Tim McPartland | Innovative Income Investor

Headlines of Interest

Below are some headlines from company’s that have preferred stock or baby bonds outstanding.

ARMOUR Residential REIT, Inc. Third Quarter 2022 Webcast Scheduled for October 27, 2022

Diana Shipping Inc. Announces Delivery of the Ultramax Dry Bulk Vessel m/v DSI Pollux

Oxford Lane Capital Corp. Schedules Second Fiscal Quarter Earnings Release and Conference Call for November 1, 2022

Ellington Residential Mortgage REIT Announces Release Date of Third Quarter 2022 Earnings, Conference Call, and Investor Presentation

NGL Energy Partners Announces Earnings Call

Industrial Logistics Properties Trust Announces Third Quarter 2022 Results

Reinsurance Group of America Revises Third Quarter Earnings Conference Call Details

Assurant Reports Preliminary Third Quarter 2022 Financial Results

Energy Transfer Announces Increase in Quarterly Cash Distribution

Granite Point Mortgage Trust Inc. Announces Dates for Third Quarter 2022 Earnings Release and Conference Call

Global Partners Declares Third-Quarter 2022 Cash Distribution of $0.6250 on Common Units

SITE Centers Reports Third Quarter 2022 Operating Results

Interest Rates Tumble Hard

The 10 year treasury yield has tumbled hard–down 14 basis point to the 4.10% area.

Consumer Confidence came in much softer than anticipated and Case Shiller is showing that house price gains are decelerating sharply.

Add to this data that we have some Fed folks that are apparently beginning to hint at an interest rate pause (of course watch what they do not what they say).

Preferred’s and baby bonds are stable. If folks are expecting a quick snap back in prices based on a 1 day move in interest rates you will likely be disappointed. Historically it will take a minimum of say a week or two before we get any lift whatsoever and then it takes time–time to repair confidence in investors. Who wants to buy a preferred and take an immediate capital loss? My accounts are green today–but barely.

Today I have a couple low ball nibble orders in–one for some KKR Real Estate Finance 6.50% perpetual preferred (KREF-A) at a current yield near 9% and then a little more of the Brighthouse Financial 6.75% perpetual (BHFAO) with a current yield of 7.43% (split investment grade). Don’t know if these will execute.

Looks Like a Soft Market Day

S&P500 futures are off a bit this morning–not much but a little. Quiet day? Who knows of course, but with earnings season upon us anything can happen. The 10 Year treasury yield is lower at 4.17%–off 6 basis points.

Speaking of earnings I am anxious to watch BDC earnings (or lack thereof). In particular I want to watch for both realized and unrealized gains and losses. From what I have observed thus far the unrealized losses are fairly high–much higher than a year ago. Generally the well diversified BDC will do just fine for now, but there will likely be a few that fall below (or near) the minimum asset coverage levels of 150% (there are a few that still have a 200% minimum asset coverage requirement).

Yesterday residential mREIT Dynex (DX) reported as did commercial mREIT KKR Real Estate Finance (KREF) giving us an early look in these sectors.. Neither report was pretty—no one expected them to be great.

Yesterday we had soft purchasing managers numbers released. Today we have home price indexes released as well as consumer confidence. I would be surprised if either of these moved markets – important as part of the macro picture, but individually not important.

Headlines of Interest

Below are some headlines from company’s that have preferred stock and baby bonds outstanding.

Texas Capital Bancshares, Inc. Announces Quarterly Dividend for Preferred Stock

Apollo Commercial Real Estate Finance, Inc. Reports Third Quarter 2022 Results

Dynagas LNG Partners LP Declares Cash Distribution on Its Series A Preferred Units

Logan Ridge Finance Corporation Schedules Third Quarter 2022 Earnings Release and Conference Call

Navios Maritime Holdings Inc. Announces Results of the Tender Offer for Its Series G and Series H American Depositary Shares

Golar LNG Limited – Q3 2022 results presentation

Prospect Capital Corporation Announces Results of Cash Tender Offer For Any and All of its Outstanding 5.875% Senior Notes due 2023

W. R. Berkley Corporation Reports Third Quarter Results

KKR Real Estate Finance Trust Inc. Reports Third Quarter 2022 Results

Zions Bancorporation, National Association Reports Third Quarter Financial Results

Enterprise Financial Reports Third Quarter 2022 Results

Dynex Capital, Inc. Announces Third Quarter 2022 Results

Early to Bed Early To Rise

This is just a bit of trivia about the website.

Below is a chart of when folks are on the website. Essentially things start getting busy at 6 a.m. and then in the 2 p.m. hour activity starts to wind down, although a fair number of folks are around even at 9 p.m.

The darker the blue color the more activity there is–there is never a time in a day that I don’t see folks navigating around the site.