As I had noted last week I was going to do some minor buying–and that is what I did on Friday.
I added a small amount of Sirius Point 8% Resettable preferred (SPNT-B) at $25.27–a little more than I had hoped, but it has plenty of accused dividend as it goes ex dividend 50 cents on 2/15.
It is my assumption that this issue will be redeemed on the 1st available date—2/26/2026. This issue resets at the 5 year treasury plus a massive fixed spread of 7.298%. Assuming interest rates trend down SPNT should be able to refinance these at favorable rates.
These shares help my 7% overall target.
I will add these to the ‘laundry list‘ of holdings.
tnt do you run into this with other companies like funds with Blackstone?
https://www.goldinglawyers.com/pfic-rules-2018-is-your-foreign-investment-a-u-s-tax-trap/#:~:text=Foreign%20Mutual%20Fund%20PFIC%20Example,-We%20know%2C%20your&text=Therefore%2C%20chances%20are%20more%20than,an%20owner%20of%20a%20PFIC.
Charles. I don’t own any Blackstone mutual funds. I asked IR the question as at one point I read this is a serious possibility. This is all new to me
So you think the reverse merger with Aspen doesn’t offer risk for the preferreds? I am curious as IDK. I did purchase the common as a result of the news.
Thanks to 2WR for the notice on this reverse merger potential. I actually contacted the newsletter he posted, I can subscribe for $7K. Decided to pass.
Also I can share following from IR:
“Based on our assets, income, applicable financial statements and activities, including those of our subsidiaries engaged in the active conduct of an insurance business, we do not expect that we will be treated as a PFIC in 2022. However, this conclusion is not free from doubt and the IRS could take a contrary position. While we expect that our insurance subsidiaries will qualify for the active insurance income exception for qualified insurance corporations, in light of pending regulations and in the absence of other detailed guidance, our insurance subsidiaries may not meet the requirements for this exception. Moreover, PFIC classification is a factual determination made annually, and even if we are not a PFIC in 2022, we could become a PFIC in later years. Accordingly, we cannot assure you that we will not be treated as a PFIC for 2022 or for any future year.”
I know some on here do not like K-1s, my understanding is the PFIC is something to avoid.