Mid Day Movements

Big abnormal preferred stock volume leaders (over 5 times daily average volume)  today come from Southern California Gas (SOCGP), KIMCO (KIM-M), Spirit Realty (SRC-A) and TCF Financial (TCF-D).  There has been only modest up and down movements in the share prices–so no big dumps.

We can follow this data on the High Volume page for preferred stocks.

The big losers today at midday are Pacific Gas and Electric (PCG-G) and investment grade low coupon issue First Republic Bank (FRC-F) as well as Iberia Bank (IBKCO) all with losses of over 75 cents.  Another issue of note is the Sotherly Hotels 8% issue (SOHOB) trading off 56 cents for a current yield of 8.06%.

We follow the current share price loss leaders here.

19 thoughts on “Mid Day Movements”

  1. Tim, You had mentioned some time ago you might be looking at the KIM pfds. Might want to zero in on KIM-I. Picked up a starter sample late today. This BBB- is trading past call/below par. There was already a partial call of the issue in Sept 2017. Appears company has been on a debt-reduction program based on the dates of calls of other pfds – from most expensive down, and the “I” issue is their most expensive outstanding pfd debt so good chance will be the first to be retired. Per my calcs and based on today’s close near 24, if it’s called by Oct 15, 2020, or sooner the the YTC would be at least 9.21%. Also picked a small slug of unrated 6.25% coupon AXO (formerly BOFIL) today a penny over par. Company is growing, financials look good – at least to me. It’s non QDI debt with early 2026 maturity. Best to all.

    1. Alpha – I noticed some really heavy volume in some KIM preferreds the last few days–maybe the funds are moving into it.

    2. I too have been looking to pick up some KIM preferred. I had my eye on the KIM-I for the reasons you site and also the KIM-K issue. Pulled the trigger on 400 of the KIM-I issue this morning for $23.95.

      1. Retired, If it’s called anytime in the next few years we’ll instantly wish we’d have bought more. Lol It’s quite a bonus for an IG issue.

  2. Nustar Logistics Fixed to Floating Subordinate Notes (NSS) closed at 24.92 down 0.28 today. Anyone have insight into why its drooping below par going into ex-dividend date on 12/28?

    1. Citadel, I think market is coming to grips that it isnt being redeemed anytime soon. I own it myself, but it is a glorified preferred stock. NSS has been breaking the par buck off and on past few days. NSS gets a bit of a pass having the debt label on it, and past call which is why I own it. But if push comes to shove with NS, this thing will ultimatley tank with the preferreds. But you will get some breathing room to sell inbetween. If preferreds sink harder I will look seriously to exit NSS.

      1. Thanks Grid…overall NSS has held up remarkably well, off less than 1% on the year and paying a 9.3% floating rate going forward. I’m just surprised the market hasn’t placed more value on those attributes. If I didn’t already have a full position in it, I’d buy more.

        1. NSS has dropped for the same reasons NS.A and NS.C and many others in the energy patch have dropped – the blood in the oil pits. Shippers are down, E&P companies are down, midstreamers are down, etc. Until oil stabilizes, the volatility continues. JMHO.

          I’m keeping all of my NSS – no doubt.

        2. Citadel, I am a bit conservative so take that in consideration, but all isnt as it appears here with NS. Scratch a line through debt and put preferred in with NSS. We get the trading price premium and that is it. It they run into a credit issue, this one goes under right with preferreds. Preferreds get suspended and likely NSS gets suspended also. When 5 year deferral is up there will be so much bank secured and senior secured stuffed in front of it, it would be as worthless as the preferred. They have little credit capacity the way it is.. Thus the ridiculous usury preferred yields issued.

  3. Tim,
    TNP-D is listed 2nd on the list. Yesterday’s close was $21.30 and today’s close was $20.96. That’s only $0.34, but the grid shows more than 90 cents loss.

    Any idea on the discrepancy?

    1. Hi G–yes I see that-it looks like it didn’t pick up the last trades of the day. I will look through things tonight and see it there is an glitch somewhere–I looked at the formula on all the TNP issues and the formulas etc are correct.

      Thanks for the heads up.

    2. Hi George–I was just sitting here looking at the issue and this one and 1 other changed as I was looking at the screen. My suspicion is that there are some trades etc still trickling into Google. I know there are always small differences in quotes everywhere I look–usually a couple pennies–not 50 cents.

      I am going to watch it through evening and see what it does.

  4. When I get some time, I will be looking at some spreadsheet analysis. I want to see if it makes sense to invest a portion in low price volatility preferred stocks similar to SP500 low volatility funds. Of course, those funds became popular so that ruined underlying concept. I suspect, I will find low price volatility tied to issues that don’t trade often.

    If I spot something different, will post those issues

    1. SteveA–when you have a chance you can compare the 2 portfolios in the ‘portfolio’ tab.

      For this year the Medium Duration Income Portfolio has vastly outperformed the High Income Portfolio. The Medium Duration Portfolio is a very low volatility portfolio and is how I have been invested for a few years (just moving into some higher yields recently).

      1. I have actually dome some preliminary research the firms in the medium duration portfolio. I did a switch some from my ban loan mutual fund FFRHX (before I moved it to money market) to ECCA. The underlying CEF and mutual fund have not done well recently.

        ECCA has been nice and stable (I am almost afraid to jinx it). I have my eye on Gladstone and Sotherly issues also. Also considering your Cash option recommendation kayne at 3.5%

        This is a great source, I also encourage everybody to look at it

        1. The other issues I am looking at is what I am targeting to replace my remaining 5.6% issues from Metlife, Allstate and Prudential. These will also provide some additional coupon benefit.

          My gamble is these investment grade issues will rise if we get Fed to say they are moving to neutral and give me a better exit point of these issues. If they don’t, that’s my risk

  5. Geez, all the Maiden and AFSI issues were UP big today. Were they being pumped over at SA?

  6. AHL-C is an issue I follow closely. It’s taken a real beating over the last 3 month, much more than any change in market conditions would suggest.

    Aspen has agreed to be acquired by Apollo but that, to me, is a positive. AHL-C becomes an obligation of an Apollo sub. I have trouble believing Apollo would look to defease the preferred but that looks to be how the market is pricing it.

    Anyone have insights?

    1. Bob, I owned it a couple times for flips. Then a couple weeks ago I bought in again to flip a modest purchase at $24.80. Then it started bouncing wildly from $24.20 range to $24.90. I watched it sink back below purchase price and sold at $24.70. Glad I did, lol. Aware of present situation as mentioned. This just could be an example of ….It takes a lot of price movement to raise yield to current market expectations. There are now several QDI preferreds of similar quality that are in the present 6.3% range.

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