Heads Up–GasLog LTD 8.75% Preferred Tumbles-Updated

Update–PTrader has posted a link in the comments here that indicate that the company may call this issue before too long. I had a low ball order in on this on Tuesday but with the added info and the pop in the shares Tuesday I will not have an interest in shares.

The GasLog LTD 8.75% perpetual preferred (GLOG-A) tumbled in the last 2 days by about $1. It is now trading at $25.43 down from $26.40 2 days ago.

The issue is callable 4/7/2020 and some folks probably figured out there was ‘call risk’ and wanted out.

Shares went ex dividend on 12/30 for payment 1/2/2020 so they will be building accrued dividends which with the normal 30 day call notice minimizes the call risk cost. Whether the company would be able to call this issue is an unknown.

NOTE–this is not the partnership which is GLOP–this is the parent company.

I may pick up a small position.

Heads Up–Bancroft Fund A1 Preferred Dumped at Close Today (credit rating updated)

Closed end fund (CEF) Bancroft Fund perpetual preferred (BCV-A) took a tumble near the close today (Monday) falling 88 cents on a 966 share’dump’.

Folks need to realize when you put a market order to sell on a stock that average 1,625 shares traded each day you can get badly bruised.

This issue carries a coupon of 5.375% which is damned good for a nice investment grade issue (Moodys A1)–and with a closing price of $25.50 today (after trading as high as $26.46 last Friday) this is as good as it gets. Shares had good ex-dividend a few days 2 weeks ago.

If the drop late today stimulates more selling tomorrow I will be a buyer.

The Bancroft Fund is a fund managed by Gabelli.

NOTE–the issue is thinly traded and most charts are wrong–you should use a chart at your broker (Fido chart is correct).

Who Issues Preferreds and Baby Bonds?

Just a bit of trivia into who issues $25 preferred stocks and baby bonds.

Below is a chart that breaks down the number of issues of $25 issues outstanding.

This is really nothing new for those that have been investing in these issues for years–but maybe newer investors aren’t aware of the breakdown.

This doesn’t show them by dollars–just by individual issues outstanding. The chart shows banks are the largest issuer–and if I listed by dollar value it would show banks are by far and away the biggest issuer since the big banks–i.e. JPMorgan and Bank of America tend to sell issues with 30, 40 or 50 million shares–while REITs etc are more in the 1-10 million area.

Monday Morning Kickoff

Records continue to be set in the equity markets–even with a holiday right in the middle of the week. The S&P500 opened the week at 3226 before seeing a low of 3220, but turning higher on Friday and closing at 3240.

The 10 year treasury seems to have found a fairly “sticky” yield in the last few weeks–in the 1.85% to 1.95% area. Last week it opening at 1.91% before hitting 1.94%, but closed the week at 1.87% as it drifted lower last Friday. With the slow markets last week whether this is meaninfull at all is doubtful. I see that the yield has popped a bit this morning to be at 1.94% now.

The Fed Balance sheet popped again last week as it grew by $28 billion. This gives us total growth during December of an incredible $100 billion of Non quantitative easing (that’s what Powell says anyway).

Last week we didn’t have any new preferreds or baby bonds announced–probably will be the same this week with the holiday right in the middle of the week again.

Below you can see that pricing on shares of preferreds and baby bonds moved the tiniest amount higher for the week. Remember that ex-dividend dates occur during these period and distort the numbers a little, but with a larger sample size the distortions are minimized.

Priority Income Fund Term Preferreds on Sale

The Priority Income Fund (no publicly trading) is a closed end fund which holds collateralized loan obligations (CLOs).

There are 5 outstanding issues of term preferreds from Priority Income Fund and most of them have gone ‘on sale’ during the last month.

The issues are generally down 4-5% since highs reached in September. For instance the PRIF-C 6.625% issue is trading at $24.70 after hitting a high in the $26.20 area.

Shares went ex-dividend on 12/12 for payment on 12/31/2019–so there is no accrual in the shares.

Disclosure–I own the PRIF-D 7% issue. Additionally I’m looking to see if I want to add the PRIF-C issue now (both are small – less than full positions).

Being a CEF Priority Income Fund must maintain a 200% coverage ratio and they are currently at around 400% (at least last time I calculated it), but are assets are ‘level 3’–meaning the value is not directly observable so each investor should do their own due diligence as many may not be comfortable holding CLO related securities.

I expect Priority to issue more term preferreds in the months and years ahead as this is their method of utilizing leverage.

You can check all the outstanding issue here.

A Few Sells and a Buy

While markets are a bit quiet as we end the year we are trying to grab a few end of year gains (all in IRA accounts) and get ready for the new year.

Yesterday I let go of a full position in the Gabelli Heathcare and Wellness Trust 5.76% perpetual preferred (GRX-A). I loved the 5.76% coupon on a strongly investment grade issue (Moodys A2), but it is living on borrowed time. The issue closed at $26.01 yesterday and has been callable since 8/20/2015. GRX does have a 5.875% issue outstanding which is now callable which may ‘protect’ the 5.76% issue, but more likely they would call both. This issue was a ‘base’ position–one which is a long term hold in the portfolio so I will be looking for another base position.

Additionally I tried to sell the new Medallion Bank 8% fixed to floating preferred (MBNKP). This new issue traded very weakly early on – down to the $24.40 area–2 weeks ago, but closed at $25.22 yesterday. I had an average cost of $24.58. My limit sell was obviously a bit greedy as only 88 shares were sold, but hopefully will get it done today. These shares were bought only as a flip–no intention to hold this junky issue too long.

I bought the Urstadt Biddle 5.875% perpetual preferred (UBP-K) yesterday, mainly as a dividend capture move. The issue had fallen a bit yesterday and goes ex dividend in 2-3 weeks. The combination of a short term fall (I hope) and a foreseeable ex dividend date for 37 cents made this particular issue attractive. This will have a target of 1.5% so may hold through ex date or will sell when my target is reached – maybe before ex date.

I tried (but didn’t get an execution) to grab a position in the GDL Fund cumulative, puttable issue (GDL-C) for a ‘base’ position, but didn’t get an execution. I am happy with a 4% position for a base issue and it would help replace the Kayne Anderson 3.50% Mandatory Redemption term preferred (KYN-F) which will be called in April.

While there aren’t any big selloff going on it appears to me that there are some individual issues being ‘sold’. These are not large volume issues, but it appears that the sells are likely individual investors, so one may be able to snag a bargain today somewhere.

Into the Home Stretch

Well hopefully folks are getting through the holiday period with their sanity. With our 6 grand kids ranging in age from 4 to 15 holidays are becoming less stressful as they are quite content to play with each other instead of requiring adult supervision (at least as much).

So with just 4 trading days left in 2019 I hope we maintain our gains–I really expect market movements will be pretty muted, whether it be stock prices or interest rates.

Last night I was adding more data and filing in a few blanks in the database when I came upon an issue I thought I would mention. This is for folks looking for a stable value issue–with a relatively short maturity date.

The issue is the GDL Fund $50/share preferred (GDL-C).

This issue is cumulative, puttable and callable. The coupon is set at 4% for 2019 and 2020, which will potentially be reset later in 2020 for the next 4 years.

Investors can ‘put’ shares back to the company in March, 2020 and March 2022 at $50 plus accrued dividends.

There is a mandatory redemption in 2025 at $50/share.

The issue is trading around $50.90 and as happens with these types of issues it is somewhat illiquid–trading only 600 shares a day.

Being a Gabelli CEF (closed end fund) the fund must maintain a 200% asset coverage ratio–as of 6/30/2019 coverage was at 237%. The fund holds level 1 assets (common stocks mostly) and quite honestly, the fund performance is pretty lousy, but I am not overly concerned about the fund performance as long as they maintain asset coverage.

The issue is not rated, but would likely be investment grade if they decided to rate it.

So this issue has a lot of good qualities–for me the 2025 mandatory redemption is perfect. The puttable period in 2022 and the mandatory redemption will help maintain shares in the $50 price area. Also the 4% coupon isn’t too bad for this type of issue.

The company can redeem shares starting in March, 2021–but I would be surprised if a 4% issue were called.

Current yield is 3.93% and yield to worst is just under the 3% area.

I am pondering a purchase since I have a rather large position (for me anyway) of over 1000 shares of the Kayne Anderson 3.50% (KYN-F) issue and with the mandatory redemption in 4/2020 I am looking for a place to stash some ‘safe’ money.

It’s the Giving Season and Income Securities Have Joined the Festivities

This is the giving season–giving gifts, contributing to charities (even though we no longer can deduct our contributions) and trying to be a decent person (not always with success).

We all know common stocks have been “giving”–almost daily, but I am surprised that the preferred stocks and baby bonds I buy just keep on “giving” as well. Investment grade issues have been contributing greatly to good times, in spite of rising interest rates–at some point this will have to end–but now isn’t the time.

Some of us have looked for potential set backs with year end sell-offs or rebalancing and they just haven’t happened–so quiet–maybe too quiet

With the sortable spreadsheet I have posted I am able to drill down on what is happening in income markets really easily and below is a chart from December showing what income issues have done. I have removed issues that have suspended dividends.

The red line represents all $25 investment grade preferreds. The blue line represents all $25 issues–preferreds and baby bonds of which there are 655 issues. The green line is the 10 year treasury.

Of course during December we see a lot of ex-dividend dates — and there 100 more in the next week so we really need to see a longer term chart (I will keep tracking these numbers), but certainly for holders during the month of December the good gains continue.

I am anxious for the new year to start and am concerned that the easy gains of 2019 will become much tougher in 2020–we shall see.

Monday Morning Kickoff

The S&P500 traded in a range of 3183 to 3226 and closed near the high at 3221 last week as stock traders and investors continue to drive prices higher.

The 10 year treasury opened at 1.85% before moving as high as 1.95% before closing out the week at 1.92%. The question is can the rate move above 2%? As long as we see a very slow move higher I don’t mind seeing rates rise a bit–it will eventually put a stop to these sub 5% issues.

The FED balance sheet grew by a giant $42 billion. With the new QE the balance sheet has now grown $378 billion since 9/4/2019–this is really a giant QE–$90 billion a month.

Last week we had just 1 new income issue.

Gabelli Multimedia Trust sold a new 5.125% perpetual preferred which is now trading under OTC ticker GABGP. Shares last traded at $25.35

This image has an empty alt attribute; its file name is ggt.png

In addition to the Gabelli issue the new 8% foxed-to-floating rate issue from Medallion Bank (a division of Medallion Financial-MFIN) began to trade.

This image has an empty alt attribute; its file name is mbin.png

After starting out very weakly early in the week–trading as low as $24.40 the issue got some traction as the week wore on and the share price traded as high as $25/share, before settling back a bit in the $24.90 area.

Disclosure–I bought a 1/2 position at $24.49 and finished the 2nd half at $24.65. I likely will exit this position soon as it was meant only as a ‘flip’.

Another Investment Grade Issue Called

Bank of America (BAC) called their 6.50% perpetual preferred (BAC-Y) today for redemption on 1/27/2020 which is the 1st day they are available to be redeemed.

No loss will be incurred by holders as it was trading around $25.40 yesterday.

This is one more issue gone from the “Investment Grade $25 issues in or near 1st redemption date” list.

I did not have this issue on the list from back in November since it was a few months out, but it looks like I should update the list further with additional issues–say up to 3 months out.

Here is the list–showing how many issues have been called for redemption in the last month.

NOTE–the yield to worst shown is incorrect-as it doesn’t count accrued dividends/interest, but I hope to install a new formula before long.

I continue to hold the Vornado Realty Trust (VNO-L) perpetual (VNO-L) 5.40% and the WR Berkley (WRB-B) 5.625% Subordinated Notes.

The reason to hold some of these issues is because they are tied to $25 fairly closely because they are in, or near, potential redemptions and thus likely trade with less volatility–and their coupons are strong in the current rate environment.

As always if you have a Google account you can take your own copy of this list.

Wow–Power to the People–or At Least to Commenters (corrected)

There is definitely power in the commenters on this site.

Sometime back in early December–maybe 12/4–someone (sorry I can’t find the comment so not sure who it was) mentioned that the 7.10% CHS Reset Rate perpetual preferred (CHSCN) was tumbling hard the last few days.

Probably by pure accident I took a look–since I scan hundreds of comments each day I don’t have time to check everything out–but I did on the 5th. Shares had traded as high as $28.28 and now had tumbled down to around $26.70.

CHS has always been a favorite of mine–for no particular reason–maybe just because they are local to me. Being that the company had an ex-dividend date coming up (12/16) for 44 cents I took a modest position (wish it was more) at $26.76.

Shares went ex on 12/16 and shares were ‘marked down’ by the dividend amount–but it never actually traded at that level (as far as I can tell).

Shares had closed at $27.13 on the 13th (Friday) and closed on ex-date (Monday) at $27.04. It closed at $27.25 yesterday–and now trading at $27.12 (corrected these prices from earlier incorrect prices).

I am exiting today–not because there is anything wrong in holding further, but more so because the account it is in holds almost no cash at the moment–and I need some dry powder.

14 days–3% gain.


Holders of Eagle Point Credit Term Preferred Get a Call

Late today CLO holder Eagle Point Credit Company (ECC) announced the full redemption of the Series A 7.75% Term Preferred (ECCA) issue.

This should really come as no surprise as the company had redeemed 900,000 shares back in May.

The issue closed today at $25.95. With the redemption date being 1/31/2020 holders will receive 2 dividends yet (it is a monthly payer) of around 16 cents (32 cents in total). So holders today will see a capital loss of around 63 cents.

Thanks to Affinity4Investing for being right on top of this call notice.

Interest Rates Creep Higher and Higher

Only 3 months ago we had the 10 year treasury touching in the high 1.40%’s.

Today we see the 10 year treasury trading at 1.93%–a full 4/10th’s of 1 percent higher.

In general, we have not seen substantial damage to preferred stock and baby bond pricing. Sure we see some of the high quality very low coupon issues having trouble with ‘traction’ in moving higher, but the evidence shows that interest rates are having very little affect on pricing–so far.

Only today mSquare wrote on the new “Flipping and Dividend Capture” page that he/she bought the new AT&T 5% perpetual preferred for $24.9x on the OTC Grey market and just sold it on the NYSE for $25.6x. This shows that there has been hunger yet for ‘yield’ –even low yield.

Today Newman mentioned that he/she was getting a bit concerned with the 10 year treasury moving higher.

As income investors we all need to be concerned with higher rates, BUT one can not ‘run for the hills’ because there is no one that can predict what rates will do tomorrow and we all need some sort of income stream–it has almost always been true that money buried in the back yard earns little interest.

As the old commercial on the television used to say “speed kills” (of course talking about driving), but we know that interest rate movements can be fairly well tolerated if the movement is slow–2,3 or 4 basis points up one day and down 1 or 2 basis points the next. The move from 1.4x% to 1.93% took 90 days or so–and this move has been well tolerated.

At this point in time if we see a 1/8% spike higher 2 days in a row–that would be a bigger concern. The low coupon issues will act very badly if we get these kind of moves. Additionally the low coupon issues will act poorly even if we get slow moving higher rates–month after month after month.

Lastly we can never predict some major moves. A few years ago the markets threw a ‘taper tantrum’ simply because the FED suggested a reduction in quantatative easing. The 10 year treasury rose near 1/2% in 2 weeks–simply based on a ‘suggestion’ of a tapering that never happened.

So in summary I would encourage investors to do what makes them feel comfortable. If rates do pop and you lay awake nights – make some sales–store some dry powder–or if you fear the future–next week or next month–sell a little and hold the cash until you mentally feel better. I have made a few sales recently and am in no hurry to reinvest–more because I am hoping for some better pricing ahead. In my 15 years of purely preferred stock and baby bond investing every big sell off has resulted in the opportunity to buy good issues at low prices–so keep a little dry powder.

Axis Capital Formally Calls Preferred–Corrected

Some of our readers caught the ‘formal’ call of the AXIS Capital (AXS) 5.50% perpetual preferred (AXS-D) which was released yesterday. The issue will be redeemed on 1/17/2020.

I had owned a full position in this issue for a portion of this year as it was trading around $25 plus accrued dividends so I anticipated it being called at some point in time, but took advantage of the reduced volatility and issue like this provides to garner a safe 5.50% dividend for a few quarters.

The company had sold a $1000 subordinated note earlier this month and stated the intent to call the AXS-D issue. Investors need to remember that such disclosure in a filing for a new issue isn’t a formal call–that will be done separately with all the details of the call.

In this case after the subordinated notes were sold we put in a limit order to sell our position at a price that I guessed would be about the final realization of value based on a guesstimate of call date. I sold 60% of the holding, but will be carrying the last 40% into the official redemption date of 1/10/2020 when I will receive $25.176/share.

Corrected below

This issue has now stopped trading under the original ticker and is trading under AXS.PR. D.CL (or some such symbol depending on the broker). Currently quoted at 25.13 bid and 25.15 ask.

The call notice press release is here.

Discussion Page Added for Flipping and Dividend Capture

Someone suggested I set up a page for “flipping” and “dividend capture” ideas–so why not?

So I have dedicated a page where we can exchange some ideas on these shorter term techniques that we all hope will add a few hundreds–to maybe a few thousand dollars a month to our portfolios.

The page is here—and I have added a tab to the right column menu for the page.

Gabelli Multimedia Trust Prices Perpetual Preferred

Closed end fund Gabelli Multimedia Trust (GGT) has priced their previously announced cumulative perpetual preferred stock.

The coupon is fixed at 5.125%, which is about as expected for a likely strongly investment grade preferred. The company anticipates a A2 rating from Moodys, but thus far we do not see a Moodys rating on their website.

Being a closed end fund the company must maintain a asset coverage ratio of 200% or more and most recently GGT has a coverage of 382% (as of 6/2019).

The issue will trade immediately on the OTC Grey Market under temporary ticker GABGP–in fact I see a few shares have crossed around $25.03 today.

The pricing term sheet is here.

Medallion Bank Sells New Preferred

As some on the site already know Medallion Bank (a division of Medallion Financial (MFIN)) has sold a new issue of high yield preferred stock.

Note that this was sold last week, but has just begun trading. It is trading weak–now at $24.48.

Note that this issue is floating starting in 2025 and is NOT trading with a 3 month Libor rate, but is with 3 Month SOFR (the replacement for 3 month Libor). You can see the SOFR page at the New York FED here.

The coupon on this issue is high because they are a higher risk lender. Parent company Medallion Financial was the main lender for taxi medallions which has become a very poor business with the advent of Lyft and Uber. Recent financials appear to show they are slowly recovering by reducing taxi medallion lending drastically–which has involved many writedowns in the past.

Approach this issue with caution and make sure you do your due diligence.

The best place for research is the company website–here.

Medallion Bank is regulated by the FDIC so they do NOT file with the SEC.

Parent company Medallion Financial has a 9% baby bond outstanding which trades well–now at $26.33

For those wanting to access the FDIC regulated filings you can go here and then search by Medallion Bank.

CEF Gabelli Multimedia To Issue New Preferred

Closed End Fund (CEF) Gabelli Multimedia Trust (GGT) has announced a new issue of perpetual preferred stock. The issue should be strongly investment grade.

The pricing has not been announced via the SEC site but an OTC temporary ticker has been assigned as GABGP.

The company had previously announced the redemption of the 6% GGT-B issue on 12/26/2019 and they will use proceeds from this new issue to pay for the redemption.

There is just 1 other GGT preferred outstanding which can be seen here.

The preliminary prospectus can be read here.

Further company guidance can be seen here.

Flipping For Steak Dinners

I’m writing this more for newer investors that might be on the site rather than for those that are well seasoned in preferred stocks and baby bonds.

“Steak Dinners” is referring to quick, but modest profits, that some of us take from time to time.

THIS IS NOT encouragement to newer folks to employ these methods, but I know that throughout the website there are comments on what people are doing investment wise. There is nothing that is right or wrong–just what works for you.

Most times when I employ these methods of making a few extra bucks it is with issues I don’t really want to hold long term. I own mostly term preferred stocks and baby bonds with maturity dates in the next 2-10 years, but almost always have a decent chunk of cash in our accounts which I can use for “flipping” or “capturing” dividends. This is NOT true investing as most of us would define investing–but it works for me–mostly.

In my case if I see an issue drop based on news of some sort, I might take a position after the fall, expecting a bounce back at which point I would sell. Normally I am looking for 1% to 2% gains (25 or 50 cents on a $25/share).

Other times I may simply see an issue that is trending toward the lower part of the issue trading band and pick up shares looking to exit if a 1%-2% gain is realized.

Other times I may see an issue that is currently redeemable that is trading around $25 and I may buy it expecting the shares to move higher as dividends (or interest) are accrued–if it moves higher quickly I will sell the shares–otherwise I will hold until at least ex dividend date there by capturing a dividend.

Needless to say these techniques do not always work profitably, although the last couple of years have been a good period for most of my trades–although some have taken longer to “pan out” than was hoped when the position was initiated.

Here are a couple trades lately–I will walk through my thoughts and results.

On October 16th, 2019 Investcorp Credit Management (ICMB) announced that they were selling 600,000 shares of their 6.125% baby bond (CMFNL).

Being a ‘news’ event I thought there was a possibility for a quick profit–a week or maybe a month to play out.

Shares had been trading in the $25.50-$25.75 area prior to the announcement. Shares fell as far as $24.30 before bouncing back on the day (10/16) of the announcement and I bought 500 shares at $24.81. Unfortunately it traded in the $24.60 area a number of times over the next couple of weeks. I simply continued to hold the issue looking for my best exit. Fortunately it finally began to climb into the ex-dividend date (12/12) and reached $25.10. I held through ex-dividend, thus locking in the dividend, and I sold yesterday for $24.90.

On the CMFNL issue above the interest is a little above 38 cents quarterly and I got a measly 9 cent capital gain on the shares–for a total of 47 cents. I had hoped to ‘flip’ the shares originally for a 1-2% quick “steak dinner” trade in a month. Instead it took a full 2 months, but I did get near 2% so I am happy.

On November 22, 2019 Chicken Soup for the Soul (CSSE) 9.75% preferred was trading at $25.17 and I purchased 500 shares.

These shares trade somewhat erratically, but it had just come down from the $25.80 area so it looked ripe for a quick profit. I purchased my shares on 11/22 for $25.17. Shares were going ex-dividend for 20.3 cents on 11/29 (it is a monthly payor) so at a minimum I was going to grab 1 dividend.

Ex dividend date arrived and I held through the date thereby capturing the dividend and was able to sell for $25.21 on 12/2.

In this case I captured 20.3 cents on the dividend and 4 cents on a capital gain–a total of just under 1% in 10 days.

Since I had a plan I stuck to it–but this is one of those cases where one wishes they would have held on because the shares kept climbing and are in the $25.55 area.

Chicken Soup for the Soul is a newer company and while revenues are growing nicely, there is not much chance of a profit anytime soon and I didn’t want to stick around too long.

These are a couple recent trades and I have a couple others currently “in process”, but I am generally unable to do more than a couple of these each month as I don’t have time to ferret out the good candidates.

Lots of Interest In Filtering Spreadsheet

I’m really pleased with the number of folks reviewing, and I think copying the spreadsheet I posted last Friday (I have no way of knowing how many copies are made).

So far, while my instructions on copying and renaming the spreadsheet, are NOT being followed by many I think it is most likely that some do not understand the in’s and out’s of working with Google Sheets. I will publish a new set of instructions soon so that maybe more folks will be able to understand them.

Also there have lots of comments–too many for me to respond to all of them, but I am going to read them closer and see what “tips” are there for me to utilize.

I know for sure that a couple folks offered formulas for the Yield to Worst column. The formula I use doesn’t factor in the “accrued” dividends or interest and thus makes the number a little worse than it really is. I will be working on this in the week ahead.

Also some others have offered suggestions which I will be looking at.

Don’t forget that while a sortable sheet is nice all the issues are sorted in various manners on this page here.

Monday Morning Kickoff

Opening the week at 3142 the S&P500 moved lower to 3126 on Tuesday before moving higher to close the week at around 3169–short of a 52 week high in the 3183 area.

The 10 year treasury opened the week around 1.83% and drifted plus and minus a few basis points before taking a run all the way to 1.92% on Wednesday based on never ending Chinese trade rumors. Rates then drifted lower as the trade ‘deal’ turned in to not much at all–closing the week at 1.82%. We shall see the veracity of Chinese ‘deal ‘ claims this coming week – I would not be surprised to see rates drift through the week.

The FED balance sheet grew again last week–this time by $30 billion for a 3 week total of $65 billion–this non-QE, quantative easing is really quite the joke as FED explanations make little sense and as some on the site have posited–Who is in trouble? Is it the German derivative king Deutsch Bank (DB)? Or is the FED simply monetizing the massive debt of the U.S. Government? Sooner or later we will find out what the hell is up–but for now ‘party on’ -ignorance is bliss.

Last week we had a number of new issues priced.

Insurer WR Berkley (WRB) priced a new baby bond. The issue is not trading as of yet.

Closed End Fund Gabelli Equity Fund (GAB) priced a new 5.00% perpetual preferred which is now trading under OTC ticker GBLQP and last traded at $25.26

This image has an empty alt attribute; its file name is gab-1.png

Self storage giant Public Storage (PSA) priced a new perpetual preferred issue with a coupon of 4.75% which is trading under temporary OTC ticker of PBSGZ. The issue last traded at $25.10.

Searchable Spreadsheet Now Available for Weekend Playing Around

Below you will find a link to a Google Sheet.

We have added cumulative/non cumulative as well as qualified/non-qualified to the sheet since we last gave you a peek at this sheet.

We are calling this sheet Version 12132019–obviously because that is todays date. There are 672 issues on the sheet and should include most all $25/share preferreds and baby bonds as well as some miscellaneous. There are some convertibles not here, nor illiquids as we can’t get reliable quotes on some of these issues.




I am already working on the next VERSION, which I should have in a month. This means that a few new issues will be missing as I add a number of them every week (and I delete called issues).

Be aware that this spreadsheet has 3 separate sheets. I have ‘hidden’ 2 of them. The one showing is where you do the filtering parameters. If you want to make your own changes, after you copy the sheet, you can do so by going to View, Hidden Sheets, Alpha. The Alpha page is where you can make changes. I would strongly suggest not changing the sheet titled ‘list’.

If you try to make changes on the filter sheet it will break–just ‘undo’ to fix it.

Unless you are familiar with scripting etc and you fool around and break it bad–no problem, just come back and get a new copy.

Here is the sheet. Have fun.

Editing, Deleting Comments Now Live

Chad has got the new plugin for editing and deleting comments ‘live’ now.

When you make a comment you should see a box below your comment which will have a 5 minute countdown clock on it. You have 5 minutes to either edit–or delete your comment.

I have it currently set to 5 minutes, but will adjust as necessary–longer or shorter.

I will watch today and if anyone wants to comment–maybe it doesn’t work for them etc–let me know.

Watching REPOs By The Fed

As some of you may have read, or maybe I am the only one watching, the FED has announced giant sized REPO moves for the balance of the year.

I have been watching since September and the FED has done overnight repurchase agreements in the $50 to $75 billion area mostly–tossing in $15-$25 billion in 14 day repurchases agreements every 2 weeks.

Of course this is to provide liquidity to the banking system after a ‘blow out’ overnight lending rate spike of near 10% on September 15th.

Now we are 90 days later and the FED has announced they will be taking the the overnight operation to at least $150 billion. Yikes!!

I am of the thought now that this is all out on the table we will likely avert major issue—BUT there is a chance of a misstep–in particular in light of the fact that no one really seems to fully understand the market workings (certainly I don’t under stand it).

The point being is that we could see disruptions in the next 3 weeks–through the end of the year and no one should be surprised it something “breaks”.

The FED Statement of operations for the next month can be read here.