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RiverNorth/Doubleline Strategic Opportunity Fund Issues New Term Preferred

CEF RiverNorth/Doubleline Strategic Opportunity Fund (OPP) is issuing a new series of term preferred stock.

Via a rights offering to current shareholders the company will be issuing around 419,000 Series C term preferred shares under the ticker (OPP-C). The company has applied to have shares listed on the NYSE. The shares have a $10/share liquidation preference.

The rights offering results can be found here.

The mandatory redemption date will be December 1, 2027. There will be no early redemption feature.

My assumption is the issue will be rated A1 by Moodys as the other 2 preferred issues are rated–the Moodys rating has not been updated since 12/2023.

I have seen not grey market listings yet (nor do I know if it will trade OTC)—we will have to keep an eye open for details on any public exchange trading.

OPP has 2 perpetual preferred issues outstanding with low coupons–4.375% and 4.75% which are trading in the $19 area for current yields in the 5.8% to 6% area.

A Good Day to Take Off

Today there are only a few hours of trading in markets and it hard to get excited about doing much of anything in investing after a off day yesterday and a weekend ahead. Semi-illiquid stocks will be even more illiquid today.

Interest rates are holding at 4.22% and there is no new economic news to motivate prices much up or down. The move lower in rates over the last week or so did finally give our portfolios a little boost–not giant, but at least prices were not falling. This little boost moved some of our portfolios to new all time highs (we don’t withdraw any money from investment accounts), but I have low expectations for the next few months–and 2025 will be a tough year trying to make my 7% hurdle—4-5% is likely easy, but 7%?

Well we have our eldest grand daughter with us today and my wife and her will do our holiday decorating–I am thankful that she will get me out of that task which is on the bottom of my list of favorite things to do.

Well lets get the day started–and coast into the weekend.

Happy Thanksgiving to All

I want to wish everyone who travels through the website a Happy Thanksgiving. !!

The older I get the more I realize how thankful I am for almost everything in my life.

In particular I am thankful for having relatively good health–its hard to enjoy life if your health is going ‘south’. I am thankful for my wife who is more concerned with my health than I am and sees to it that I don’t do too many foolish activities.

I am thankful for our 5 kids and their families. While we have some of the normal family trials and tribulations for the most part our kids and their families are good, productive members of society and we are proud of them all. The 9 grandchildren, who range in age from 2 months to 21 are all a joy to us and keep us plenty busy with all their activities.

I am thankful to have a roof over my head, food in the pantry and an income that allows us to live relatively comfortably. It hasn’t always been this way so I can appreciate not having to lay awake nights worrying how to pay the mortgage.

And I am really thankful to all our readers and contributors to this website. This website was never intended to be such a big ‘project’, but here we are 18 years later (8 since this site began and 10 before that on “The Yield Hunter’) just trucking right along. These websites would not have survived without the near perfect contributions of all the readers and commenters –the self policing of comments relative to politics.

With the above I am thankful for those that have ‘donated’ to the financial support of the site. While no one will get rich on a donation site, it is really helpful to have contributions which cover the operation of a 6,000 page site. Without the contributions just the normal costs of a large website would be unbearable for someone to withstand. So thanks to those generous folks.

I hope all of you have as many reasons as I do to be thankful–so Happy Thanksgiving!!

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. Today in particular is totally dead (of course it is Thanksgiving Eve).

ARMOUR Residential REIT, Inc. Announces December 2024 Dividend Rate Per Common Share

As Expected Merchants Bancorp Calls Their Fixed to Floating Preferred

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.