Category: Portfolio

While I haven’t done a darned thing, but watch today, I made a couple modest purchases late last week.

I initiated a position in the Saratoga Investment (SAR) 8.125% baby bonds (SAY) at a price of $25.20. Honestly I could have bought pretty much any of the Saratoga issues as they are all pretty equal–I already have a position in the 8.50% SAZ issue.

Additionally I added to my position in the Raymond James Financial 6.375% fixed to floating preferred (RJF-B) @ $25.30. I paid a bit of a premium, but most is accrued dividends. This issue is likely to be called 7/1/2026 so there is over a year before that possible occurrence.

This continues my quest to safely raise my portfolio income. Of course we all have our own definitions of ‘safe’, but these fit my definition–minimal volatility and at least 2% above the prevailing CD or money market rate.

We go through this every time there is a FOMC meeting–markets kind of tread water just waiting to hear what we mostly already know. Then we can dissect every word that Jay Powell speaks and come to a conclusion (and we all come up with different conclusions).

Today I believe there will be no change in interest rates (the Fed Funds) simply because employment is holding up and because most of the Fed folks believe that tariffs are highly likely inflationary and we will see the effects of them starting right now.

While everyone is sitting around speculating on the Fed I made a buy this morning. I added to my position in the WR Berkley 5.70% baby bonds (WRB-E)–I already had a position (modest in size). WRB is a super safe and very well run insurance company and while I tend not to buy baby bonds with maturities way out in the future (in this case 2058) the combination of safety and a dent 6.53% current yield makes it a good long term hold–with a chance of capital gains in the months ahead.

I continue to have cash available to move ever so slowly into solid (in my mind) shares with yields above 6% or so to move my overall portfolio yield higher.

I have added the 8.25% FTAI Aviation fixed rate reset preferred (FTAIN) issue to the hiding spot list.

The issue trades at 8.25% until 6/15/2026 after which it resets to the 5 Year Treasury plus a giant spread of 7.378%.

The company has had 2 other fixed to floating issues outstanding that they have called with coupons below this particular issue and almost without doubt they will call this one in 13 months. With this date approaching in theory shares should trade in the $25 area during the next 4 quarters.

Note that the shares are trading at $25.05-25.24 this morning – BUT shares go ex-dividend on 5/12/2025 for 51.6 cents. There shares trade very thin—very thin so patience is required.

The company released earnings a couple days ago and they were very solid. Potential investors need to do their due diligence on this issue and ensure a comfort level with their business. The company owns and leases jet engines for commercial aircraft which has historically been a very good business. Obviously in recessionary times with reduced travel there could be bumpy roads–and with the current economic outlook we might enter one of these times soon–who knows for sure.

Somehow I bought 100 shares this morning at $25.05 – I had limits at 25.10, then 25.20 and finally I acquiesed to the seller and went $25.24 and lo and behold it executed at 25.05–a gift I guess. This is one I will likely add more shares of when I gain a little comfort. I don’t expect any capital gains to be available in the next year—just $25 plus accrued dividends.

I chose to add an issues off the ‘hiding place’ list this morning–it went ex dividend today so was marked down to a good price for me. Of course I should have bought yesterday when 2whiteroses and others mentioned it in comments–it was trading at $25.22 or so — I would have been ahead 7-8 cents by capturing the dividend.

I bought the Wesbanco 6.75% fixed rate reset perpetual preferred (WSBCP) at $24.88/share. There is a high likelihood that the issue will be called 11/15/2025 as it resets at the 5 year treasury plus a spread of 6.557%.

Once again this is just part of my long drawn out process of raising my overall portfolio yield—slowly, but safely. Thus far my portfolio is performing about as I expected–moving slowly higher.

Closed end fund Gabelli Global Utilities and Income Fund (GLU) has added a bunch of ‘put’ dates to their 5.2% perpetual puttable preferred (GLU-B).

What this means is that during a 60 day period every 6 months during the next 2.5 years shares can be ‘put’ back to the CEF @ $50 plus the accrued dividend.

This fund has had many changes in coupon over the last 6 years or so, but it is now fixed at 5.20% and shares are trading at $50.25.

I posted this in the ‘headlines’ last night so if you read those you are already aware of this item.

I bought 100 shares just a minute ago at $50.30. Shares will be held for at least 18 months–maybe longer depending on interest rates. After the final ‘put’ date the issue turns into a perpetual with a 5.2% coupon. If interest rates are higher then the share price will likely drop as we no longer have the ‘put’ to hold the share price up. Right now it is a fairly meager coupon, but combined with the safety it is better than CDs and money markets.

2wr and others have mentioned this is the comments today.

NOTE–mother Fidelity is limiting buy orders to tiny quantities–I had to execute on eTrade.