Just 30 minutes ago Customers Bancorp (CUBI) announced a call of the 6.45% fixed to floating preferred (CUBI-E).
The issue has been floating for almost 5 years and holders got complacent–shares will open down 60-70 cents tomorrow as it closed today at $26.24. The dividend yield has been around 61 cents so that will be the dividend on the call date of 6/16/2025.
Well darn. That means F is probably next. Hope they can wait until at least next year, as I think my cost basis is $11 or $12. I already send enough hard-earned cash to .gov.
Oops, my basis is around $18. Was thinking of my ARGD.
Darn. I guess all good things come to an end. Glad I still have a bunch of F.
I wouldn’t have sold this issue at $26.23 to pocket a 2.4% premium. Had I done that previously I would have lost my position in a nice issue that’s yielding an above market rate of interest (for the risk IMO). With some of this one has to just accept the risk that the premium goes away, assuming one bought it at a reasonable price anyway.
When a high yield issue like this gets called one also has to be thankful for the return of principal!
Are you sure 2WR ? I have CUBI-PF in my account at 25.65
We may, at our option, redeem the Series F Preferred Stock (1) in whole or in part, from time to time, ON ANY DIVIDEND PAYMENT DATE on or after December 15, 2021 – https://www.sec.gov/Archives/edgar/data/1488813/000095015916000721/customers424b5.htm#SERIESF
The bid on CUBI-E right now = 25.62, a penny higher than you’ll receive at the call, so Mr. Market’s a little irrational at the moment, probably on both.
Keep in mind that this means the CUBI-F will be outstanding until at least 9/15 since it, like CUBI-E, can only be called on a dividend payment date.
I didn’t realize how high CUBI-F was trading…. last trade = 26.23.
F is 25.61 now – not > 26
typo on my part – I meant E