Category: General Commentary

Once again I am upping my overall portfolio yield–by a small amount by doubling my small position in the Wesbanco 6.75% fixed rate reset preferred (WSBCP).

I bought this position at $25.01 yesterday. I had initiated the position on 5/1/2025 with a buy at $24.88 – it had just gone ex dividend by around 42 cents.

This issue is off the hiding spots list and it is almost a certainty to be called for redemption on 11/15/2025 as it has a reset at the 5 year treasury plus a spread of 6.557%. So all I can count on is 2 dividend payments.

I forgot to enter the initial buy on the laundry list of holdings on 5/1/2025, but I did write that I had bought it. I have now updated the list with both buys.

Banker Wintrust Financial (WTFC) has announced they will be selling a new issue of fixed rate reset (reset after 5 years and then every 5 years thereafter at the 5 year treasury and a fixed spread) preferred issue.

The use of proceeds are as expected–

We intend to use the net proceeds from this offering for general corporate purposes, which may include the redemption of all or a portion of our outstanding shares of Series D preferred stock and/or Series E preferred stock and the corresponding depositary shares representing interests in the Series E preferred stock, subject to approval from the Federal Reserve. Pending such use, the net proceeds may be invested in cash or short-term marketable securities.

Note that I have both of these issues on the ‘hiding spots’ list for potential calls on 7/15/2025—so it looks like we won’t get any extra high dividends when the shares are ‘reset’ (because they won’t reach the reset date). Oh well will have to find new hiding spots after 7/15/2025.

The preliminary prospectus on the new issue can be read here.

Thanks to J for catching this one.

Today we got the ‘official’ jobs report which showed that we added 177,000 new jobs in April. Are government layoffs and tariff related jobs getting creamed? Nope – at least not yet. Predict the future at your own risk.

I was thinking this morning about all the nervous nellies who have already sold everything and buried the money in a mayonnaise jar in the backyard–every time we have some big market down days and lots of uncertainty we lose investors to the all cash scenario–this is almost always a mistake. The exception to this scenario this time is we do have alternatives in CDs and money markets which at least are paying a 4%-4.25% rate–certainly much better than the ZERO we were being paid for years and years.

Lots and lots of uncertainty ahead for sure, but today I think I will be adding at least 1 issue to the hiding spot list–1 for sure will be a hiding spot with a high yield–over 8%. Like always I like to eat my own cooking and will likely initiate a new position in this issue. This issue will be a bit riskier but as they say ‘no risk no reward’.

News doesn’t get much bigger than it did earlier today when we had a gaggle of economic news.

GDP was released at -.3%. Its been a long time (about 3 years) since we have had to look at a negative number. Forecasts were modest at a +.4%, so the number wasn’t a total disaster, but it doesn’t bode well for the next few quarters as we look at potential for severe tariff disruptions.

ADP came in with a really soft employment number at 62,000 jobs added—about 1/2 of what the forecast was at 120,000. Of course we have the ‘official’ government employment report on Friday so we will see where that takes us.

Then we had the personal consumption expenditures (PCE) release which was more or less around forecast–although inflation was down a bit–prior to the effects of tariffs which we will see what happens there very shortly.

The 10 year treasury is barely moving and trading around 4.17%—preferreds and baby bonds are off a tiny bit as the soft equity markets get drug lower, although well off the bottom from an hour ago.

Yesterday I started a position in the Gabelli Global Utilities Puttable Preferred (GLU-B). This is a $50/share issue. I bought just 100 shares to start with and then added 25 shares at Fidelity–which at that moment was the maximum Fidelity was allowing (mother Fidelity-always watching out for us). When I get more cash I may add to this very conservative position.