Closed end fund OFS Credit (OCCI) has sold a term preferred issue.
This actually occurred earlier in the week.
The issue is priced at 7.875%.
The prospectus with pricing is here.
I am unable to post the normal table with details since I am out of town, but will get it caught up over the weekend.
NEW BB
CĪON Investment Corp 7.50% Notes Due 2029
Ticker Symbol: CICB CUSIP: 17259U303 Exchange: NYSE
https://cioninvestments.gcs-web.com/static-files/21ef25d4-992f-421a-8438-83b7be6e7473
Pricing Term Sheet above
I’ve appreciated all of the comments on the CEF preferred shares and have a fairly basic understanding of the rules that guide the margin limits , etc. I also see some of the comments (from years past) that recognize what happens when the asset limit is breached. It’s my understanding that this is uncommon, and usually fixed in relatively short order. Can anyone explain to me what would happen in a gnarly scenario where the common share is decimated and they can’t sell more common shares, and the limit is breached? It’s somewhat clear to me that this would force the fund to sell some assets at a loss how can I understand what will happen to the defined maturity preferreds if this happens? I’ve seen the MLP cefs get crushed, and see how that played out, but the ultimate effect on the preferred isn’t super clear to me. FWIW I have maybe 1% total in the ECCC (etc) of the universe and might buy more…
OCCIN has a 8% YTM 12/31/2026
Hmmm.
It is “listed” at Etrade as a grey market with the symbol. OFSCV
At Ally they will happily but in a bid for me for things on the grey market but somehow it never gets filled. So each broker is different but in general if I see it on the grey I do not even bother try to buy it now days. Give it another business day or sometimes two and it will move to the pink and then you have to watch out for the ticker change on the OTC. V to P I think is the norm.
https://www.otcmarkets.com/stock/OFSCV/overview
Will trade under symbol OCCIM. 7.875%. 2029. Not sure about call date. Not trading yet on Fidelity.
@Wilson
OCCIM
Nothing ar Schwabby either
Yes @NWGG, Schwabby is indeed a proper adjective ):
Wrong / stale quotes for widely traded stocks and options using their StreeSmart Edge that they are desperate to sunset and force users to TOS!
Add to that poor cash management wonder why more traders not moving elsewhere….
I switched in June– was surprised that Fido won’t let you buy some (all?)muni stuff such as muni CEFs in an IRA or Roth- part of their nanny strategy around tax free issues- let me make the decision to make ~ 7.5% in my ROTH, ok?
Gary thats been the rules forever. We once purchased NYC munis at a big discount in IRA. Yield was higher than many taxable offerings! Circa 1987…..Trades got cancelled, weeks later, by merrill with the positions way up.
There are plenty of taxable CEF’s you can buy. Just be careful of leverage. Look before you leap. BTW here’s a screen I live by….Morningstar risk evaluation
https://www.morningstar.com/cefs/xnas/occi/risk
schwab doesn’t add new issues until someone calls and complains enough to get them to add it (i.e. doesn’t accept the phone guy saying “oh, it will get set up eventually” and makes them call trade support).
A few years ago I was the guy who called about a lot of new issues when I was flipping everything new, but I don’t do that so much anymore.
Unless things have changed, be careful buying grey market at schwab. They can hit you with a nasty surprise.
Things with a “V” as the last letter of the temp ticker will eventually change to “P” and then to the permanent ticker.
-If you buy the V, schwab will debit your account for the purchase.
-Then, when it gets close to changing symbols to P, they will credit your account back the purchase price (and sometimes let it sit for a couple of days), making it look like you have more cash than you really do. They don’t “lock” the cash, so you can use it to buy other things, but therein lies the trap.
-when the symbol changes in their system, they will “re-debit” you for the purchase amount.
-If you aren’t paying attention and have done anything with the cash they credited back, you will find yourself “magically” short of cash when they “re-debit”. Can cause margin accounts or trading violations in non-margin accounts.
I have never had a problem asking them to add symbols via chat.
They currently do have OFSCV loaded on schwab.com, but not SSEdge.
It’s marked as OTC/expert market, so if you want to trade it, you would have to call in and have them read you a disclaimer.
I’ve never experienced the cash problem you mention, so I won’t comment on that. How long ago did it happen?
The “cash 2step” goes back at least 2 or 3 years and I saw it early this year when I bought a new issue on the grey market. I think it may have started when they started having new issues start with the V ending, then switchint to the P, before moving to the “real” ticker. maybe somebody can remember when that started?
I talked to several people in trade support. I was told either (a) that’s a problem. we will get that fixed” or (b) that’s not a problem we need to fix. so your guess is as good as mine as to when or if they will fix it. I have given up chasing them and just try to pay attention when I trade new issues.
10/31/26 ca
Wilson,
Callable beginning 10/31/26.
Page S-17:
At any time on or after October 31, 2026, we may, in our sole option, redeem the outstanding shares of Series F Term Preferred Stock in whole or, from time to time, in part, out of funds legally available for such redemption, at the Liquidation Preference plus an amount equal to accumulated but unpaid dividends, if any, on such shares (whether or not earned or declared, but excluding interest on such dividends) to, but excluding, the date fixed for such redemption.