Yesterday was a tremendously busy day for me–lots of windshield time and I had little time to watch the markets (except on my iPhone), but I did squeeze in a little time to execute a nibble.
Being old–I always forget the potential good buys that are out there and thus I don’t buy them when I had previously intended to do so. To this end I decided to start a ‘list’ of securities where I could hide some money-mostly on a short term basis while waiting for long term opportunities. The intent is to garner coupons beyond the money market and CD rates.
I have added a ‘list’ of short term hiding spots for good returns–not great returns, but good returns. The list is here (I label this the Hiding Spot list). I will be adding to this list as there other issues out there, but this was my starting point for the list.
Yesterday I took a nibble on the Athene 6.375% fixed rate reset preferred (ATH-C). I paid $24.98. This issue gets reset on 9/30/2025 at the 5 year treasury plus a spread of 6.375%—at todays rates the coupon would be over 10% for the next 5 years. This is an investment grade insurance issue (owned by Apollo) so there are high odds of a redemption in 6 months and my shares will be called away.
I will add this to my laundry list today.
Disclosure–I own 8 of 10 of these issues as of 3/21/2025.
Tim, thanks for all your posts and all you do to maintain this website. Do you have any concerns with WSBCP as a hiding place?
Tim; We must be looking over the shoulder at each others notes—LOL–I bought another 2,000 shares of ATHS this morning & now have 6,000 shares of it. The reset doesn’t even come up until March 30th, 2029 & I could even live with that as well. I couldn’t resist that 7.25% coupon at a very attractive price.
I picked up some cumulative NSA/PRB today for a CY of 6.8%. Would have liked to pay less for this issue but no takers and decided to just “get the deal done” for an issue I have been wanting to own. I am sure I’ll promptly see it marked down now!
My portfolio barely moves these days – like watching paint dry. I think that’s fine compared to the wild swings of my younger years.
Dan this was one Fido gave me a hassle with buying and selling.
Dan, NSA/b has had higher volume and an uptick in price recently. Anyone know if it was recommended on a SA forum? Just seems weird for this spike..
I like the issue, but used this new interest to offload my shares have held for months.
Not sure I would bet against this administration getting rates down. One way or another. You might emerge from hiding to find there are no decent yields to be found.
Dan,
History can repeat
https://www.britannica.com/topic/Smoot-Hawley-Tariff-Act
Interesting read as how the domino’s fell 90 years ago
In 1922 Congress had enacted the Fordney-McCumber Act, which was among the most punitive protectionist tariffs passed in the country’s history, raising the average import tax to some 40 percent. Then we had the roaring 20’s… I was surprised to learn we had high tariff rates more broadly in the 1800 and early 1900s which makes me question the current propaganda.
I mean there are lots of powerful global corporations arbitraging cheap labor in foreign countries while selling into U.S. markets and they don’t want that money train interrupted. They pay the bills at the WSJ and other financial media.
I say let’s give it a shot. Couldn’t be much worse than our current model of unsustainable deficits and hollowed out manufacturing.
just for thought, most everything was manufactured in the United States during that time period. Totally different today and certainly won’t change in the next 4 years. I just watched a video on history of the farm tractor, there were over 40 manufacturer in the US in 1920’s.
Interesting to read about the Fordney-McCumber Act history. It was enacted due to a ride in protectionism after WWI (sound familiar) and also in the midst of a terrible recession in Agriculture. Things were different back them as the US exported more than it imported and was able to manufacture a great deal more of things than today. I tried to find out how much revenue the act actually raised and could not find out. Interesting to know what impact it had on the federal budget. The articles I read about it was it was generally a failure as it lead to retaliatory tariffs, inflation in the US, didn’t help the farmers, damaged global trade, and eventually lead to the worldwide depression. It was followed by the Smoot–Hawley Tariff Act of 1930, which didn’t help the developing worldwide depression. Seems like I have learned more about tariffs in the last month or so and still don’t quite know where we are going!!
dj isn’t the kind stuff they teached in high school even when I was going in the 70’s I can’t imagine what they are teaching about in econ 1 & 2 now.
Dan—100% agree with you–that is why I keep my toes dipped in the water with a few perpetuals. If I am ‘forced’ to accept just 6 or 7% overall I am more than happy. These issues are for times of pretty severe uncertainty.
For sure. Thanks to your guidance I do have plenty of those types of issues as well also a good chunk of floating rate. I wouldn’t touch fixed rate anything for the past several years. Now I am about 50/50 which feels about right.
Thanks TIM-
Own 5 already- always concerned about Brookfield / Argo, but maybe it will keep trading.
Good list Tim, I’d suggest adding ANG-B with a reset of 6.297% on 9/1/25.
Hmm- more Brookfield- seeing a trend
Tim,
Thanks for sharing the hiding spot list. Looks like a lot of good prospects.
Greg–I won 8 of 10. Probably will own them all by the end of next week.
ATLCL has a ytm of over 8% matures 11/30/2026
ATLCL YTM 9%
ATLCZ YTM 9.4%, YTC 9.5%
from my spreadsheet calculator