For some investors it may be a reasonable idea to buy the Ready Capital 6.50% Senior Notes (RCP) due 2021. My idea is based upon the nice coupon and short maturity in April, 2021.
I mention this (and own it) because it is trading at $25.04-$25.06 and has 2 interest payments until maturity (January and April) for about 41 cents each.
Ready Capital (RC) actually has a 7% convertible note due in 2023 trading around $23.79 which has a better yield, but obviously is 2 1/2 years further out in maturity so has more risk built in.
Assuming financial markets don’t totally implode this seems like a good short term yielder.
Investors should do their due diligence to see if this might be right for you.
Update on the MVCD buyout from the Barings (who is buying them) earnings transcript on 11/10:
“We still expect the shareholder meetings to approve the transaction to be held in December with a targeted closing date for the merger in mid to late December. ”
So MVCD is basically called unless the deal falls through. Still a little meat on the bone if you are willing to take the risk. I don’t have a ton, but decided to keep it there since it is seems pretty safe the deal is going to close.
2WR,
I have a bid in on NGHCO but it hasn’t hit even with the drop in the market this past week. I am not going to chase it.
Thanks to everyone and this website for sharing. I may re-think it from all the comments here about AMTRUST and Maiden and ALLSTATE was never my favorite when it comes to insurance.
3rd qtr. the economy has come back but who knows what the fourth qtr. will bring. I don’t have a crystal ball, but when I have customers from around Calif, Ut and other places asking how business is and in return telling me they are steady but not as busy as 3 months ago I am keeping some dry powder
Johnkcal,
Thanks for the feedback, and the honesty. I still remember the slogan “you’re in good hands” Allstate was one of the insurers in the Oakland fire who took years to pay out, think the state finally had to step in. With all the fires and hurricanes and people dropping their whole life policy’s from being out of work, I wonder how the insurance companies are doing. I had MHLD preferred for a while a few yrs. back was greedy for the dividend. Glad I got out in time.
Same here with the shippers, but I only hold one KNOP am down a lot but hanging in because its a well run co. Oil is shaky right now. The frackers have a lot of debt overhang and they are not drilling so at some point which I think is already happening, the pipeline infrastructure which is overbuilt will have less oil to transport. So I hold nothing else related to oil. With lower demand even the refineries are shutting down. Natural gas may be safe in the future and pipelines from the gulf they can always reverse the flow for imported oil like it was 20yrs ago.
Thanks for the idea Tim, I was monitoring it and was able to pick up a position at 25.03 this morning. Cheers!