14 thoughts on “Associated Banc-Corp Announces New Preferred”

  1. been away from a computer today… what happened that REITS got beat up so bad today?

    1. Just bought the (JPMLL) JP Morgan 5.75% new issue at $24.88 a couple days ago. Would be difficult to even put this (ASB) Associate Banc-Corp in the same sentence (nearly similar yields) as Morgan. I’m hoping the rate increase projected later this month (FOMC meeting 25-26) will drive some bargains our way. Wishing you profitable investing, Nomad

      1. Nomad–would tend to agree. We are slowly getting more reasonable prices in the market–very slowly. This week we have seen about 11 cents/share evaporate from the average preferred–last week was 10 cents–I prefer this low grind lower instead of a panic.

        1. Tim, looks like your flip out of GLP-A proved well as it has slide into 25.40s. I bought oversized position and flipped over half at $26 when I went back bigly into NSS again. Im determined to keep the 400 shares I own still in GLP-A though.

      2. Nomad, I can certainly see the appeal to adding this to the stable. I did something today I didn’t want to but an addicted to the action. I regretfully sold my GLIBP at 25.37 today ( bought at 24.66, couple weeks ago) so I could get 500 total more shares of ASRVP again at 28.08 and 28.10. This thing bounces up and down 40-50 cents like a jumping bean frequently. I bet I have made easily $6 a share profits in flipping these frequently the past 12 months. One of these days the call notice will bite me…But not today, lol.

        1. Grid, I sold my GLIBP today as well at 25.32. This has truly been a fantastic year of profitable round trip flipping. I have concentrated within 10 trading days of utilities, preferreds and baby bonds EX dates. I am still holding GLP.A as the 9.75% coupon is too hard for me to not hold for the next few years. I have tighten up on my core income holdings (muni’s, corporates, term baby bonds/preferreds) to shorten maturies greatly.

          1. Nomad, I cant let go of my remaining 400 shares of GLP-A either. I just needed to get it scaled back to a proportional serving for my stash size. I never was intending to ever hold them all as it was just too much money exposed in this one issue for me. I have tightened the duration ship as about as good as I can and still stay in issues I like and can trade. Still have a couple of perpetual issues though.

        2. Gee, I could have sold my ASRVP again today for 45 cent profit. Probably going to sit on it a while to keep me out of trouble. 6.7% YTM for 10 years is a decent anchor if yields bump….LTS_A…Back behind the woodshed you go again!

        3. Even allowing for the small amount of ASRVP outstanding and the Tier 1 status, I find it interesting this issue remains outstanding. But the price says folks aren’t worried. Heck of a premium for a callable security.

          1. Bob, yes it is! I consider it a tradeable issue, not buy and hold. But if rates pop a bit, this has less downside risk and a hold until maturity works also. Being holding company debt allows double leveraging. This is also why these don’t get redeemed by small holding companies. They threatened a lawsuit with Govt if they disallowed this trust debt. Toss in the “local investors don’t want it redeemed” mentality from small banks and for me, I feel comfortable owning. But…for me, if it got redeemed in a month I made more this year on it to cover redemption losses.

          2. If it’s insider ownership keeping it alive it wouldn’t be the first. They redeemed part of the issue many years ago but haven’t touched since.

          3. The bank got in financial trouble in early 2000s, so they made an offer to redeem ASRVP shares into common stock which over half the float accepted. Made it ok through the 08-09 crisis. The issue has remained untouched since.
            They have some private 6.5% trust debt also issued a couple years ago that is tier 2 capital. Just a little old plodding along tiny bank system, that has bank union employees. No bank will ever offer to acquire them with union status. Basically unheard of anymore.

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