PS Business Parks Preferred Details

Below are the details of the new preferred stock issue from REIT PS Business Parks (PSB).

Even though the issue is priced at a skimpy coupon I believe I will purchase a position to try to do a ‘flip’ (short term hold) for 30 or 40 cents (I hope)–of course this depends on how it trades today (Thursday). If the issue comes out of the gate too hot I will not chase it–but at $25 or a little below I will buy.

The pricing term sheet can be found here.

20 thoughts on “PS Business Parks Preferred Details”

  1. I have had an account at TDA for many years, back when they were Waterhouse Securities, and frankly, I have never encountered any of the negative items posted here. I am virtually always fully invested, so I am unaware of any interest paid on the sweep account, since it would be pennies for me. Every representative I have ever spoken to has tried their best to help me by taking care of my request or transferring me to a representative that specializes in the area my request pertains to. Any available cash ( money market ) can be transferred to any of 4 posted accounts overnight on business days ). All new issues are listed for trading very quickly, but those that are not in the main quote section can usually be found in the quote box in the lower left corner ( snap tickets ). My only reservation is that I cannot trade on the Canadian TSX, because I own a few Canadian issues and would purchase more if there was a way to do so, since many have no OTC U.S. listed. Lastly, I have checks I can use, and have a TD bank credit card, a TD bank debit card for immediate cash if needed, and the credit card rewards amount earns an extra 10% if transferred to my brokerage account. Frankly, I find TDA to be an excellent brokerage house for my needs. Others have various reservations.

  2. @kapil

    I have a seemingly perpetual non-funded account with TD, and shamelessly use their research tools, which I like. Their other features seem very good as well.

    I would probably fund the account, except that they don’t have a bank and for this reason I’m with Schwab. Simple to transfer money from brokerage to bank (and vice versa) without the 2-3 day delay of an ACH. Also, I like pretty much all of Schwab’s features, except their stock grades, which tend to run counter to everyone else’s. Don’t know who their source is-maybe some gnome in a cave.

    1. Thanks for sharing Ron.
      I use TD for all brokerage and taxable for banking, bill pay, checking, deposits, all from taxable account. Nice for RMD auto when that day comes.
      If you do cash which I do very little you do need a local bank or ATM card.
      TD just closed their local office but had no cash services anyway.
      I keep a local bank for business accounting segregation and Notary is nice there too.
      I really like the paperless YTD accounting views, linking (nine accounts where I can also see all nine merged as one consolidated Positions view!) gain/loss accounting and end of year tax filing org, also segregated large Watchlists, but I believe just about all brokerages have caught up here on quality in this area. Things have gotten so much easier now.
      So much for asking for free trades anymore! I think it is really just knowing every click and Tab on the site you work with

    1. I have had pretty good success with TDA. However, they still charge $6.95 for new issues. At 9:15 AM, TDA is showing the last trade of PSPBZ at $25.10. I placed an order at $25.00, but do not have high confidence that it will be executed………..and, I do not plan to chase it. Biggest issue I have with TDA is the lack of available money mkt funds that do not charge an early sales fee for funds held less than 6 months.

        1. kapil: do you find BIL (or similar etfs) a better option than a money market fund?
          Yields are very similar, and if they don’t break, money markets do not fluctuate. Do you consider BIL safer? Thx!

          1. Dan, I to have been considering short-term bond ETFs such as SCHO, JPST, ICSH, GSY, or PULS as replacement for a money market fund. Wouldn’t think any ETF is safer than a money market, so the question is will little extra risk be worth the .5% – .75% more in yield.

    2. They’re good for the general public but haven’t been popular among experienced investors. My wife has a TD ameritrade account and I use it to trade the preferred stocks that Fidelity doesn’t offer online. Now that the $7 commission is gone they’re a good place to trade. Biggest negative is they don’t pay interest on sweeps account, you have to manually move your money to a fund or lose the small profits. Their reps are pushy, and that’s good or bad depending on wether you want their advice. I don’t.

      1. Martin, my understanding is that you can request a different sweep account at TDAm. It will likely be one of the Federated MMs.

      2. Martin, I told TDAM not to call me or I would move my account. They even made a note in my file. Ever since then, they have laid off me and I just do my own thing. Ditto with Schwab. You might try that if you have not already done so.

  3. I’m getting really frustrated with Merrill Edge. Yet another one that is unavailable to purchase yet. Same thing with SMNLP. Was great with the benefits of Preferred Rewards but now $0 fees across board looking at options.
    Does anyone know which broker seems to be the quickest/best with making grey markets/tickers like PSPBZ available?

    1. Schwab doesn’t appear to have it yet. I just called them and was told they are working on adding it.

      1. i see it on schwab at 9am. $25.07 292,500 shares traded. Don’t ask me how we have 292,500 shares traded today 30 minutes before market open. Just reporting what my stock quote shows

    2. Tdubz–I have good luck with eTrade–they don’t restrict anything I am buying, although at times they are a day slower. Since I have main accounts at eTrade and Fido I usually find one of them has Grey market available right away.

      I see etrade has this one set up now.

    3. Tdubz, I’ve had no issue with buying OTC securities at Merrill, except for SLMNP. For SLMNP they must be pulling from some data source that conveys zero bid/ask as they are respectively less than 100 shares.

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