$25 Issues @ or Near Early Redemption-Replay

This is simply a replay of the note I posted on 11/23/2019 and previous to that in September.

The number of opportunities in the investment grade arena has fallen since that time–i.e. issues are trading TOO HIGH.

I will work on a new listing for the next week and will include non-investment grade issues as well.

This is from 11/23/2019

About 2 weeks ago I posted this spreadsheet which is Investment Grade Preferreds and Baby Bonds Now Callable.

I am reposting–I did not update the dates as little changes over a 2 week period (although since the original post 6 issues have been called for redemption), BUT prices do change and I see a couple I don’t own that are in the list which I may pick up.

Currently I own the following off the list–

Axis 5.50% preferred (AXS-D)

WR Berkley 5.625% baby bond (WRB-B).

Vornado Realty Trust 5.40% Preferred (VNO-L)

So I now see a couple others that I will look closer at for potential purchase.

1st is the DTE Energy 5.25% baby bond (DTQ).

2ndly is the Kimco Realty 5.50% preferred (KIM-J)

The idea is that if interest rates don’t move too violently up or down these issues should stay relatively closely tied to liquidation preference ($25) while providing high levels of safety. I don’t really want to deal with any issues under 5%, because the redemption likelihood is small thus exposing the issue to bigger share price moves (down).

Here is the list again.

Note that the yield to worst DOES NOT include accrued dividends so the actual yield to worst is slightly better than that listed.

For those wanting the full investment grade list of baby bonds and preferred stocks you can click here. You can toggle on the bottom for investment grade.

21 thoughts on “$25 Issues @ or Near Early Redemption-Replay”

    1. Corrected (and removed) on this sheet and will get everything else as the day goes by. Thanks

  1. See my post in Canadian chat. Schwab is in the process of creating an OTC symbol for Power Financial Corp (PWF.PR.I). It is a callable FIXED rate 6% coupon, yielding 5.97% that has traded near par for almost 10 years. BBB+ S&P equivalent rating. This is, of course, a pure dividend capture investment.

    When OTC symbol is assigned (usually a day or two), I will post it in Canadian chat.

    1. Note on this. LimitYourRisk has posted a link saying PWF intends to redeem preferreds to save 15M per year. This is a high risk of being called

  2. This is minor, but thought I’d mention it. The Yield to Worst for BSA has wrong formula, it’s referencing a cell in another issue instead of your formula. Thanks for sharing this spreadsheet.

  3. Looks like AXS-D has been called for Jan 17 2020. KIM-J has already been called 12/31/19..

    I had increased my VNO-L and WRB-B positions mid 4Q 2019. Also, DLR-G in 3Q

    1. Yes BlueClaw–I indicated the post was an old one. I keep the spreadsheet updated though.

    1. Ptrader–yes it was–notice I posted an old article, which is what I indicated. The spreadsheet was updated to called earlier.

    1. Seems the next two WRB-B divis are priced in alright. I’m in at 24.97 from the past Xdiv day, I can’t see anything as good to switch to, and I’m already 40% cash (hello PULS) so I’m going to hold for now.

      1. mikeo–I let the last of my WRB-B go–no place to go, but this one has to be on the company radar for a call–although who knows for sure.

        1. Nice Tim. I sold mine too after buying it near $25. Trading above 1 + div payments, past call, and have a new cheap issue, so it is time for it to go and capture the gain.

          Speaking of gains… I was super excited to finally own SLG- I again and bought a lot when it dipped to $25.33. I was worried a call occurred but couldnt find anything. I had to let it go today with a $1 + gain in 5 days. Cant wait to deploy that cash again.

    2. Mikeo, I sold in 2019. High cash is tough!! I have nothing out of call and will have more cash coming in from another retirement liquidation. “Grit teeth, take finger off of trigger.”
      Thanks for the great spreadsheet Tim, I deleted my ‘Amer Float and FtoFl’ Watchlist. VERY helpful.
      I did review every Fl and FtoFl and the prices are sky high. If Mr Market is a fortune teller interest rate will never ‘normalize’ and these low rates are going to keep the sub-IG issues in business as far as the eye can see.
      Stay tuned for more adventures!

    3. I bailed out today with WRB.PB hitting north of 25.70. Will try buy back in after ex-div if the price is right.

  4. They are not too high, they are what they are. In fact it’s a Christmas miracle for long investors. If you sold too soon, hopefully you bought something else. A number of pfds went over 28 in December. I’ve advocated for selling 3.5 or lower ytc. And there are some 5 1/2% coupons w 25 handles and 4.5 ytc

    Nows a good time

    1. I get that they are what they are… but I’m still selling as the unrelenting melt up in equities is dragging a lot with it. I also liquidated my NXQ, NXP holdings and have a limit to sell NXR within a few pennies. When CEFs I bought at 92 cents are now at $1, and well above their average discounts, it’s time to sell and wait. Feels like everyone is greedy… so the optionality of cash is increasing. I’m still in the accumulation phase, so that changes my perspective as the divs aren’t paying my bills.

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