NextEra Baby Bonds Trading Soon

We noticed this afternoon that eTrade has the new 5.65% NextEra baby bonds “queued up” in their system under the permanent ticker NEE-N. The ticker doesn’t show up in their system at this point.

Normally when they have the tickers queued up the issue will trade with a day or 2.

4 thoughts on “NextEra Baby Bonds Trading Soon”

  1. I agree, I bought the Nee-j at $23.33 a few weeks ago.
    yield was 5.36 at that price. and its under par so maybe less downsize when we have another turn.
    may wait on the new issue and see if it dips like the other ones did

  2. NEE-I, NEE-J and NEE-K all seem to return roughly the same current yield which was 5.3% last week but has dropped to 5.2% this week. It seems likely that NEE-N will eventually provide a similar yield. So is it likely that NEE-N increases value while the existing preferreds lose value and their yields meet somewhere in the middle. Does that make sense?

    1. I was considering starting a position in NEE-N, but saw that their other issues all declined to 21-22 in the December falloff. I like the investment grade, but think I’ll wait for the next decline to purchase NEE-N.

      1. Good point Alan…looking back at how potential investments performed during last quarter’s downturn and comparing that performance to your own portfolio’s risk tolerance is a useful exercise. Paying a premium for investment grade securities that don’t hold their value in a downturn does’t seem worth it, especially when there are non-IG securities with higher yields and more performance stability.

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