1/11/2025
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Below are press releases from companys with preferred stock and/or baby bonds outstanding–or just news of general interest. Earnings season is pretty much over so we will have slow news days for a month or two. Today in particular is totally dead (of course it is Thanksgiving Eve).
ARMOUR Residential REIT, Inc. Announces December 2024 Dividend Rate Per Common Share
Indiana banker Merchants Bancorp (MBIN) has announced a redemption of their 6% fixed to floating rate preferred (MBINO) on 1/2/2025. This was generally expected when the company sold their new 7.625% non cumulative preferred last week.
The redemption announcement is here.
I think we can assume that MOST relatively stable companies with outstanding fixed-to-floating issues will call them when available. This does not include mREIT preferreds, which have let issues with a 10% reset ride. Interestingly both Customers Bancorp (CUBI) and Valley National Bank (VLY) continue to have very high yielding issues out there.
I have a mostly complete list of fixed to floating and floating rate issues here.
We have lots of economic data being released today with the big news on inflation being released at 9 a.m. (central) within the personal consumption expenditures (PCE) report. But we also have lots of more minor news pieces being released as shown below.
Interest rates have held firm in the 4.27% area after the rally on Monday so for now it appears the upside pressure on rates has been lessened. We will see what the future holds–the Treasury still has to sell mounds of debt–but maybe less than originally forecast. The bigger question is whether we move closer to recession–or fall into a recession. Cuts in government spending will have consequences–what they will be or more importantly the timing of the cuts are less certain. It should be an interesting year ahead.
Yesterday I did double up my position in the Priority Income Fund 6% term preferred (PRIF-H). As I wrote yesterday (and we all know) making a buy or sell with relatively illiquid shares can be a challenge and while I hoped to pay around $24.10 I ended up with an average price of $24.20. The yield to maturity still remains favorable in the 8% (+/-) area.
Yesterday I updated my laundry list of holdings with the sector weightings of holdings. It’s all about CEF preferreds and insurance issues at 29% and 20% respectively. While I would would prefer to have a more balanced sector portfolio it isn’t going to happen right now-maybe in the future other sectors will present some bargains–but that time isn’t now.
Below are press releases from companys with preferred stock and/or baby bonds outstanding–or just news of general interest. Earnings season is pretty much over so we will have slow news days for a month or two.
Freddie Mac Issues Monthly Volume Summary for October 2024
Ellington Financial Announces Estimated Book Value Per Common Share as of October 31, 2024
While we often talk about ‘illiquids’ as many of the $50 and $100 preferreds it has become more and more apparent that the term ‘illiquid’ can be used much more broadly–to many of the $25 issues.
Today I have been trying to double up my position in the Priority Income Fund 6.00% term preferred (PRIF-H). This issue started the day at $24.04 and has a mandatory redemption in December, 2026—so getting me to 8% (+/-). I have changed my good-til-canceled order once and I am leery of chasing the price which is now at $24.15. I was able to get a partial fill at $24.15—so now my order sits. Total volume on the day is 400 shares–I would call that pretty illiquid.
PRIF in total is a pretty illiquid group right now–folks want a decent yield and the level of certainty which comes with the mandatory redemption. Below are the PRIF issue part way through the trading day.
