5 thoughts on “Newtek to Redeem 2022 Baby Bonds”

  1. CFO monkey see, CFO monkey do…just think of the bond broker commissions!! Remember the McMasion Craze when the new wealth was being ‘created’ by refi on every quarter point drop? I know mort brokers who wax fondly of those days and are working from their kitchen table on a loptop now. I know a brag-broker who claims he made more on commissions from one client than the house is now worth. Right here in little old pedestrian StL I know folks in a 12 – 15,000 sq foot house on 2 acres who are groaning under the taxes, ins and maintenance, pool, lawn, HOA and can’t get a sale now even though rates are at all time lows. Just a model to refer to as financial instruments are ALSO relative value objects! Who gets stuck holding the bag? Suppose if real wealth is produced this way then Bernakenomics or the 20th Century Solution are the only paths. “Yes, there are two paths you can go down, but in the long run; there’s still time to change the road you’re on…”
    For me, stick to the basics: Laddering out 15 years, some floats, IG, Call protection, wait for downdrafts, diversify to deep value where possible, go fishin’…?
    I am glad this group (Tim’s Site) began digging into resets and floats already…Thanks! CoffeeJ

      1. I didnt sell at $27, but this Spring was happy to get out past $26. Anything past call and 3 divy payments premium is way too much risk in this environment. I dont understand why investors don’t get this. Will be interesting if many others follow suit. Ex. GOODP.

        1. Mr. Lucky–I think we have a lot of inexperienced “yield chasers” in the marketplace right now.

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