Below is the chart with all of the new issues that have been sold since 12/11/2020 (nothing special about this date–just when I started tracking them). I do not cover ‘equity units’ on this website.
The new baby bond from Gladstone Investment (GAIN) is the only issue not trading at this time.
It is interesting to note that the low coupon, quality issues, are mostly at or below $25. Non rated issues are trading stronger. The Newtek Business Systems (NEWT) 5.50% baby bond is trading very strongly at $26.34, while the Wells Fargo 4.375% perpetual (WFC-C) trading weakly at $24.54.
Please note that the 10% Babcock & Wilcox baby bond (BWSN) is trading strong at $25.67. A cautionary note on this issue–they have been off and on operating under ‘going concern’ statements–i.e. there are doubts to their ability to continue in business. In somewhat of a ‘sweetheart’ deal B Riley has bailed them out recently–but this company is dicey–use care and do very deep due diligence.
Hi Tim,
Are you still holding your TDSUP shares and do you still feel ok with their financials?
All the Best,
Bill
Hi Bill–no I am not–not certain when I held it or sold it. Anyway I am comfortable with their financials–they will never show big net income–but their balance sheet is fairly solid. I think I will look at the UScellular baby bonds–they are 83% owned by TDS and being bonds I would be 1 step up the capital ladder compared to the TDS preferreds.
I love looking at the recent issues data set. Hope this is a recurring feature going forward.
Tim.. Thanks .. rebuying some.. wafdp………etc.. lower then .first time..Ty.
Hi Tim; I bought some TDSUP yesterday right at $25.01. I read thru their prospectus as well as their most recent quarterly report. They have positives & negatives. I like the fact that they own over 4,000+ cell towers along with having 4.9 million customers. I believe you said you bought some as well. I’ve noticed that they are spending a fair amount of money advertising on TV here in Omaha as I have seen no less than 4 or 5 commercials on U S Cellular just yesterday alone. They are saying they have the 5G and its “No Extra Charge” with them. Are you pretty comfortable with them??? The biggest problem that all of us are going to be facing down the road is many of our really good issues being “Called Away” from us. So if you are like myself you have to “constantly” be looking.
Yes Chuck P–I bought some of the new preferred and I hold 1 of the baby bonds and 1 of the US Cellular baby bonds–I’m comfortable with them and I like the cell sites which are an undervalued asset I believe.
THANK YOU TIM; I do appreciate your reply. Have a great day.
I looked at Brookfield preferred B[BIP-B] and was unable to determine if it was suitable for retirment accounts bedcause of UBIT.
I’m sure some readers know about this for US holders.
Thanks
BIP-B will not generate any UBTI. Nor will BIP.
BIP does generate K-1 fun.
The amount of bookkeeping required for K-1s can be considerable. Many are not bad, including almost all K-1s issues on account of preferred. Some are awful.
The real work comes when you sell a K-1 issue. You have to do basis calculations, as well as recapture of certain previous write offs. Tax software helps immensely but you still will have manual calculations to do and years of records to go through.
For the above reasons, I have whittled down my K-1 issues to 1) preferred issues with simple K-1s, 2) common units that I intend to hold forever, and 3) non-UBTI generators that I stuff in my Roths. This is about a dozen issues in total, the biggest being BEP and BIP, both in Roths.
Tim, thanks as always for the work you’re putting in.
On the subject of new issues, which reminds me of alerts, is it intentional that comments are closed on the Reader Initiated Alerts page?