4 thoughts on “New Cowen Baby Bonds Now Trading”

  1. I bought COWNL today at $24.90; hope they move up to $25.50 or so. Arbitrage Trader published an article today and by his logic feels COWNZ is the better choice, slightly. Maybe so since -L matures 6 years later than -Z.

    1. Fidelity analysts are bullish on COWN. COWN looks like a similar small brokerage to RILY and LTS. Yield matters. I have placed orders to sell my RILYG, some small cap loss offset nicely with interests received. Will buy COWNL when the RILYG get sold (partially filled so far). I totally agree with Leonard, why gamble with the converts with lower yield for something which seems to lack free cash? Thank you Tim.

      1. JohnKcal–I like Cowen better than LTS or RILY as they are not messing around with trying to operate dissimilar businesses. Do a few things well–leave the rest alone is my thought.

        All of them can do ok in a good economy–but we will see the emperor has no clothes when the next soft economy hits.

        1. Tim, all 3 does depend on the economy.

          FYI my largest holding is almost 4,600 shares combined of SB-C and SB-D (Safe Bulkers, Inc. Preferred). A few years ago, upon the advice of one SA PRO writer service, I sold all my preferred shares of Navios Maritime after the dishonest CEO wanted to trash all the preferreds shares by soliciting votes to give up the rights of preferred shareholders including cumulative with just one seat to the company’s board of directors. The motion was defeated thanks to the great effort of Norm Roberts, who asked all SA fellow shareholders to vote against. NM shareholders still maintain the rights but the dividends continue to be suspended. At that time, Safe Bulkers actually has small amount of cash with lower total cap. Nonetheless, the two Greek brother owners with a minimum of 24% stake ownership, decided to bail out the Company by using their other private company’s money. They bought the new ships already ordered with the private company and leased it back to Safe Bulkers, Inc. One or more of SA analysts, without revealing their name would often asked the CEO to consider suspend the dividend of the preferreds. CEO always answered that people must remember that the name sake … (safe bulkers). The history of all the Earnings are all nicely stated with abbreviated versions in Company’s WEBSITE, http://www.safebulkers.com. They won the recommendation of Morgan Stanley and I went on buying more, neutralizing many of my mistakes on other bad investments, the bankrupt VNR-B upstream, BEPPB (Breitein if I recall) another upstream and LGCYO (reorganized but no more dividends). SB just paid their dividends. Potential risk: the health of the Greek brother owners and continued demand for commodities from China. Coupon dividend = 8% all QDI. I do have some low coupon SWANs, e.g. WFC preferreds of all vintages. Sold all Wells Fargo real estate taking profit. With rising rates, it has become more challenging for income investors.

          Thank you and wish you a pleasant and relaxing evening,
          John

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