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Headlines of Interest For Holders of Preferred Stock and Baby Bonds

Below are press releases from company’s with preferred stock and/or baby bonds outstanding–or just news of general interest.

Wintrust Financial Corporation Reports Third Quarter and Year-to-Date Results

CNB Financial Corporation Reports Third Quarter 2024 Results

Diana Shipping Inc. Announces Signing of a US$80.2 Million Amended and Restated Loan Facility Agreement With Danish Ship Finance A/S to Refinance its Existing Term Loan Facility With the Bank

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc. Announces Non-Transferable Rights Offering for Common and Preferred Stock

RiverNorth Opportunities Fund, Inc. and RiverNorth/DoubleLine Strategic Opportunity Fund, Inc. Announce Preferred Dividends

SL Green Realty Corp. Announces Common Stock Dividend

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

Selective Reports Third Quarter 2024 Results

Prospect Capital Corporation Upsizes Preferred Stock Offering to $2.25 Billion

KKR Real Estate Finance Trust Inc. Reports Third Quarter 2024 Results

Qurate Retail, Inc. Announces Annual Investor Meeting

Liberty Broadband Corporation Announces Annual Investor Meeting

Franklin Street Properties Corp. to Announce Third Quarter 2024 Results

Dynex Capital, Inc. Declares Common Stock Dividends

Kemper Announces Schedule for Third Quarter 2024 Earnings Release

SITE Centers’ Third Quarter 2024 Earnings to be Released Wednesday, October 30, 2024

Enterprise Financial Reports Third Quarter 2024 Results

W. R. Berkley Corporation Reports Third Quarter Results

Dynex Capital, Inc. Announces Third Quarter 2024 Results

Farmland Partners Completes $289 Million Farmland Sale

Great Ajax Corp. Announces Results for the Quarter Ended September 30, 2024 and Announces Intent to Rebrand to Rithm Property Trust Inc.

Atlantic Union Bankshares Corporation Announces Pricing of an Underwritten Offering of 9,859,155 Shares of Common Stock

Atlantic Union Bankshares Corporation Announces Agreement to Acquire Sandy Spring Bancorp

Atlantic Union Bankshares Reports Third Quarter Financial Results

How About a 5% 10 Year Treasury?

T Rowe Price chief economist is out with a call for the benchmark treasury heading to 5%–darned near a point higher than where we are currently positioned. The 10 year yield is up 9 basis points this morning to 4.16% and this is getting a bit critical for income issue pricing.

This situation puts us in a bit of a bind–severe capital losses if it even gets close to 5%–and dropping rates on CDs and money markets. I model a 10-15% capital loss at 5%. Many folks are simply happy to ride out the storm and collect their dividends and interest payments—I am about total returns and capital losses are painful since I am not drawing any retirement accounts payments and still are focused on building accounts up.

The best position is short duration securities which will move much less than either perpetual preferreds or long dated baby bonds. Higher coupons are better than the low coupon, high quality issues for retention of capital.

I am surveying my holdings and will likely ‘rearrange’ the portfolio somewhat–the juicy capital gains will be retained to a fair degree.

Weekly Kickoff

Once again equity markets moved higher for the week. The S&P500 closed the week at 5865 which was up .85%–around 50 S&P500 points.

The 10 year treasury closed at 4.07% which was unchanged from the previous Fridays close. Without employment numbers or news directly related to inflation markets remain fairly quiet. The total range of interest rates was around 10 basis points which historically is fairly tight.

This week may well be kind of quiet again as the economic news being released is more of a minor type, although we do have the ‘beige book’ being released on Wednesday which can move markets.

The Federal Reserve balance sheet fell by $7 billion–we should finally crack the $7 trillion level in November for the 1st time in about 4 years we will be at $6.xx trillion.

Preferred stocks and baby bonds took their que from common shares and moved higher on the week by 11 cents. Investment grade issues rose 7 cents, banking issues were 11 cents higher and CEF issues moved 13 cents higher.

Headlines of Interest for Owners of Preferred Stock and Baby Bonds

Below are press releases from company’s with preferred stock and/or baby bonds outstanding–or just news of general interest.

Customers Bancorp, Inc. to host Third Quarter 2024 Earnings Webcast on Friday, November 1, 2024

OceanFirst Financial Corp. Announces Third Quarter Financial Results

SiriusPoint Announces Date for Third Quarter 2024 Earnings Release

Texas Capital Bancshares, Inc. Announces Third Quarter 2024 Results

Mortgage Rates Continue to Increase

Bank OZK Third Quarter and First Nine Months of 2024 Management Comments

South Jersey Industries, Inc. Commences Tender Offer to Purchase for Cash Any and All of the Outstanding 5.625% Junior Subordinated Notes due 2079

Bank OZK Announces Record Third Quarter 2024 Earnings

Presidio Property Trust Provides Update on Model Home Activity in Q3 2024

Capital Southwest Announces Second Quarter 2025 Earnings Release and Conference Call Schedule

Allstate Announces September and Third Quarter 2024 Catastrophe Losses, Run-off Reserve Review and Third Quarter 2024 Implemented Rates

Webster Reports Third Quarter 2024 EPS of $1.10; Adjusted EPS of $1.34

Hercules Capital Announces Date for Release of Third Quarter 2024 Financial Results and Conference Call

A Barrons Article (and WSJ) on CLOs (Collateralized Loan Obligations)

Earlier today fabrib posted that some of the big money managers are now looking at launching CLO ETFs. Of course there are already a couple out there that concentrate on the more quality tranches of CLOs. This link should access the article.

Janus has the Janus AAA CLO ETF and the Janus B-BBB CLO ETF.

Anyway while poking around looking for information on CLO ETFs I came across Barrons article on CLOs–this is from April. An interesting read.

This information is just posted for all to access some information on this asset class which is misunderstood many times. It should be noted that when the big money moves into an area it makes me a bit nervous.

Note I don’t own and will never own a common share of a CLO company—I’m sticking to the ‘senior securities’–that is my risk tolerance.