Innovative Income Investor | Innovative Income Investor

Just a Clarification

I just wanted to share that what I write on the website will now show up as from ‘Innovative Income Investor’ instead of my name. This is because Google News does not allow for an individuals name to show up on their Google News. So as a continuation of changes on the site I am making this change to get broader distribution of what I write and thus more traffic.

In my 16 years I have written 100% of the content on the sites (The Yield Hunter and Innovative Income Investor) and I suspect that will continue until the day I die (hopefully that is a long time away).

Pretty Quiet Today–Rates Steady with Equity Markets Closed

Of course today all equity markets are closed–although the futures markets were open until 8:30 (central time) but didn’t show much movement. Interest rates and stock prices are totally joined at the hip right now so one can’t expect much movement without all markets being open.

Tomorrow we get an extremely important jobs number–with 155,000 new jobs being forecast for December with the unemployment rate pegged to be unchanged at 4.2%. Obviously a super soft number could help bring don interest rates while something hot is going to send rates up toward 5%.

I am now starting to put together a list of potential buys of perpetual preferreds–I have no intention of buying any for now, but I want to be prepared. The perpetuals that I pared back a few months ago are trading 4-10% below my sale price–for instance the Affiliated Managers 5.875% baby bond (MGR) is now at $22.40 and I had sold part of my position at $24.92 and it is likely I will move back into more shares at some point in time. We’ll see.

New York Mortgage Trust Prices New Senior Notes (Baby Bonds)

Mortgage REIT New York Mortgage Trust (NYMT) has priced their new issuance of Senior Notes ($25/bond) at a coupon of 9.125%.

The issue matures in 2030–so with the short duration the share price should remain more stable than a very long dated maturity issue.

NYMT has many outstanding issues of baby bonds and preferred stock which can be seen here. The company sold a 9.125% baby bond in June which is trading at $25.08.

The pricing term sheet can be read here.

Ag Cooperative CHS Announces Quarterly Earnings

Giant CHS has announced earnings today for the 1st quarter of 2025 and as expected they came in somewhat soft. Net income was $244 million compared to $523 million in the year ago quarter.

While the ag sector came in softer than the year ago quarter the big soft fall came from the companies oil refining sector where the company had net income of just $20 million–$247 million less than a year ago.

I had written a few times on my low expectations on earnings for this quarter (and probably next) because of the difficult ag economy–and additionally because ag giant Cargill (privately owned) had reported on the softness in their business and they are in virtually every commodity in the world.

While the earnings were announced during market hours they had no affect whatsoever on their 5 outstanding preferred issues.

Earnings are here.

Headlines of Interest for Holders of Preferred Stock and/or Baby Bonds

Below are press releases from companys with preferred stock and/or baby bonds outstanding–or just news of general interest. Until earnings season gets rolling in the next few weeks news will be slow.