV-A) is off 1% today as investors got caught on a redemption notice with only 14 cents of accrued dividends. Shares were trading in the $25.40 area prior to the redemption notice. Shares become redeemable on 5/16/2019 and that is the day they are being redeemed.

We also noticed the very nice HECO Capital 6.50% Trust Preferred (HE-U) from Hawaiian Electric was called for redemption on 5/15/2019. This has been callable since 2009 and we hate to see it go.

Stay Awake as These Calm Market Will Change

It’s another snoozer of a day not only in the interest rate sensitive areas but in common stocks as well. The SP500 is off 1/10th of 1% and the 10 year treasury has moved less than 1 basis points. Yawn.

We all know that after you start stringing together a bunch of days that are pretty quiet something is going to come out of the blue and send either stocks or interest rates gyrating (or both).

Last week, which was pretty quiet, we picked up a couple issues and we are looking for 1-1.5% gains before selling them off.

Prospect Capital 6.875% baby bonds (NYSE:PBC) took a bit of a spill last week so we got a larger than normal position at $24.87 and we see shares trading at $25.07–no immediate ex dividend in play here as it doesn’t go ex until 5/28 or so. Another nickel or dime and it could be gone–or we may just patiently hold.

Also we picked up a larger than normal position in WR Berkley 5.75% baby bonds (NYSE:WRB-D) at $25.20 and are looking for the same 1-1.5% in the next week or two. It goes ex on around 5/14 so I think we will see a lift prior to ex dividend. Again if we get the chance we may exit before the ex date–or we may hold right on through and pick up the dividend–depends on price action.

Both of these issues are investment grade so if we get ‘caught’ with them prior to our gain targets we are happy to hold them.

Remember we don’t advocate ‘trading’, but it is fun to do sometimes. We now have our “base” positions (buy and hold) and we are doing a little capture around the base.

Monday Morning Kickoff

Last week was one of the quietest weeks of the year in the stock averages with the DJIA trading in a range of 26062 to 26437 and closing the week at 26,412. Of course on Friday the big lift was from 1 stock–The Walt Disney Company which rose almost 12%. In previous weeks it has been Boeing which has moved the DJIA around–we will no longer use the DJIA as representative of “stocks” and instead will go to the SP500.

The SP500 traded in a range of 2873 to 2907 which leaves the average just about 1% off a 52 week high and all time high.

The 10 year treasury traded in a range of 2.46% all the way up to 2.56% which was the Friday close.

The FED balance sheet rose in assets by $2 billion last week to a current level of $3.936 trillion the 1st increase since the week ending 3/8.

The average preferred stock and baby bond closed last week at $24.67 which is a fall of 5 cents over the previous week. Reflecting this slight move lower is that there are 245 preferreds and baby bonds trading at $25/share or lower (compared to 226 the week before).

Last week we had only lodging REIT Sotherly Hotels (NASDAQ:SOHO) announce a new fixed rate preferred issue with a coupon of 8.25%. The issue is now trading on the OTC Grey market under ticker SOHEP and last traded at $25.10.

As we had mentioned last week we would be more than happy to see a small setback in preferreds and baby bonds this week as we have cash to deploy.