The temporary ticker for the new term preferred from Eagle Point Credit (ECC) will be ECCPP.
I am not seeing it ‘teed up’ on Fidelity or eTrade at this time (2 pm Central).
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4/23/2024
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I will pass on this preferred, already trading way above par. Not sure that this one is any safer than RCPPP, which I bought too early and still see unrealized loss. I became convinced by Tim’s pointing out the 200% coverage rule on the baby bonds. I am not sure that this applies to preferred stocks, one notch below the totem poll. I remember that OXCL common was NEVER for the faint hearted. Bought and sold with small loss several times, as the market action could be very choppy acting almost like many of Rida Morwa’s picks. OXCLP will be ex dividend tomorrow. The coupon is just 6.25% not great. Then this baby bond with almost no call risk, as it is the lowest baby bond yield, Nothing is cheap in this yield hungry world. A sure 6.2% seems to be safer than eREIT with pro forma yield anywhere from 4+ to 6.5% fo SBRA, improving balance sheet but in the presumably riskier sub sector, senior nursing, housing etc.
I must restrain from buying more WCC-A or any of the shipping preferreds which continue to rally, a little unsettling as I hear some huge spending on international climate change control waging against China. There is a limit on everything including climate change, which I like but do not believe that we or anyone else in Europe can find money to fund this huge project. No political intent intended. I am a Californian who does believe in climate change. If the B shares of HARROW health can be bought close to par, I would buy some.
Barron’s has a positive write up on CEF CLO’s, BDC’s, and McReits.. . including specifically, Eagle Point.
As contrarion indicators, that should give us all pause, lol. This is not unlike what I’ve heard from a top RE agent at the jersey Shore. “When the most unloved, unsellable listing all sell out (condos) that’s your sign (of a top)
FWIW
I was able to put in a limit order at Schwab.
Fidelity….not so much
For a company that cut its dividend by 60% on April 15th, 2020 I find all the interest in this somewhat perplexing. I find companies that cut their dividends a little like a cheating girlfriend that says “Oh don’t worry I won’t do that again”. LOL Ya right.
It’s more like a girlfriend who shares her paycheck with you and gives you less when she makes less. So she switches from a commission job to a steady pay job. “All I have to do is avoid bankruptcy.” It’s a preferred stock.
ECC to be avoided last year because it owns CLO’s. Now that the housing market is in an upswing that is arguably less of a risk, Until the next collapse.
With ECC you know there is always a collapse in your future. Need to either be agile or have a strong stomach.
I’m amazed at the level of interest in ECCPP. The rate is OK but I’m thinking that much of the interest stems from the term nature. Comments anyone?
Disclosure: I have and do own a good bit of several ECC debt/preferred issues. I would not touch the common right now.
Bob – that is exactly my interest, Term preferred and 6% or greater. The tug-a-war between credit risk vs. interest rate risk.
I get it. There are very few companies that issue term preferred. It’s a hot seller.
Agreed. Term Preferred at a relatively high coupon given today’s interest rates makes this more attractive than it should be. Also there is the Closed End Fund leverage restrictions that also make it more safe than the underlying common or its assets. The common will get massacred by share issuance to either restore the leverage restriction on the preferred or redeem the preferreds early.
Very few on this site would consider the common, just a few gunslingers.
As of 6:30 AM EST Sat, it can now at least be called up on eTrade.
Can also see on Fidelity – Sat 8:30 ET. no bid / ask but shows 360k of volume.
Can see on TD Ameritrade at $24.93 on volume of 254,700 shares. No Bid/Ask and that all trades were at $24.93.
Dow Jones published on June 11th at 9:30 pm ET a very interesting Barron’s article by Alexandria Scaggs entitled “Where to Find Yields of 7% or More.”
It’s worth reading and is food for thought.
Fidelity will take trades as of open. M-E states stock is restricted and not taking trades.