Midday “This and That”

The President gives a reasonably moderate talk to the nation and traders declare “party on”-seems kind of early to me to be celebrating, but what do I know?

With the S&P500 up about 7/10% interest rates have got on board and the 10 year treasury is up 3-4 basis point to 1.86%–probably heading to where we were a week ago before the middle east situation. The previous trading range on the 10 year was 1.87% to 1.94%.

Ptrader noted earlier today that Saratoga Investment (SAR) is calling the balance of their 6.75% baby bonds (SAB) on 2/7/2020. They had called most of the issue on 12/21 and now just 2 weeks later call the balance of just under 1 million shares (bonds). Looks like holders are going to take a 2% hit (more or less) on their holdings as shares last traded at $25.62.

The call notice is here.

Todays overnight repo by the Fed was a non event. Primary dealers submitted $47 billion in offers and the Fed accepted all of the securities offered.

The new METLIFE 4.75% perpetual is now trading and is pricing around $25.03 right now after opening the morning in the $24.96 area. The issue is trading OTC Grey market under ticker METFL.

I have noted some readers have bought some of the new issue of Southern Company 4.95% Jr Subordinated Notes. I assume they are buying off the bond desk as I see no OTC trading. This is a tricky one as there was a OTC Grey market ticker assigned, but later withdrawn. For those interested you might want to call the bond desk with the CUSIP.

13 thoughts on “Midday “This and That””

  1. Just for laughs, I put in a GTC sell order on Conn Light CNTHP couple of weeks ago at 63.20 — dare the mkt to take it. And today it did, 30 cents higher. Not complaining, quite a cap gain for me, but where do I put it? Laugh, cry, scratch head . . .

    1. Earlier today, someone bought 300 shares of ALPVN for $110 each which gets them a 4.18% and 5.57% over redemption price. I feel like that’s the dumbest thing I’ve seen in a while.

      1. Tex, 2 weeks ago I had someone willing to buy from me a 100 shares of CNIGO at $33. It is a term dated issue in 9/23. It will pay less than $6 in dividends before it matures at $25. That is a guaranteed loser holding until maturity for that poor soul.

  2. Every divy/interest payment are good opportunities to stay in 5%+, investment grade, past call, well within 1 payment. Im 95% invested, and it is good to keep cash at work generating more cash.

    I wont buy the new sub issues. I stick with the tried, existing, past call as they have a history.

    1. Mr. Lucky–that is where I have been, but now have too much cash and will be joining you to a larger extent.

  3. Sold 700 shares of GOODN @ 26.65… I just don’t understand the run up in some of these issues and I’m taking the cash and will try to be patient.

    1. mrinprophet–I don’t under stand the GOOD issues at all–never have understand the strong trading pattern in these particular REIT preferreds.

      By the way you are doing a lot of selling lately I note–suspect your cash pile is building.

      1. I think David Gladstone has groupies… and they’ll invest in the name across all platforms. I’m hoping for a pullback soon. Yes… lots of cash.. more than I’ve had in a long time. MINT is my parking spot for now.

        Wanting to see red numbers on my screen every morning is starting to wear on me. 🙂

        1. mrinprophet–I guess I am probably one of those groupies–have owned everything exceept GOOD.

    2. I sold goodn and wbs-f today. i am starting to wonder if i am doing the right thing as my cash pile is now over 20%.

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