Our site runs on donations to keep it running for free. Please consider donating if you enjoy your experience here!

Author: Innovative Income Investor

Large ‘Dump’ Puts Spire Preferred ‘On Sale’

In the last 3 minutes of trading today numerous big blocks of the Spire 5.9% perpetual preferred (SR-A) were traded dropping the price from $23.85 to $23.40–shares did bounce a bit in the after market to the $23.59 area. This is a current yield in the 6.3% area. There is a chance that if one wants a few shares at a discount Monday morning may be the time. The drop was on a multiple of normal daily volume.

Spire is a natural gas distribution company in Missouri, Alabama and Mississippi. The preferred shares are now rated BBB- (investment grade) by Standard and Poors. These shares would be an excellent safety buy at this yield–so course they have the risk with being a perpetual issues.

We have an overweight position in this issue and will not be adding more.

Wrapping Up This Decent Month

Only God nows for sure where we will end this day—DJT was active on Truth Social just 15 minutes ago so anything can happen.

As crazy as these days seemed, our portfolios have maintained their 13-month green stretch—although sometimes it has been by the tiniest of margins. But I am thankful that this ‘blind squirrel’ can keep finding a few nuts. With dividends/interest added in for 5/30 I hope to have about a .6% gain for May. I am under NO illusion that I will see gains like we all saw last fall. Green is green, and I will be trying to maintain the .6% monthly level.

I have updated the ‘laundry list’ of holdings today–it is getting kind of messy after a couple of years–I’ll have to try to come up with something that is less busy.

Economic news today continued to show little inflation flowing to the consumer and the various consumer confidence/sentiment numbers have been showing gains – it would appear that maybe folks are getting used to the chaos that has been occurring in governmen–only time will tell. Interest rates continue to trend a little lower with the 10 year treasury trading around 4.40% now after the dovish PCE report–I can’t imagine it will trade much lower unless congress slashes some spending (doubtful) instead of increasing deficits–the bond vigilantes will make sure rates stay elevated until the politicians get serious.

Well let’s get rested up for the week ahead—next week is employment week and we will see if we have any job growth in this crazy economy.

UMB Financial Prices New Fixed Rate Reset Preferred

Banker UMB Financial (UMBF) has announced pricing of their new fixed rate reset preferred issue.

The issue prices with an initial coupon of 7.75% which will be reset on 7/1/2030 at the 5 year treasury rate plus a fixed spread of 3.743%.

It is highly likely that a portion of the proceeds will be used to redeem the UMBFP 7% fixed to floating issue which goes floating starting 7/15/2025–this issue was originally issued by Heartland Financial which merged with UMB Financial.

The pricing term sheet is here.

UMB Financial Announces a New Fixed to Floating Preferred Issue

Banker UMB Financial (UMBF) has filed to sell a new fixed-to-floating rate preferred stock issue.

Of course it is non cumulative and pays the normal quarterly dividend.

The company has a fixed to floating preferred issue (UMBFP) outstanding which is redeemable on 7/15/2025–this issue has a giant sized spread of 6.675% (to be added to 3 month SOFR) and the banker no doubt wants to get rid of this potential 10-11% coupon so I would expect a call for 7/15/2025–here is their ‘use of proceeds’ statement–

We expect to receive net proceeds from this offering, after deducting underwriting discounts and estimated offering expenses payable by us, of approximately $    (or approximately $    if the underwriters exercise in full their option to purchase additional depositary shares). We expect to use the net proceeds from the sale of the depositary shares for general corporate purposes, which may include the redemption of all outstanding shares of the Series A Preferred Stock and the repurchase, redemption, or retirement of a portion of the 2030 Notes.

The preliminary prospectus can be read here.

Thanks to 2whiteroses for catching this one and to jerrymac for chiming in yield talk in the 7.875% area.