Bank and wealth management company First Republic Bank (FRC) has announced a new issue of preferred stock.
Issue will be investment grade, non-cumulative and qualified.
The company has stated it may use the proceeds to call all or a portion on the 5.50% non-cumulative FRC-G issue which becomes redeemable on 3/31/2021.
The company press release on the issue can be read here.
Yield talk is in the 4.375% area.
EarlyBird was early on this one.
Mr Conservative…..I know the feeling….I used to think the OTC was my private playground.
But assuming “remembering” isn’t against the law yet….we’re going on 13 years of a Fed funds rate that has ranged between nothing and almost nothing and limitless “quantitative easing” ( which I think would be a great name for a laxative)
So to hang back for what I think is never going to come, i.e. normalcy may be a long frustrating wait. It’s the New Abnormal in so many ways.
Priced @ 4.25
done deal
FRC has an outstanding 4.125 preferred trading at a premium. The broker indicated to me that NEWTZ would come at 5.5%, when the market suggested 5.25%. I did some and it was a great flip. The broker is indicating 4.375 on this issue, and it seems as if 4.125 or higher can’t be bad. Am I missing anything?
I’ve accepted this as the new normal. In my wife’s account, I just sold her 5.2% TFCprG ( was going to be called Monday) for $25.30 and replaced it with 4% USBML at $24.70. When trading in my wife’s account, safety is job # 1.
Being early, fast, and get OTC preferreds is not what it used to be. 🙂
I hope this is not the new normal.
For now, I have not been buying anything new for months sub 5% unless it has been out for 20+ years. If rates do go up, I dont want to get stuck owning them permanently. Pinned to par with past call, or potential call in short term, mandatory call are mainly for me with higher divies/interest.
Mr Conservative isn’t conservative.
Your right. I’m more conservative. At 72 I don’t buy long bonds or green bananas anymore 🙂
@Bill S.
I’ve in your bracket-plus. I use Absorbine Senior and eat Senior mints.
Went to the doctor the other day for a checkup. I asked him how I was doing. He replied, “Don’t start any long novels.”
Bitta bim-bitta boom
@Ron Ramsay:
I can’t top those ! You win.
Martin, I personally think there is a lot of it in that method. As best as one can control the variables of a perpetual issue anyways.
Mr Conservative, check out CoreCivic 5% 10/15/22 are trading around $97.00 with nearly a 7% YTW. Biden and company want to end private prisons, but that is more than priced in. Plenty of cash flow, and a stable BB rating from S&P makes me comfortable for the next 20 months.
Thx Chris
Too many people found this website, so everybody knows to flip the temporary tickers on OTC now. Hard to get a good price.