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Laying the Wood to Preferreds Again

Well there are certainly plenty of ‘nervous nellies’ out there as pricing on preferred stock and baby bonds got hammered once again. There were over 50 issues off by 2% or more today–yikes.

To look at the good side of things there are some solid issues being sold down–maybe being sold down below where they will be in a month. Prices are moving on anticipated rate increases and I think it is likely that some may move higher as the sell off becomes exaggerated.

This link gives you a alpha list of preferred stocks which you can toggle to sort by ‘losers’–a long list today. Issues I mentioned over the weekend moved further into my target zone and it is very likely I will take a small nibble this week of a number of issues.

19 thoughts on “Laying the Wood to Preferreds Again”

  1. Jeff, I highlighted the table (mouse +shift), opened new Excel sheet, right clicked and pasted as “keep source format”
    Hope this helps

  2. Well, the big preferred ETF PFF ($18 Billion) had another $100 million in outflows on Monday. Likely the largest outflow day in 2022.

    When I closely followed PFF years ago they always seemed to have $300 – $400 million of cash in their fund, but for months now it has sat at only 17 basis points – which equates to only about $30+ million. Clearly not enough to meet these daily outflows, so they must sell some of their holdings.

    I noticed many of the investment grade preferreds seem to get carpet-bombed hard in the mid-morning and then near the close. This is likely the big preferred ETFs doing their thing (price-insensitive selling).

  3. Hi Mr Tim

    I have two problems with the link results posted today.

    #1) The display opens up with a date of 1/2/2022.
    I have cleared my cache and tried using both
    Firefox and Chrome. The result is the same,
    the wrong date.

    #2) It was my understanding that this display is
    supposed to be available under the drop down
    from PREFERRED along the top menu, but it
    never displays on my computer, no matter what
    size font I use ( large or small print ).

    Any help would be appreciated

    Thanks,
    Howard

    1. Hi Howard–I removed that date–it is just when I did some updating–no info from that date. If you click on preferreds it will bring you to the page with all preferred links. I will add it to the dropdown.

  4. Early Bird, Early Bird, wherefore art thou Early Bird?
    I’m ready to flip some newly issued Too Big To Fail bank preferred stock at 5.50%.

  5. QVCC is a 6.25% senior note trading at 22.05 with a 2068 maturity.
    QVCD is a 6.375% senior note trading at 23.56 with a 2067 maturity.

    If you owned QVCD- would it make sense to sell it and buy QVCC with the proceeds given it is a $1.50 cheaper? Why is there such a disconnect in the price?

      1. mike D. I am new to all of this…I am so impressed with the knowledge on this forum sometimes I do not understand the words I am reading…QVCC &D…I can not find anything about what these funds do…TD Ameritrade tells me not much. Any help would be great…

        1. A simple place to start is Yohoo Finance. Type in the ticket symbol i.e. QVCC and see what they have to say. Also quantumonline.com for bonds and preferred stock. Investopedia is a good place for definitions of terms. Don’t invest in anything you don’t understand.

      2. This is the kind of anomaly that occurs in times like this. Even giving zero weight to the additional QVCC call protection, it should be only about 40 cents less than QVCD.

      3. This is the kind of anomaly that happens in times like this. Even giving zero weight to the additional QVCC call protection, it should be only about 40 cents less than QVCD.

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