Arbor Realty Trust Blasts Into Trading

As I suspected might happen the new Arbor Realty Trust 6.375% perpetual preferred has blasted into trading with shares now trading on the OTC grey market under ticker ABRRP. “Chatter’ around the web on this issue has been relatively heavy.

Shares are now at $25.57. I had an interest in this issue, but am not going to chase it–if it floats back down I may take a position.

The hunger for a decent yield continues as the 10 year treasury floats lower and lower – now at 1.55%. The inflation scare is over–for now–for how long no one knows (but we all have opinions).

16 thoughts on “Arbor Realty Trust Blasts Into Trading”

  1. Arbor Realty Trust, Inc. Announces Redemptions of Outstanding Cumulative Redeemable Preferred Stock
    MAY 26, 2021

    UNIONDALE, N.Y., May 26, 2021 (GLOBE NEWSWIRE) — Arbor Realty Trust, Inc. (the “Company”) (NYSE:ABR) announced today that it will redeem all of the outstanding (i) 1,551,500 shares of its 8.250% Series A Cumulative Redeemable Preferred Stock (the “Series A Preferred Stock”), (ii) 1,260,000 shares of its 7.75% Series B Cumulative Redeemable Preferred Stock (the “Series B Preferred Stock”), and (iii) 900,000 shares of its 8.50% Series C Cumulative Redeemable Preferred Stock (the “Series C Preferred Stock” and, together with the Series A Preferred Stock and the Series B Preferred Stock, the “Outstanding Preferred Stock”), at redemption prices equal to $25.00 per share of Outstanding Preferred Stock, plus any accumulated and unpaid dividends thereon to, but not including, June 24, 2021 (the “Redemption Date”). The Series A Preferred Stock, the Series B Preferred Stock and the Series C Preferred Stock trade under ticker symbols “ABR PA,” “ABR PB” and “ABR PC,” respectively.
    Notices of Redemption for each series of Outstanding Preferred Stock, describing the redemption procedures, were sent to holders of each series of Outstanding Preferred Stock on May 25, 2021. Additional information related to the procedures for the redemptions, including copies of the Notices of Redemption may be obtained from American Stock Transfer & Trust Company, LLC by calling (877) 248-6417 or by emailing help@astfinancial.com.

    1. Wasted no time on this one.

      There are other issues out there that have been past call for some time and should be called by the issuers. It’s a good time to be a little paranoid.

  2. Sold the last of my ABR-B this morning at $24.45 and thought I’d put in a low ball bid at $25.10 only to see that the bid-ask is $0 – $0. Same appears to be the case for the A and C series. Surely they did not call them this fast while the new D series just started trading today. I picked up some of the D’s at $25.55 because I think this dividend will be safe for a long time since Arbor keeps upping the dividend on the common every quarter, albeit only a penny at a time. Any idea why the three old series seem to have stopped trading?

    1. I got in on the new issue at $25.50 in a couple of accounts — a little to flip if the opportunity presents itself, and a little to hold.

      Given the other issues from the company are being called, this one might get more of a pop as people who held those shares seek alternatives. I might have overreached on price a bit if you look at the comparisons to what the other issues traded at, but I have made good money on Arbor issues in the past and have a decent level of comfort holding them.

      I would have gotten a better price but I had to attend a deposition where they were grilling my old business partner who embezzled a ton of money and the entertainment value of that alone was worth what I missed out on with Arbor!

  3. Thanks much Tim.
    Picked up a couple hundred at $25.54.
    It’s a real treat to get in early on these issues.

  4. Not many new preferred with a decent yield and IG rating or at least a good “feeling” to them (not IG) are buyable at par. Why miss out over 50 cents per share? Now if you planned to flip it that is one thing but not much lately gives one a chance to buy at par. All it takes is 3 months of cash sitting around doing next to nothing to make that approx 50 cents a moot point.

    Or is it just the ability of buying at par in the past and old habits die hard? Just curious

  5. Well! I have never been able to place an order through Vanguard online for a preferred stock that is OTC grey market without having to call the Fixed Income Desk and get them to place a limit order. for me. I called in and was informed by Vanguard that I could place a limit order online. for ABRRP. I just did it and used the ABRRP symbol also. That’s another first as I have always had to figure out the Vanguard symbol for a preferred stock. I know have a fish hook in the water with some bait on it. Wonder if it keep blasting up or will I get a bite at my limit number?

    1. In the case of a temp ticker there is no issue at Vanguard or elsewhere. Whatever ticker OTC assigns that is it.

      Vanguard can be fast to get new tickers up or very slow. ABRRP was buyable on the platform immediately after market opened this morning. Others can take a few hours to as much as a day.

      1. Bob-in-DE, this is the first time I have ever been able to do an OTC Pink sheet or gray market preferred stock online with Vanguard. If i understand you that has not been an issue before with Vanguard? I wonder if it might be tied to account value? Vanguard used to have different charges based on account value when they charged commissions for trades. I am quite happy though it worked for me this time. It was always a pain to do it through a phone call. They also had to review the prospectus to me.

        1. dj

          In the past, I have bought many preferred issues on the OTC Pink Sheets using Vanguard. Then, I can’t remember exactly when but I think it was this year or last, Vanguard announced that you would no longer be able to buy anything this way; Vanguard was doing this for “your own good” because they felt it was dangerous somehow.

          They never made an announcement reversing that decision, but they must have caught a lot of grief from investors, because now I have noticed that you can again use Vanguard for buying preferred stocks listed in the OTC Pink Sheets.

          1. Ok, that does make sense as it has only been in the last couple of years i have tried to do OTC buys. Only started when the mad dash to buy these ASAP started as everyone began to chase yield. Good for Vanguard to let us lose money properly! Now I can watch the painters paint my porch.

          2. Dono, Vanguard only selectively disallowed OTC issues back then. As I have always continued buying and selling all sorts of Pink Sheets. They really only squeezed the pink no information ones such as the DMRRP and MSSEL types. Those still arent tradeable. They even wouldnt allow me to buy BACRP, which is a full bloodied Bank of America preferred stock, so I snagged them on TD site.

  6. Well, that was sneaky. Didn’t see the symbol here – missed it on the Finra site- was there.

    1. Oh well Gary more will come. Or maybe interest rates will spike and you will get it on sale.

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