First Republic Bank (FRC) has announced they will be selling a new issue of perpetual preferred stock.
The company press release can be found here. Recall that FRC is regulated by the FDIC and does not make SEC filings–thus data is always slow coming out.
The banker has a number of preferred issues outstanding which can be seen here.
EarlyBird was on top of this one and posits yield talk in the 4.50% area.
Tim – your FRC list is missing the 4% FRC Series M – which is getting crushed.
Thanks!
Thanks Rob–will get it.
I saw 650 mmm raised
Guys is there any update on the nominal?
A 4.50% coupon will mark a significant change to BAC-Q and MS-O
It is probably time to slowly start cleaning house of anything that is 4.25% and lower. Anytime I see a reasonable bid I have been letting some go. Many just had ex-div pass a short while ago so the bids are even lower then what you think it would be. It is alright to lose a few pennies per share because it will only get worse over time. If you attempt to make money or break even we might become very disappointed. That is the advice I give to myself. Still plenty of time to make changes. A dime here or there is not a big deal. A buck starts to hurt. Pretty amazing what happened to FRC-M like another poster said above. It had a nice bounce 10 days ago which appears to have been a gift to get out.
E.G.,
I agree — the 4.50% pricing is a seminal event, as clearly evidenced by the recent significant price declines associated with the previously issued FRC preferred stocks. Tim recently shared with us some helpful ideas concerning the importance of considering duration risk at this particular time.
That said, my inventory does include two perpetual preferred stocks — this new FRC 4.50% and the recent Enterprise Financial 5.00%. I did both on the offering, and both are in weak hands.