Finally the detail on the new American Financial Group (AFG) has been released.
The issue should trade in the next week or so. You will have to check your broker website to see when it trades–or if you are impatient you can place a phone call to your broker with the CUSIP noted in the grid below.
The pricing term sheet can be read here.
AFGD traded today and closed at $25.80. It was at $25.77 around 9:32 AM, so this one really ran away. I tried to buy some yesterday but neither Fidelity nor Vanguard recognized the ticker.
I own sister issue AFGB which closed at $26.89 so the market likes AFG debt. I do too.
Vanguard Bond Desk wasn’t able to get these for me today. Apparently the bond trading closes early just before a holiday.
I will try again early Tuesday morning.
AFGD has not yet recognized by Schwab, Fidelity or Vanguard Brokerage. In the meantime, Rida Morwa has a nice article on SA, actually written it seems by Preferred Stock Trader in SA on AATRL and a trashed baby bond by JMP, JMPNZ 6.875% (in the article) plus a sister baby bond JMPNL 7.25% trading way below par. Preferred Stock Trader is far more credible than the Rida Morwa bunch, as commented by Gridbird in one of the SA articles. Readers and followers of Tim’s WEB commented on AATRL. Glad that I picked up some AATRL just a few days ago. There are a sizable percentage of Rida’s subscribers who FOLLOW Rida to the Tee. If he calls for the Kolie, they will drink it WITHOUT asking any question. I would expect AATRL price to rise with the article. JMP baby bonds seem like perhaps similar kind of positions to RJL-A. Large cap decent hotel vs. small financial service unrated baby bonds. We all have Tim to thank to. All my best to Tim and his family for a great long weekend.
https://seekingalpha.com/article/4349360-2-extremely-mispriced-baby-bonds-from-jmp-group-and-affiliated-managers-for-high-returns?utm_medium=email&utm_source=seeking_alpha&mail_subject=preferred-stock-trader-2-extremely-mispriced-baby-bonds-from-jmp-group-and-affiliated-managers-for-high-returns&utm_campaign=rta-author-article&utm_content=link-1
Tim:
Are you sure that AFGD will be non-cumulative? The other 3 BB’s issued by AFG have a provision for 5 year dividend deferral, but are cumulative.
Thank you so much for this web site and all that you do to make it GREAT.
It’s a bond, so “ non- cumulative” is moot.