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Waiting For What We All Know is Coming

Markets–and in particular interest rates are quiet–the 10 year treasury yield is less than 1/2 basis point from the close yesterday.

I am pretty certain that we all know there is a 1/4% rate coming and then the Jay Powell presser will stress that GDP is decent and employment is strong and there may be a need to ‘pause’ further rate cuts. This would give the markets almost exactly what they are looking for right now. The CME Fed Watch tool is at 98% for a 1/4 point cut today, but only at 19% for January for a cut. Unless we see something drastic happen in the economy the FOMC will not cut in January with numbers like that. The Atlanta Fed GDPNow has 4th quarter GDP at 3.2% as of today–not exactly a soft growth picture. Let’s get this noise behind us so we can invest.

Did You Know? General American Investors

I have held shares in the 5.95% General American Investors (GAM-B) for a long time–I think it has been years–certainly off and on for years.

GAM is a solid closed end fund with $1.6 billion in assets and the only leverage they use is this issue of preferred shares—they have a asset coverage ratio of 837% as of 6/30/2024.

The interesting item of note is that the Board of Directors has a buyback in place for the preferred shares anytime they are under $25/share. They have authorized up to 2 million shares being bought (original issue was 8 million shares)–thus far to date they have bought just shy of 400,000 leaving lots of dry powder for further purchases.

Does this buyback authorization help to keep this high quality modest coupon price above $25? Not positive of the answer, but I do know that it doesn’t hurt.

Headlines of Interest to Holders of Preferred Stock and Baby Bonds

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.

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CTO Realty Growth Expands Presence In Tampa Metro Area with Acquisition of Grocery Anchored Property

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Hyperscale Data Currently Mining Approximately $26 Million Annually


PhenixFIN Corporation Announces Fiscal Year and Fourth Quarter 2024 Financial Results

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Dime Community Bancshares Declares Quarterly Cash Dividend for Common Stock

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First Internet Bancorp to Pay Cash Dividend

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Schwab Center for Financial Research Announces 2025 Market Outlook

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Maiden Holdings, Ltd. Announces Sale of Maiden General Försäkrings and Maiden Life Försäkrings

Fulton Financial Announces Dividends

Headline of Interest to Holders of Preferreds and Baby Bonds

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.  

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Star Bulk Carriers Corp. Announces an Amended Dividend Policy and Share Buy-Back Under a New Share Repurchase Program

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NewtekOne, Inc. Declares a Quarterly Dividend of $0.19 per Share


Diana Shipping Inc. Announces Time Charter Contract for m/v Maera

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Hyperscale Data Sells St. Petersburg Development Property for $13 Million

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AXIS Advances Transition to Specialty Underwriter, Announces Loss Portfolio Transfer Reinsurance Agreement With Enstar on Reinsurance Segment Reserves

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AG Mortgage Investment Trust, Inc. Announces Fourth Quarter 2024 Common Dividend of $0.19 per Share

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Synovus to announce fourth quarter 2024 earnings results

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Xcel Energy Announces the Early Results of its Cash Tender Offers for Outstanding First Mortgage Bonds Issued by Northern States Power Company (a Minnesota corporation)

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Bridgewater Bancshares, Inc. Completes Acquisition of First Minnetonka City Bank

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Pebblebrook Hotel Trust Declares Dividends for Fourth Quarter 2024

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Air Lease Corporation Announces Closing of $966.5 Million Unsecured Term Loan Facility

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Great Elm Capital Corp. (“GECC”) Declares $0.05 Per Common Share Special Cash Distribution and Approves First Quarter 2025 Distribution of $0.37 Per Common Share

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Rithm Capital Corp. Declares Fourth Quarter 2024 Common and Preferred Dividends

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Ellington Financial Inc. Completes First Securitization of Closed-End Second Mortgages