This is a page where bonds can be discussed. I am thinking primarily $1,000 issues which are of interest to folks.
Like the other discussion pages posts will stay intact for a number of months.
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4/26/2024
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Just a small bond purchase for me today, but looks like an excellent long-term hold:
Black Hills Corp, rated Baa2/BBB+. Coupon rate of 6.15%, not callable until 2/15/2034. The issuance was for $450M, so there should be plenty of liquidity. CUSIP is 092113AW9. Vanguard has them this afternoon at 100.195 with a low minimum of two bonds. YTM is 6.123%
The bond was issued in September 2023 and the first interest payment is not until May 15, 2024, so the accrued interest will bring the initial cost up a little bit. This will be a great long-term holding for me in the fixed income portion of my retirement account.
I held Black Hills debt before so I am comfortable picking them up again. I like the relatively long duration on these. Thanks Lou for the heads up on this.
JPMORGAN CHASE 6%
04/29/2039 (Callable not for 2 years in April 2026)
48130CKK0
A-/A1
YTM/YTW = 6.05% (Selling under par)
Sorry to see it go. GEO is redeeming 36162JAC0 at $102 on 4/29/24. It was paying 10.5% and at redemption an extra 2%.
Me too! HY high risk has paid off the last couple of years. I am ahead more on CCC rated than IG. I know when to get off the merry go round before musical chairs begin. Will be more conservative now that economist are declaring we have a good economy. 🙂
Rida and crew are taking a second bow as Riley and others are surviving. There is now a HDO SWAG store if one wants to purchase. Ha
Bank of America Corp 6.05%
05/01/2029
CUSIP 06055JEG0
A-/A1
New issue selling par
JPMorgan Chase & Co. 6%
04/28/2034
CUSIP 48130CKC8
A-/A1
New issue selling par
I would rather buy an US govt agency bond than BOA bond since BOA is callable in 6 months like many of the agency bonds. Last week, 6.5% for FHLB also callable in 6 months.
SteveA – I hear you. I’m looking at this from more of an allocation/duration perspective. I have too many 20 year agencies already. Looking to get some spots much lower down on the ladder. At this point I really wanted to get a perpetual JPM security type at 6% or better, so that bond is perfectly timed.
JPM looks reasonable. Not callable for 2 years.
I was interested in the JPM issue as well but have paused. This is new issue that was priced at PAR over a week ago. My concern is has the recent uptick in rates this past week, is this issue still well priced. Since it’s not trading yet, it can adapt to the market until it trades.
(Q) Should i buy it at initial offer or wait for it to start trading?
Proto-
Did you check the secondary market to see what a 6% IG bank bond with 2 years to maturity is going for?
I’ve bought many new issue bank bonds at par. Usually, they immediately trade down, kind of annoying but I’m HTM so why should I care? I buy a bond because I like the coupon or CY. I try not to second guess myself.
Comparing two State Street variable $1000 perpetual, non-cumulative preferreds.
Series H, 857477BA0, now floating, 3mL+2.539%, adjust/calls 3/15, 6/15, 9/15, 12/15
Series I, 857477CH4, 6.7%, 5y yield + 2.613%, first reset/call 3/15/29
Series H pros: CY > 8% if bought at par; cons: call risk, rate cut risk
Series I pros: 6.7% for five years if bought at par; cons: lower yield now
rocks—I own a lot of the 6.7% STT-I issue at par. I like the yield protection for 5 years and the Baa1/BBB investment grade status. Also the qualified distribution because it’s a preferred stock and not a bond. If rates go higher, I will add to my position.
Those interested in international bonds. Mexico has election on June 2 and India counts votes on June 4. It is good to watch the market reactions to these events. May be a nice entry point.
PEMEX article states 2025 debt to be refinanced. https://www.bloomberg.com/news/articles/2024-04-20/mexico-s-frontrunner-sees-pemex-refinancing-debt-in-2025?accessToken=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJzb3VyY2UiOiJTdWJzY3JpYmVyR2lmdGVkQXJ0aWNsZSIsImlhdCI6MTcxMzYyMjA2NCwiZXhwIjoxNzE0MjI2ODY0LCJhcnRpY2xlSWQiOiJTQzdEV1pUMVVNMFcwMCIsImJjb25uZWN0SWQiOiJESU5NVldFNE81R1BPMDRCSFFGTUtKS0pUMUlMTklIRiJ9.KYTUfspYQZtni2hlJRLQiqRI6mPwNuOJGA_YPbkv0uY?sref=3yhq6DEX
Am considering purchase of European government bonds as forecast is for lower interest rates sooner than USA. I don’t have the skill to pick individual international bonds so looking at the Vanguard Total International Bond Index (BNDX) sans US.
I have always invested in US with international exposure through US conglomerates.
I hesitate as middle east oil impact on Europe can disrupt their economies.
So waiting.
The BNDX will capture any gains in Europe alongside India.
Any thoughts?
I like your pick alot, its been on my watchlist for awhile and ironically feel close to buying this myself.
I recently picked up WIP, more of inflation protected Bond fund. It’s worldwide but seems to have a decent amount spread out thru Europe.
If you decide to jump into BNDX more than likely I’ll be close behind you.
This is a follow up to a post from last Friday 4/12/24. Here is a list of all $1k face floating/variable interest rate Utility bonds and preferreds. I have focused on Utes since they seem to attract the most interest from III’ers. We all know there are many moving parts on variables including what the reference interest is, how was the change from Libor handled, what is the first date the interest can change, how often can it change, ad nauseum. . . .
BLACK BOX WARNING: This list does NOT include all of the data you MUST have before deciding to purchase any of these. You absolutely, positively, MUST spend more time to make sure you understand exactly how each issue is structured. Not to mention having to guess how the company will proceed, i.e. do you forecast it will be called and when.
Many on this list appear to be Fixed to Float issues that are still in their fixed phase. This is why their current coupon rates are relatively low. Of course the key to understand is when they start floating and on what base/margin
The data I have included is:
Company name
CUSIP
Current coupon yield, assumes price @ par
Current yield based on latest ask price, which presumably you can buy the issue at, although the minimum quantity might be up to $250, plus some are 144a’s
Base interest rate: SOFR, 3ML- 3 month LIBOR which means I did NOT trace how it has changed post Libor, ??= unknown, UST5= 5 year US Treasury
Margin above the base is NOT included because I am not happy with the quality of my data, although you can calculate it reasonably well based on the coupon yield.
Next call date or “continuous” which roughly means it can be called on ~ 30 day notice, i.e. it is past its first call date.
Maturity date if it is a bond, perpetual if it is a preferred which might NEVER be called
I did not attempt to make the data look pretty on this post, because it is let us say difficult. The data is setup for you to copy into a spreadsheet as a “CSV” file, then parse into columns. I will make subsequent posts with detailed instructions on how to import these to both Excel and/or Google Sheets. Don’t worry, anybody can easily do this, no PHD required.
The list is sorted by highest current yield
Header row
Name,CUSIP,Coupon yield, current yield, Interest base, Call status, Maturity date,Moodys,S&P
Southern California Edison Co,842400FU2,9.767,9.74,SOFR,Continous,Perpetual,BAA3,BB+
National Rural Utilities Cooperative Corp,637432MT9,8.489,8.49,SOFR,Continuos,4/30/43,A3,BBB
PPL Capital Funding Inc,69352PAC7,8.236,8.25,SOFR,Continous,3/30/67,BAA2,BBB
Edison International,281020AZ0,8.225,8.03,UST5,Uncallable,6/15/54,BAA3,BB+
NextEra Energy Capital Holdings Inc,302570AW6,7.631,7.97,3ML,Continous,10/1/66,BAA2,BBB
Edison International,281020AX5,8.125,7.87,UST5,Uncallable,6/15/53,BAA3,BB+
WEC Energy Group Inc,976657AH9,7.681,7.84,SOFR,Continous,5/15/67,BAA2,BBB
Sempra,816851BS7,7.5243,7.54,??,7/1/29,10/1/54,BAA3,BBB-
National Rural Utilities Cooperative Finance Corp,637432PB5,7.125,6.9,UST5,Uncallable,9/15/53,A3,BBB
Emera Inc,290876AD3,6.75,6.8,3ML,6/15/26,6/15/76,BA2,BB+
NextEra Energy Capital Holdings Inc,65339KCW8,6.7,6.71,??,6/1/29,9/1/54,BAA2,BBB
National Rural Utilities Cooperative Finance Corp,63743HFQ0,6.2179,6.17,SOFR,Uncallable,2/5/27,A2,A-
Georgia Power Co,373334KU4,6.0992,6.07,SOFR,Uncallable,5/8/25,BAA1,BBB+
National Rural Utilities Cooperative Finance Corp,63743HFL1,6.0482,6.03,SOFR,Uncallable,5/7/25,A2,A-
NextEra Energy Capital Holdings Inc,65339KCR9,6.0397,6,SOFR,Continuos,1/29/26,BAA1,BBB+
CenterPoint Energy Inc,15189TAZ0,5.9996,6,SOFR,Continuos,5/13/24,BAA2,BBB
NextEra Energy Capital Holdings Inc,65339KBK5,5.65,5.87,3ML,5/1/29,5/1/79,BAA2,BBB
Laclede Gas Co,84859DAB3,5.8534,5.84,SOFR,Continuos,12/2/24,A1,A
Dominion Energy Inc,25746UBY4,5.75,5.75,3ML,10/1/24,10/1/54,BAA3,BBB-
National Rural Utilities Cooperative Corp,63743HFA5,5.6851,5.68,SOFR,Uncallable,10/18/24,A2,A-
Mississippi Power Co,605417CC6,5.6563,5.66,SOFR,Uncallable,6/28/24,A3,BBB+
Edison International,281020AS6,5.375,5.57,UST5,3/15/26,Perpetual,BA1,BB+
Consumers Energy Co,210518DG8,5.4085,5.41,SOFR,9/15/49,9/15/69,A1,A
Algonquin Power & Utilities Corp,015857AH8,4.75,5.4,Reset,1/18/27,1/18/82,NR ,BB+
Florida Power & Light Co,341081GC5,5.3029,5.39,SOFR,3/1/51,3/1/71,A1,A
National Rural Utilities Cooperative Finance Corp,637432NK7,5.25,5.37,3ML,4/20/26,4/20/46,A3,BBB
Florida Power & Light Co,341081GJ0,5.2205,5.27,SOFR,6/15/52,6/15/72,A1,A
Edison International,281020AT4,5,5.27,Reset,Uncallable,Perpetual,BA1,BB+
CMS Energy Corp,125896BU3,4.75,5.23,??,3/1/30,6/1/50,BAA3,BBB-
NextEra Energy Capital Holdings Inc,65339KAV2,4.8,5.21,3ML,12/1/27,12/1/77,BAA2,BBB
Florida Power & Light Co,341081GS0,4.998,5.03,SOFR,6/20/53,6/20/73,A1,A
Sempra,816851BK4,4.875,4.98,??,10/15/25,Perpetual,BA1,BBB-
Duke Energy Corp,26441CBG9,4.875,4.91,UST5,Uncallable,Perpetual,BA1,BBB-
Dominion Energy Inc,25746UDD8,4.65,4.76,UST5,Uncallable,Perpetual,BA1,BBB-
Dominion Energy Inc,25746UDM8,4.35,4.66,UST5,Uncallable,Perpetual,BA1,BBB-
CMS Energy Corp,125896BV1,3.75,4.56,??,9/1/30,12/1/50,BAA3,BBB-
Sempra,816851BM0,4.125,4.47,UST5,Uncallable,4/1/52,BAA3,BBB-
American Electric Power Co Inc,025537AU5,3.875,4.29,Reset,Uncallable,2/15/62,BAA3,BBB-
Southern Co/The,842587DF1,4,4.17,??,10/15/25,1/15/51,BAA3,BBB-
NextEra Energy Capital Holdings Inc,65339KCB4,3.8,4.16,??,3/15/27,3/15/82,BAA2,BBB
Southern Co/The,842587DJ3,3.75,4.06,??,Uncallable,9/15/51,BAA3,BBB-
Duke Energy Corp,26441CBP9,3.25,3.66,Reset,1/15/27,1/15/82,BAA3,BBB-
Thanks Tex, these will be the only ones I would ever have interest in. Unwilling and unable to do spreadsheets and never will. But I cut and copied your info and pasted it into an email to myself. That is good enough for me!
How to import “CSV” data into an Excel spreadsheet:
1. Open Excel
2. Click on ”New Blank Workbook” if your Excel does not start with a blank worksheet
3. On my original post, left click starting at the Name, Cusip line going all the way to the bottom of the data. This should “highlight” all of the data
4. While the data is highlighted, click “Ctrl C” which is a shortcut for copying data
5. Go to the newly opened Excel spreadsheet and click “Ctrl V” which is a shortcut for pasting data. That should put all of the data from my post into a single column A, with rows from 1 through XX
6. The A column should still be highlighted, the click on “Data”, then “Text to columns”, “delimited”, check the “comma” click box, then “next”, then “Finish”
7. The data should all be in nicely separated rows and columns with the header row containing the descriptions.
8. You can save it with whatever name you like.
How to import “CSV” data into a ‘Google Sheet” which is their free version of Excel. Here is the process:
1. On your browser (Google Chrome, Firefox, etc.) open up a new tab and enter: https://docs.google.com/spreadsheets/
2. Click on “start a new spreadsheet” “Blank spreadsheet”
3. On my original post, left click starting at the Name, Cusip line going all the way to the bottom of the data. This should “highlight” all of the data
4. While the data is highlighted, click “Ctrl C” which is a shortcut for copying data
5. Go to the newly opened Google Sheet tab and click “Ctrl V” which is a shortcut for pasting data. That should put all of the data from my post into a single column A, with rows from 1 through XX
6. The A column should still be highlighted, the click on “Data” at the top which opens up a pulldown menu, select “ split text to columns”
7. The data should all be in nicely separated rows and columns with the header row containing the descriptions.
8. If you have a free Google account, you can save this into your own spreadsheet
Thanks Tex 2! These can be great for ROTH conversions if converted before reset.
Tex—thanks for this post. I own at lot of:
National Rural Utilities Cooperative Finance Corp, cusip # 637432PB5, 7.125% coupon, UST 5 year reset , Uncallable, 9/15/53 maturity date, A3,BBB
The 5 year T spread is 3.53%. Currently trading about $102.5 to $103
Whidbey, thanks for this extra info. More info about this particular issue, gleaned from the FWP at https://www.sec.gov/Archives/edgar/data/70502/000007050223000020/fwpsubordinatednotesmay2023.htm:
1. the first reset date is 15 sep 2028, so it’s still paying a coupon of 7.125%
2. Based on my reading of the FWP, it is in fact callable: “Optional Redemption: … The Company may, at its option, redeem the Notes in whole or from time to time in part, on any day during any Par Call Period at a redemption price in cash equal to 100% of the principal amount of Notes to be redeemed [plus, in each case, all accrued and unpaid interest on the Notes to be redeemed to, but excluding, such redemption date.]
– where ‘Par Call Period’ is defined as “With respect to any Reset Date, including the First Reset Date, the period from and including the June 15 immediately preceding such Reset Date through and including such Reset Date.”
– Meaning (again, if I understand correctly) that CFC has the option to call the notes from 15 jun 2028 to 15 sep 2028, inclusive.
Thank you Tex for a great list. Is there a way to identify which is preferred and which is a bond?
Hi MFZ, the third field from the right is “Maturity date.” It either has a date or says “Perpetual.” Perpetual means that it is a preferred without a fixed maturity date. If that field does have a date, it is some kind of bond. I do not recall seeing any “term preferreds” which would have a fixed maturity date, but it is possible.
Once again, it is vitally important to verify this data plus fill in all of the missing pieces BEFORE making a buy.
just an FYI.
these 7 are preferred stocks, so you get the lower tax rate for dividends.
842400FU2
281020AS6
281020AT4
816851BK4
26441CBG9
25746UDD8
25746UDM8
Ahhhhhhhh nuts! What section did you post your original list, Tex? I thought I’d earmarked it for myself, but alas I’m not finding it….. Doesn’t seem to be in this Bond Discussion area I don’t think.
2WR, my TVA friend, here is the verbatim original post from 4/12!
**********************************************
There has been some discussion about $1k face floating/variable interest rate bonds and preferreds. Here are a few that were offered for sale today 4/12. We all know there are many moving parts on variables including what the reference interest is, how was the change from Libor handled, what is the first date the interest can change, how often can it change, ad nauseum. . . .
BLACK BOX WARNING: This list does NOT include all of the data you MUST have before deciding to purchase any of these. You absolutely, positively, MUST spend more time to make sure you understand exactly how each issue is structured. Not to mention having to guess how the company will proceed, i.e. do you forecast it will be called and when.
The data I have included is:
Company name
CUSIP
Current coupon yield, assumes price @ par
Current yield based on latest ask price, which presumably you can buy the issue at, although the minimum quantity might be up to $250, plus some are 144a’s
Base interest rate: SOFR, 3ML- 3 month LIBOR which means I did NOT trace how it has changed post Libor, ??= unknown
Margin above the base is NOT included because I am not happy with the quality of my data, although you can calculate it reasonably well based on the coupon yield.
Next call date or “continuous” which roughly means it can be called on ~ 30 day notice, i.e. it is past its first call date.
Maturity date if it is a bond, perpetual if it is a preferred which might NEVER be called
I did not attempt to make the data look pretty on this post, because it is let us say difficult. The data is setup for you to copy into a spreadsheet as a “CSV” file, then parse into columns.
The list is sorted by highest current yield, so you should roughly assume the default/non-payment risk is highest at the top and decreases down the list.
Header row
Name,CUSIP,Coupon yield, current yield, Interest base, Call status, Maturity date,Moodys,S&P
AGFC Capital Trust I,00846NAA5,7.325,11.78,??,Continous,1/15/67,B1,B
Zions Bancorp NA,989701BF3,10.03,10.21,3ML,Continous,Perpetual,NR,BB+
Zions Bancorp NA,989701BD8,9.402,9.98,SOFR,Continous,Perpetual,NR,BB+
EnLink Midstream Partners LP,29336UAH0,9.701,9.75,SOFR,Continous,Perpetual,BA3,BB
Southern California Edison Co,842400FU2,9.767,9.74,SOFR,Continous,Perpetual,BAA3,BB+
Plains All American Pipeline LP,726503AE5,9.678,9.67,SOFR,Continous,Perpetual,BA2,BB+
Energy Transfer LP,29273VAH3,9.596,9.61,SOFR,Continous,Perpetual,BA2,BB+
First Citizens BancShares Inc/NC,31959XAA1,9.562,9.39,SOFR,1/4/27,Perpetual,BA1 ,NR
JPMorgan Chase & Co,46625HJQ4,9.348,9.35,SOFR,5/1/24,Perpetual,BAA2,BBB-
M&T Bank Corp,55261FAG9,9.178,9.14,3ML,5/15/24,Perpetual,BAA3,BB+
Citizens Financial Group Inc,174610AP0,8.566,9.11,3ML,,Perpetual,BAA3,BB+
Citigroup Inc,172967GR6,9.034,9,SOFR,5/15/24,Perpetual,BA1,BB+
JPMorgan Chase & Co,48126HAA8,8.868,8.87,3ML,5/1/24,Perpetual,BAA2,BBB-
Fifth Third Bancorp,316773CR9,8.692,8.86,SOFR,Continous,Perpetual,BAA3,BB+
Fifth Third Bancorp,316773CM0,8.596,8.84,SOFR,Continous,Perpetual,BAA3,BB+
JPMorgan Chase & Co,48124BAC9,8.818,8.82,SOFR,5/1/24,Perpetual,BAA2,BBB-
Bank of America Corp,060505ED2,8.734,8.7,3ML,Continous,Perpetual,BAA2,BBB-
TransCanada PipeLines Ltd,89352HAC3,7.778,8.64,SOFR,Continous,5/15/67,BAA3,BBB-
Huntington Bancshares Inc/OH,446150AL8,8.455,8.63,3ML,7/15/24,Perpetual,BAA3,BB+
Truist Financial Corp,89832QAB5,8.692,8.61,SOFR,6/15/24,Perpetual,NR,BBB-
Enterprise Products Operating LLC,29379VBM4,8.573,8.58,SOFR,Continous,8/16/77,BAA1,BBB
PNC Financial Services Group Inc/The,693475AM7,8.642,8.58,SOFR,6/1/24,Perpetual,BAA2,BBB-
Bank of Nova Scotia/The,064159KJ4,8.208,8.57,SOFR,7/12/24,Perpetual,BAA3,BBB-
Enterprise Products Operating LLC,29379VAN3,8.38,8.51,SOFR,Continous,6/1/67,BAA1,BBB
Allstate Corp/The,020002BB6,8.506,8.48,SOFR,Continous,8/15/53,BAA1,BBB-
Reinsurance Group of America Inc,759351AE9,8.255,8.47,SOFR,Continous,12/15/65,BAA3,BBB
Morgan Stanley,61745VAB9,8.75,8.45,SOFR,12/15/25,Perpetual,BAA3,BBB-
Goldman Sachs Group Inc/The,38148BAD0,8.436,8.42,SOFR,Continous,Perpetual,BA1,BB+
PPL Capital Funding Inc,69352PAC7,8.236,8.25,SOFR,Continous,3/30/67,BAA2,BBB
State Street Corp,857477BA0,8.129,8.11,SOFR,6/15/24,Perpetual,BAA1,BBB
USB Capital IX,91731KAA8,6.595,8.11,SOFR,Continous,Perpetual,BAA2,BBB
JPMorgan Chase & Co,48128BAD3,8.148,8.09,SOFR,5/1/24,Perpetual,BAA2,BBB-
NextEra Energy Capital Holdings Inc,302570AW6,7.631,7.97,3ML,Continous,10/1/66,BAA2,BBB
WEC Energy Group Inc,976657AH9,7.681,7.84,SOFR,Continous,5/15/67,BAA2,BBB
Goldman Sachs Capital IV,381427AA1,6.37,7.35,SOFR,6/1/24,Perpetual,BA1,BB+
BAC Capital Trust XIV,05518VAA3,5.99,7.19,SOFR,Continous,Perpetual,BAA2,BBB-
Mellon Capital IV,58551TAA5,6.159,7.18,SOFR,Continous,Perpetual,BAA1,BBB
Jpmorgan Chase Financial Co LLC,46646EX23,5.781,5.84,SOFR,Uncallable,11/3/45,A1,A-
Many thnx, Tex….
Just a FYI.
Some of those perpetuals issue K-1’s.
2wr,
In reference to importing Tex the 2nd’s list, I use an Ipad and I think you may also? I could not find a way to “split text into columns“ in the Google Sheets app on an iPad iOS.
If someone else knows definitively about this I would be happy to hear about it.
I’m a member of the Grid Generation – no Google Sheets, no spreadsheets of any kind. No Apple products either but I’m not sure that’s a Grid trait as well…. it’s hard to believe that even though I bot my first computer in 1981 (an IBM!) I’ve never used a spreadsheet. Go figure. Spread sheets remind me of calculus – the key is always setting up the equation correctly and it always seem to me to take longer to figure out how to do that than it did to think I could solve the problem another way….. Hey, maybe this is what I need AI for!
2WR, I love my iPad, but yes, I am pretty much done learning anything new. So there will be no spreadsheet made on my end.
2WR, important investing life lesson here for all of us. You can be in the investing Hall of Fame like 2WR, Grid and Warren Buffet WITHOUT having a Bloomberg Terminal and/or Excel spreadsheets. Something to think about. . .
Uh Oh, Tex! – You blew all your credibility with this bit of hyperbole but thanks anyway – I guess I can now go to bed and sleep well on my inflated ego and add Mike Lindell’s My Pillow (no politics intended) to the online auction ….. lol
2WR my bro is 7yrs younger than me. He built my first computer around the same time you got your first one. Tried taking computer programming 3 times but the classes were over crowded and the teachers assistants were more interested in helping the gals. I use a spread sheet at work, but I keep a template for what I do and no idea what all the tabs are for. The formulas remind me of RPN they were using on the first HP hand calculators my friends had in high school.
My mac computer has a built in spreadsheet program called “Numbers”. A simple copy and paste of the text gives delineated columns.
I don’t use Apple but if I did I would connect to Sheets on the internet with a browser instead of using the app.
Shout out and thanks for Dick, Tex2 and all for F-F information.!!! You certainly deserve more than a steak dinner. I plan on researching these issues and will post any I find. Looking for candidates to convert to ROTH and these are normally great.
A very gentle, gentle reminder to try and post in relevant topic headings. I usually check on $1K and Common sections frequently. Glad I didn’t miss these!
Earlier today, I bought a small position in 86800XAA6 from TFC for $76.72 (Series J).
It’s a floater. The dividend rate is the greater of 4.00% or [(3-month CME Term SOFR + 0.26161%) + 0.645%]. So my current yield on my cost is 8.1%.
https://ir.truist.com/preferred-stock
https://www.sec.gov/Archives/edgar/data/92230/000119312519308844/d841243dex31.htm
Is this a qualified dividend
Yes, if your broker pays it correctly, it will be a qualified dividend. (Some back office systems trip on these, so it is broker dependent whether they get it right or not)
Diamondback notes:
https://www.diamondbackenergy.com/static-files/95f18f71-ca23-41d0-9645-565d3994ffee
Wanda, just not enough difference in price with a CD or MMF to interest me. The floaters Dick’s been coming up with are more interesting.
A little bump in rate for new TDA Bond offering. Royal Bank of Canada, 20yr, 6%, A-rated, CUSIP 78014RXP0. Have been shying away from these latest TDA offers to try and get us to jump on some duration. I’m a sucker for Canadian banks. Putting this one in the ‘I’ll think about it pile’.
sorry forgot to mention, 2 yrs of call protection
I also like the CAN banks. They are a fortress. RBC has done nothing but go up ; even during the covid crisis it held steady. Personally, I like the common better than the debt on this. I
TNT, I am a fellow shareholder of RBC, for many years. Actually, I hold stock of all the Big 5 Canadian Banks. Just added to TD and BNS recently.
I bought a 5 year reset issue from CoBank today through the Schwab bond desk for just under par. It’s a 6.45% coupon through 10/1/27 and then it can be called or reset off the 5 year Treasury plus 3.487%. The CUSIP is 19075QAE2 and the issue is BBB+ rated by S&P.
https://www.cobank.com/corporate/news/2022/cobank-issues-400-million-of-preferred-stock
Dick—yesterday 3x Schwab quoted me a price for this issue which l accepted, but the market maker would not execute when Schwab went back to them. Today, I finally got a fill at $99.69. It was very frustrating, but that’s the way it goes when working with the Schwab bond desk. They will not take a firm order ahead of time.
That’s strange. That’s not typically how it has gone for me with these types of purchases. Occassionally there will be mishaps but overall it’s been relatively smooth.
I just added to a Stanley Black & Decker 5 year reset (CUSIP 854502AM3). It resets or will be called on 3/15/24. The yield to first call they quoted me was 18.3%.
https://www.sec.gov/Archives/edgar/data/93556/000119312520023095/d859870dfwp.htm
I don’t think I see anything that appealing that trades with a ticker symbol so hopefully the hassle of calling the bond desk pays off.
Hey Dick,
Tons of great ideas in your posts. Are you paying commissions when calling the trade desk? I can find this issue in Schwab (still says call the desk) and not at all in TD.
Yes, I believe there is a commission. I’m not sure how much exactly and might vary by bond. I think they’ll waive if you ask them. The phone number to Schwab fixed income is 877-906-4670.
I think that Stanley Black & Decker bond only looks more attractive now that rates have crept up. FINRA shows a last price of $87.36. I’m holding a full position.
Are the CoBank dividends qualified? Thanks
CKNQP’s distributions are qualified.
I just bought the FHLMC 6.25% new issue that settles on 3/28. Aaa/AA+
10 year maturity, but can be called quickly like almost all agency issues.
If it gets called quickly, I suspect that I can find an IG non-agency issue at an equivalent rate because I think credit spreads will widen even as (if) the Fed lowers short term rates. Who knows? Just my rationalization for buying it.
Still want some more bonds. But not in a hurry. Figured I would wait until after the Feds meet and see what the market reaction is. Bet it’s a big yawn.
But you never know. I can see them saying nothing yet on lower rates, still say cuts are in the cards, but if they are vague about it happening in June or July then I think might be some reaction with people taking bets off the table.
Exactly like people here have been talking about
If I was looking for a safe place to hide out for a year, I might buy this:
FHLB 3130B0C72 6.04%
call 3/7/25, maturity 3/7/44
trading at par
I’d rather have that than a highly-rated pfd/BB with a CY of 5.x% if I was worried about market turbulence. I’d sacrifice tradeability for yield and security.
solid investment there, thanks!!!
Another on FIDO…
FHLB 3133EP4T9 2034 6.07% for 5 bonds
My only reservation is that valuation/purchase values for Agencies are much weaker than T’s.
Tradeoff: Agencies 125 bps more than T’s
Two reasons:
– T non call
– Liquidity MUCH less for secondary Agencies
Gotta think about that on a 20 year maturity.
Can’t assume the Agency will be called.
Ffcb 3133EP5Y7 has the same yield and call date but 3/21/2039 maturity.
Thanks R2S – just what I was looking for. Was interested in a one year Treasury or CD. Most likely will be called on 3/7/25 but if not, it’ s all good!
I just purchased 020002BB6 from Allstate for just slightly over par. It currently floats off the 3 month plus 2.938%. I see ALL-B trading at $26.19 today so it could make sense to switch.
https://www.sec.gov/Archives/edgar/data/899051/000110465913059936/a13-14234_2fwp.htm
Which broker did you use? None of mine have this in inventory.
I called the Schwab fixed income group. The phone number is 877-906-4670.
Prospectus for Allstate bond
https://www.oblible.com/Prospectus/www.oblible.com__US020002BB69.pdf
Now that it’s floating, the ALL bond is similar in all respects except maturity to the 4.875% EPD bond 29379VBM4 mentioned here recently.
Prospectus for EPD bond
https://www.sec.gov/Archives/edgar/data/1061219/000119312517251526/d392278d424b5.htm
FIDO not offering
If you call Fidelity’s fixed income group (1-800-544-5372), they may be able to assist you with purchasing. You can start off the conversation by saying that you’re looking for help with purchasing a bond that is not in Fidelity’s inventory. They should be able to request pricing from one of their dealers and then get back to you on what they can find.
Question. Lately, fidelity claims I need to purchase a min of $50k face value to utilize their bond desk for offers not in inventory.
This seems a bit high, so wondering if others have a similar experience.
Maine,
I made the same request for information from Fidelity last week and received the same reply.
Not what I wanted to hear, were you calling the number Dick listed above? I am looking at rolling 10,000 into 1 company maybe 2.
Side note, I have noticed getting dinged small fees at Schwab same with T Rowe but they have been crediting the account back.
If one broker starts by doing incremental fees then they all will.
Another thought just occurred to me, I scanned the bond offers at Fido just like their website layout better than Schwab and haven’t seen anything that really called out to me. Maybe that’s why Fidelity is doing it. They make more money for one and they are nudgeing you to inventory to move it. The offerings have changed a lot in the last 6 months, I don’t see a lot of variety more REIT’s,BDC’s and a few international bonds. I was used to seeing utilities, pipelines and oil companies and banks seem to be scarcer now on what they offer
$50k is nuts. Schwab will let you buy in whatever increment you want. I’ve bought in smaller increments through Schwab before with no issues. I think my smallest might’ve been $5k. I’ve done this with Schwab many times too as I feel like I find better value in institutional issues lately…especially with variable rate issues.
I generally find Schwab’s fixed income people to be WAY better than Fidelity.
PLAINS ALL AMERN PIPELINE L P 6.70000% 05/15/2036 SR NT
1,000 $0.99 $986.75 acquired 2023-09-19, current value $1,042.55
Fidelity allowed me to buy 1 bond, so maybe things have changed.
Too bad , so sad I received notice my 2026 Callon Pete bonds will be called. I bought them almost exactly a year ago for 95 full call April 1st for 101.06
I was happy collecting the 6-1/2% for another 2yrs. B2 rated Now I have to go looking again.