Headlines of Interest for Owners of Preferred Stock and Baby Bonds

8 thoughts on “Headlines of Interest for Owners of Preferred Stock and Baby Bonds”

1. I am going to say something here about SJIJ and Grid.
   He was always looking for a deal and income and trading to increase his capital. Even if he said he was going to hold, if he thought there was an offer too good to pass up he would sell and book his profit.
   This is not too different from others here who hold illiquid securities. If they get a good deal they sell.
   Grid is an expert at reading the financial reports of companies and their prospectuses.
   I have no idea what you purchased your holdings at. But looking at FINRA this has been trading between 14.00 to 15.00
   https://www.finra.org/finra-data/fixed-income/bond?cusip=838518207&bondType=CA
   I did not buy this before it went dark. But I did buy the bonds knowing I would hold to maturity about 7yrs out. These are 55yrs out. A lot can happen in that time.
   Of course it would be hard to replace the income.
   Maybe just tinder 1/2 your holdings?
   Anyway this is not advice. I just find I put something in writing it helps me think things out.

   Reply

   1. Charles,
      How does the debt yield compare to the preferred?

      Reply

      1. LT wish I had seen this before I logged out of my account. Without digging into my files since I bought them when my wife’s account was at T Rowe I show a transfer cost to FIDO of about 780.00 so been collecting about 6.2% on cost. I’ll let you estimate yield to maturity.
         I have a little bit of a risk streak, but on my wife’s account I am more conservative. In one of my accounts I own ESGR bonds
         On the risk side, I own ESGR and ESGRP

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         1. The debt is one of the best values out there, in my opinion so take it w a grain of salt.

            Jerrymac mentioned the cusip the other day, has been trading around $83 or ~8.25% YTM, but my sense is these bonds will be bid up soon given the tender.

            https://www.finra.org/finra-data/fixed-income/bond?symbol=SJI5156685&bondType=CA

            Reply

   2. Former ticker SJIJ tender option still not showing on my account @schwab
      Does anyone see the option to tender on their account(s)?

      Reply

      1. Eyeman, I called Schwab on Friday. They expect it to be available on Monday.

         Fun Fact(s):

         FPE (Pref ETF) owns 13.4% of the entire SJIJ float. They had it marked at 15.93 as of Friday. https://www.ftportfolios.com/Retail/Etf/EtfHoldings.aspx?Ticker=FPE

         PGX (pref ETF) owns 4.2% of SJIJ. They had it marked at 17.72 as of Friday.
         https://www.invesco.com/us/financial-products/etfs/holdings?audienceType=Investor&ticker=PGX

         The John Hancock Pref CEFs (HPS, HPI, HPF) own a combined 8.5%.

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   3. I will tender all of my 5.625% 2079.
      I also own the 5.02% 4/15/31 and will hold for now.
      Thank you.

      Reply

2. Grid, Are you tendering your South Jersey?
   Please place a cairn on the decision making trail.
   Thank you,
   And, Best to you!

   Reply