Self storage giant Public Storage (PSA) will be selling a new low coupon (assumed) preferred stock issue. This issue will be strongly investment grade.
PSA is redeeming the PSA-C 5.125% issue with some of the proceeds of this new issue.
Terms on the new issue are typical–optionally redeemable in 2026, cumulative and non qualified.
PSA has a long list of preferred stock issues outstanding.
The preliminary prospectus can be read here.
EarlyBird was right on top of this one.
Yield talk seems to be in the 3.875% to 4.00% area.
Several decades ago financial experts advised keeping about 10% of your net worth in precious metals. Perhaps it should be 20% now. Fed Reserve Chairman Powell is purposely not computing inflation correctly on Housing, Food and Energy so as to keep interest rates artificially low. He knows that this country can not afford even a 1% increase in rates on $28 trillion in national debt. Silver will soon break $30/oz spot with the widest spread to retail at about 20% and heading much higher. The US dollar has the greatest proportional component of the world reserve currency, with China lobbying to dilute the US dollar portion. Availability of silver is becoming less and less. Buy silver now if you can get it below $36/oz.
Jerome Powell doesn’t compute inflation, the BLS does. There are various inflation data sets and various reasons to use one vs. another for different purposes. Do some research on them – you will learn a lot.
I’ve heard this song and dance about silver ever since I started learning about investing over 20 years ago. And no, “financial experts” didn’t advise 10% in PM – some did, most did not. You might want to learn a little history before trying to push others into speculative trades based on decades-old stories.
Priced @ 4.00%
Done deal.
RB
I’m starting to think until there’s a “buyers strike” this is the type of crap we will have to continue to see. My Schwab Rep just called me moments ago with a bond issue from Alabama Power–30 Year Bond, coupon talk is 3.36%. When you factor in “inflation”, “taxes”, etc are you really even making anything???
Making anything? – No.
However, you could just be losing less if the alternative is a money market account.
Either way we are screwed. Yellen the other day said higher rates would be good and supports the massive government spending. Interest on the national debt 10 years from now would be $900 billion. Do these people even know what they are talking about or what is possibly going on?
All their preferreds are over par. Including 3 7/8’s at 25.85. They do small deals and price em rich , as in low yields. I see no strike nor remorse. There’s cash all over.
I was surprised they weren’t trying for 3.75
Personally i would not buy this until i have a better read on inflation. I think there are inflation numbers out this week.