Mid Day Ramble

It looks like another day or relative calm in all of the income securities–the average share is near even on the day. Common stocks have taken kind of a wild ride thus far–up 300 and then down near 100. Guess common stocks need a good rumor of sorts to move one way or the other in a convincing way.

Today we have the AmTrust preferreds tumbling some more–down around a $1 on each of the issues. On the other hand the 2 baby bond issues of AmTrust are bouncing–makes some sense–and I think we probably has some readers who bought into the baby bonds looking for a quick bounce. We have some of the shippers falling further–Safe Bulkers SB-C preferred is off a buck to $19.87, while the Teekay Offshore Partners issues are are off from a few cents to $1. Tsakos Energy Navigation preferreds are falling as well.

Gainers in the preferred area include all of the Pennsylvania Real Estate Trust (PEI) preferred issues. The mall owner has been hammered hard and all of the issues are now trading in the 9.5% to 10% current yield area.

As we noted elsewhere the new fixed to floating rate issue from Citizens Financial Group is trading on the OTC Grey market and is around $25.20-$25.25. Temp ticker is CFGLL.

11 thoughts on “Mid Day Ramble”

  1. On CNBC, they just announced that the SEC has been shutdown due to government not being funded. Impacting IPO market. So the fact that we are still getting the SEC documents for preferred offerings is a gift.

  2. Thanks to all here discussing it I bought a small amount of AFSS @14.99 two days ago and flipped it @16.23 this morning for 8% profit. Nice. Almost like daytrading πŸ˜‰

    Although this is NOT why I am investing in income securities one can’t help taking a short term profit now and then, especially when there is such a huge knowledge base available here. Thanks again.

    1. mikeo, congrats on your excellent short term trade. I too sold all my AFSS at 16.05-16.11 to take profit and will look to buy back in under $15. I keep adding to AGNCB as there is a short call in a few months and if it’s not called I will keep getting 7.70%+ from a $9.4 billion market cap company that actual earned $840 million last year. Wishing you profitable investing, Nomad

    2. Mikeo you and Nomad did better than me. My funds wouldnt clear until this afternoon so I sold at $15.45 just to get out. Im a bit weak kneed here. On well, made slightly over a buck a share for two days also. Would have preferred selling over $16 also! πŸ™‚

      1. I need to build an MTB bank in MO to hold all my MTB- and MTB-C preferred certificates. Bought 15 more at 1012 today. Goes exD next week at $15.93 divi.

  3. I guess I should have loaded up on AFSS instead of just a measured prudent dive. Seems to be sitting in that plus 11% gain today. If it stays here I probably will ride it onto the bond desk. If it bounces another buck in next week, may sell prior to delistment.

    1. That company has more plot twists and villains than a James Bond movie. I profitably traded ASFT over the last few years having plenty of excitement, too much really. When I got out the last time I promised myself never again. I also have those pesky New Years resolution prohibitions. But if it got around $12…..

      1. P, it was exactly a year ago, I traded in these. I remember buying on the panic rout last January while I was in Mexico. I bought the preferreds and held a few days and flipped several dollars higher. The only time I have been in any AFSI related issues.

        1. I think many think the bonds are safe…

          Unfortunately… in going private, they themselves are the majority holder in a make shift company they created on the spot to get out of the public spotlight. Now they can continue their funny stuff without the public seeing it in quarterly statements. “The Evergreen Parent.” If it wasnt for the family that continues to get involved and doing the wrong things.. it might be a decent play. The only outsider is stone capital for what it is worth. But as long as i continue to see “Karfunkel-Zyskind Family” … it is another phrase for shyster. Everything they touch has problems.
          I am not a lawyer.. but I am guessing there might be differences between a public company going bankrupt vs a private company going bankrupt. What is to stop them from siphoning off funds in a private company, then go bankrupt in say 2 years? Now they have dispersed the cash out of the country

          1. Mr. Lucky, most think bonds are bonds…not…I suspect many have not read the prospectus of junior subordinated debt… There are things that can be done when an offer is presented on and amended by the majority vote holders of the issue. So little Mr. and Mrs. Coupon Clipper could be in for a surprise if something is approved to be amended as their say in the matter would be immaterial.

            1. Mr Lucky
              Maybe they will pay. But I agree if there is ANY possible way to avoid paying, these would be the perfect people to find it. If they haven’t already.

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