READER INITIATED ALERTS

Below readers can post in the comments section items they believe are important to seen right away by all other readers.

For instance if we are not at our computer and a reader spots a new issue being issued they can post it below where others can come for ‘breaking news’ from other readers.

We want to keep this page ‘fresh’ so we will slick it off every 50 days so the items below remain only newer items.

We only ask that comments beyond the breaking news be kept to other pages or this page will be ‘out of control’ and not fulfilling what I hope is a handy alert page.

465 thoughts on “READER INITIATED ALERTS”

    1. How nice of them. Gather they want your spare cash in their lower yielding alternative.

      Buy MINT.

    1. I noticed my DLNG preferred was popping. It’s funny sometimes I really have to hunt to find out what is going on when i see my preferreds move despite evidently someone else already knowing. My guess is a positive development on the refinancing.

    2. Preferreds and common jumped. Oddly, bonds, not-so-much. Bonds still below 95 (and below where they were two months ago) when they should be at 100 if the refi is in the bag.

    3. JMP Group LLC is offering $25,000,000 aggregate principal amount of its % senior notes due 2029 (the “notes”). Interest on the notes will accrue from September , 2019, and will be paid quarterly in arrears on March 30, June 30, September 30 and December 30 of each year, commencing on December 30, 2019. The notes will mature on September 30, 2029. We may redeem the notes in whole or in part on or after September 30, 2021, at our option at a redemption price equal to 100% of their principal amount, plus accrued and unpaid interest to, but not including, the date of redemption, as described under “Description of Notes—Optional Redemption.” The notes will be issued in denominations of $25 and in integral multiples thereof…
      https://seekingalpha.com/filing/4639459

      1. JMP Group LLC (NYSE: JMP), an investment banking and alternative asset management firm, announced today that it has priced an underwritten public offering of $36.0 million aggregate principal amount of 6.875% senior notes due 2029.

        Net proceeds to JMP Group after discounts and commissions but before expenses are expected to be approximately $34.9 million. A portion of the net proceeds is intended to be used to redeem up to all of the outstanding 8.00% senior notes due 2023 (the “2023 Senior Notes”) of its wholly owned subsidiary, JMP Group Inc., following the completion of the offering, and the remainder, if any, will be used for general corporate purposes. This press release should not be construed as a notice of redemption for the 8.00% Senior Notes.
        The notes will mature on September 30, 2029, and may be redeemed in whole or in part at any time or from time to time at JMP Group’s option on or after September 30, 2021, at a redemption price equal to the principal amount redeemed plus accrued and unpaid interest. The notes will bear interest at a rate of 6.875% per year, payable quarterly on March 30, June 30, September 30 and December 30 of each year, beginning on December 30, 2019.
        UBS Securities LLC and Morgan Stanley & Co. LLC are acting as joint bookrunning managers of the offering; JMP Securities LLC and Wedbush Securities Inc. are acting as co-managers. The offering is expected to close on September 26, 2019, subject to customary closing conditions.
        https://www.businesswire.com/news/home/20190919005928/en/

        1. Thanks Fabrib–this is the one they announced a month or two ago, but never priced. Will get a notice out in the morning.

    4. The refinancing is done and unless there is a default there is no restrictions on paying dividends on the preferred.
      Very good news imo.

  1. New RILY note offering; intent to redeem RILYL.

    B. Riley Financial, Inc. (NASDAQ: RILY) today announced it has commenced an underwritten registered public offering of $50 million aggregate principal amount of senior notes due 2026

    The Company expects to use the net proceeds of this offering to redeem all or a portion of the Company’s existing 7.50% Senior Notes due 2021 and for general corporate purposes

    https://seekingalpha.com/filing/4638039

        1. Wow, 75 million over and with no other bonds that can be called until mid-2020. Talk about a rainy day fund

        2. Will the new RILYN trade OTC initially ? If yes, does anyone have the temporary ticker ? Thanks

          1. HI Gary–no it will not. If you want it early you have to call your broker and see if they can get some for you on their “bond desk”.

  2. I think WFC-R is highly mispriced here. One of the biggest preferred fond has sold many shares and if this is over can go up from here.

    1. I calculate yield to first call to be 4.09% for WFC-R. First Call is 4.5 years away. If you plan to trade this it’s fine. If you want to buy and hold, buy something else.

        1. Just be careful with the flip. If it drops further in price you are locked in, and will eventually get that 4.09 YTC.

          Another example why YTC is always important, even if you don’t plan to buy and hold.

          WFC-P is the best of the past call issues to my eye. 5.25% and no call risk. Not make you rich but won’t leave you broke, either.

          1. Bob is right. Wells pfds have been held back due to all their malfeasance. They use to be higher priced and lower yields than current levels. Still it’s hard to find any coupon of 6 Investment grade pfd or more with a 4 YTC. Their ability to rally may be limited

        2. It looks like it got ahead of itself above $28.00, and that the $29 price was an anomaly, and that any appreciation will be limited.
          What caused the spike? A conversion feature that became more valuable?

    2. LOS ANGELES, Sept. 18, 2019 /PRNewswire/ — B. Riley Financial, Inc. (RILY) (“B. Riley” or the “Company”) today announced it has commenced an underwritten registered public offering of $50 million aggregate principal amount of senior notes due 2026, subject to market and certain other conditions. The Company expects to grant the underwriters a 30-day option to purchase additional senior notes in connection with the offering solely to cover overallotments. The Company and this issuance of notes both received an investment grade rating of BBB+ from Egan-Jones Ratings Company, an independent, unaffiliated rating agency.
      The Company expects to use the net proceeds of this offering to redeem all or a portion of the Company’s existing 7.50% Senior Notes due 2021 and for general corporate purposes, including funding future acquisitions and investments, repaying indebtedness, making capital expenditures and funding working capital…
      https://seekingalpha.com/pr/17635880-b-riley-financial-announces-offering-50-million-senior-notes-due-2026-bbb-rating-egan-jones

    1. Jeesh, they just came out with FtF ATH-A only 4 months ago. Juicy yield on that one at 6.35%. Surely this offering will sink it in the short term.

  3. Energy Transfer (ET) swallowed ETP last year and now has ETP-D and ETP-E. Both are trading slightly below par, yielding over 7%, and not callable until 2023 and 2024, respectively. ET is solid. Looks to me like these are bargains. Am I missing something?

    1. Wilson,
      ET just isn’t one of the ‘cream of the crop’ MLP’s. Debt is a big factor. They may just need time to digest the ETP transaction – who knows, but if you throw up a 1, 2, or 5 yr chart of ET up against MMP and EPD, you can see the stark differences. ET has issued a lot of debt. MMP and EPD are far better capitalized and have much more profitable assets and opportunities, IMO. I did buy some ETP-C when it came out and it’s not much of anything worthy of praise. I think with ETP flavored items, you’re simply ‘paying for the income’ as I like to term it. Don’t expect anything else to happen like much cap appreciation. Even in this economy, it’s still trading below par and has been there for awhile. It’s like $25 is a steel ceiling over ETP-C.

  4. Just picked up chscl at $27.

    My prefereds and baby bonds have been hit hard this week; its weird as I don’t think anything has really changed but a lot of my capital gains have been wiped out. I don’t see interest rates going up, in fact the fed seems most likely to cut again.

    So what gives?

    1. I think there is a perception out there that we are not going to zero interest rates, indeed rates could be flat to higher in the near future. I agree, the FED will most likely cut another 25 basis points, so it is a bit surprising to see the preferred lose as much ground as they have this week. Personally, I find it amusing to watch, but I don’t really care as I have no intention of selling any of mine because I cannot find any fixed income security that even comes close to the yields I am collecting unless I get into something very risky. In fact, I would like to see all of mine go back to par or even under so I could add to a few positions. I am not experienced enough, or maybe just not smart enough to trade in and out of my preferred issues and make any money at it, so I settle for just collecting the income.

    1. A4I, Im playing a little game of…I dare you to call…Bought a nice little slug of VER-F a few minutes ago at $25.20. Doubled down on ol reliable (up until now anyways, ha) PPX at 25.33 also. We shall see…I like par anchored issues with rates jumpy.
      Hoping some of the “late bloomers” like NYCB-U and LXP-C drop again so I can reenter.

      1. My prefereds and baby bonds have been hit hard this week; its weird as I don’t think anything has really changed but a lot of capital gains have been wiped out. I don’t see interest rates going up, in fact the fed seems most likely to cut again. So what gives?

        1. Libero, rates have jumped a lot. Percentage wise the 10 year (which preferreds loosely track) has shot up over 30% in yield in just over a week. That is a quick reversal.
          See counter intuitively as it sounds if Fed cuts Funds rates it actually could increase inflationary pressures on the long end. But in reality yes long end is still low, but bottom line 10 year has moved from 1.45% to 1.89% in very short order.

            1. Pig, I was 0-2, today….I had bids teed up for SR-A, SOJA, PPX, and VER-F. Of course I picked VER-F and PPX which didnt bounce back like the other 2 did. SR-A reversed 50 cents off the low already… SOJA bumped back also. But, PPX and VER-F are more anchored to par and that ultimately was why I went that root.

        2. Yeah, I share your pain. This week has been bad for me. And I didn’t see anything about the financial media screaming that interest rates were rocketing up !!

          However, some issues of high quality are coming down to attractive pricing levels. Just bought more NTRSP at $25.24, hoping it will not be called on Jan 1, 2020. Just a bit of gamble with dry powder.

          1. Inspy – So you’re the reason my standing bid on NTRSP remains below market levels, huh? I sold 2/3 of what I had at 25.645 and have been bidding in the teens to take into account the fact that there’s more than 3 months (not 3 months as I believe the market is assuming) until the next coupon… I didn’t expect to get hit, but now I know why… It’s because of you! lol

          2. With NTRSP you will get at least the next 37 cent dividend. Not much to be gained but not much to be lost, either.

            I’m surprised it made it even 1 divi past call.

      2. Grid,
        I also had a buy clip off on VER.F to add to the huge position I already have. Been buying hand over fist today in numerous positions. Still holding those 2 busted pfd’s. They’ve had a nice run. Was surprised to finally see NYCB above 50! Thought you might be game for that AHL-E with the qualities that it has.

        1. Hey A4I, I sold out of NYCB-U about a week ago at $50.08. I had a pretty good haul on that one for a few month hold. Would look to get back in at right price. I just dont really know much about AHL, now. Brain is getting smaller and I can only follow about 15-20 companies at a time, ha.
          Useless EBBNF factoid…5 year Tbill has almost climbed back to its reset date of 2017. (1.8%). Yet its price is still about $5 lower than when it reset. Times change….

            1. Thats why I bought it, Bob…I always kinda understate things so not to tout something that is a bit different beast…Remember Bob, I was the first one to get into this issue back last year, and call attention to it, so I am a bit partial already.

        2. A4I, I see our VER-F creeping back up from that bottom purchase the other day. I wouldnt be surprised if this doesnt stay outstanding awhile longer. They still have to digest this billion dollar settlement. I doubt much upside is here being past call but a decent yield to hold onto and see. Im over exposed here along with PPX after buying more the other day also on that sell off. Until I find better options I will hold for now.

          1. Grid, The initial redemption of a paltry 10% in July didn’t scream full call anytime soon. I’m viewing it as the board had a few bucks they didn’t know what to do with. I added to the existign position during the downdraft on the day they announced that partial call.

            Interesting footnote – I wasn’t sure how the call would affect those shares purchased the morning of the annoucement, but the numbers worked either way. As it turns out, the 10% redemption only affected the shares owned prior to the announcement.

            1. Alpha, they only used cash to redeem correct? Less than 10% of float so that leaves a bloated $800 millionish still on the books. And this billion dollar settlement will keep the office soda fund tied up for awhile, lol. They maintained there lower IG debt status after settlement. So preferreds are more or less a BB grade.
              S&P stated the BBB- rating after settlement preliminary terms. They said VER would pay this through combination of disposition proceeds, free cash flow, equity issuance, and some debt.

          2. Grid, I’ve continued to nibble a bit on it the past week or so. No worries about a call from me. I’m riding it until the wheels fall off. Same for my beloved might Realty Income, ticker O which stands for oh my does this thing pay me like a King. Let the Fed cut a couple times as expected and I see it hitting back near 25.75 but if not, I’m sure it won’t crash down thru par – may flirt with it, but shouldn’t crash thru it. Same for me with PPX. Riding it until the end. Don’t expect any real cap gains – just steady paychecks. PPX cannot be called in my mind, until at least November – when some Brexit crap should be settled. No way they call it right before all that blows up. JMHO…Always have one hand on the chute…If a call comes, out the window these things go. I’m not married to any of them. They work for me, producing cash. When they stop working, I sell them to 2whiteroses so he can finish whipping the pennies out of them. I’m gone in the wind… whooooosh lol

            You know, you could always join me in RILYZ if you’re bored? ha!
            Bot more today as I continue to liquidate RILYL. I’ll even let you play with my MagicJack device if you want. I know how technologically advanced you are and how you like to trial the latest gadgets. 🙂
            OK, that was a low one…. Your turn…

            1. A4I, I still dont have RSS feeder yet, ha. PPX is one I think you got to flip IF juicing returns are a goal. I have already “captured” the interest payment again this quarter and basically accrued a second one already. And I am way behind last quarters pace, lol. If this thing spikes near $26 again a few weeks outside of exD, which is next month, Im letting them fly again, like last quarter and get ready to reboot again.

              1. Corollary to Gridbird’s hidden gem BUT not without some risk:
                SCE-L $23.64 last trade is too expensive, with Coupon Yield of 5.3% or so for this Southern Ca Edition QDI CUMULATIVE preferreds with risks of Southern California fire, SCE-H 5.75% Fixed Floating, CUMULATIVE with call date of 3/15/2024 is still trading below par, last price $24.75. Caveats: one should REMEMBER to sell it perhaps around March 2013 when the floating kicks in 3 month LIBOR plus 2.99%. Gridbird’s SCE-L is fixed with call protection at 6/26/2022. SCE keeps on raising the rates and comes up with lots of ways to get their fees, e.g. extra charge for using the electricity in peak hours, called critical alerts. The southern ca utility commission is vastly different from the northern CA one, which has historically experiencing problem of rate increases capped by the utility commission. Nonetheless, CA wildfire remains a potential risk with climate change. SCE has installed protective measures against wild fires and there seems to have no protests against their installations.
                https://www.pressdemocrat.com/news/10055343-181/southern-california-edison-shuts-off?sba=AAS
                https://www.latimes.com/california/story/2019-08-17/california-utilities-power-outages-wildfires
                https://www.latimes.com/local/lanow/la-me-utilities-fire-20180910-story.html
                Thank you, Gridbird,
                John

  5. https://www.marketwatch.com/story/a-fear-of-rate-surprises-and-market-moving-trump-tweets-has-companies-racing-to-issue-cheap-debt-2019-09-12

    Many say President Donald Trump’s tweets are adding to volatility.
    By

    JOY
    WILTERMUTH
    MARKETS REPORTER
    By now it is no secret that September kicked off with record U.S. corporate borrowing, driven in part by ultralow rates.

    But the dash to issue debt early this September has come also as highly rated companies look to avoid central-bank surprises and dodge potential jolts sparked by President Donald Trump’s Twitter account.

    “It speaks to the fact that volatility is real high and the narrative can change overnight based on a tweet,” said Jody Lurie, corporate credit analyst at Janney Montgomery Scott, in an interview with MarketWatch, of the rush of corporate borrowings.

    “When they get the green light, they are not going to hesitate.”

    Investment-grade U.S. corporations issued a record $90.4 billion of bonds in the first week of September, making it the busiest borrowing week ever in the sector, since Dealogic started tracking issuance 24 years ago.

    The strongest borrowers of the batch, including Apple Inc. AAPL, -1.45%, issued 30-year bonds while paying investors yields of less than 3%.

    Ongoing borrowing this week brought the monthly high-grade corporate debt tally closer to Bank of America Merrill Lynch’s $120 billion to $130 billion issuance forecast for the month, even with a full two weeks still left on the calendar.

    Kraft Heinz Foods Co KHC, +0.31% joined a handful of BBB-rated companies, with ratings on the cusp of high-yield, that tapped the bond market on Wednesday to borrow $5.7 billion, according to BAML data.

    Read: Gundlach sees 75% recession chance, has a warning about the corporate bond market

    Corporate borrowing even kept pace through Thursday’s European Central Bank’s policy meeting, which resulted in deposit interest rates being cut deeper into negative territory and a restart of monthly bond purchases.

    Check out: ECB cuts key rate, relaunches QE to shore up eurozone economy

    In the high-yield bond market, Uber Technologies Inc. UBER, +0.38% said Thursday it raised $1.2 billion through an eight-year debt offering that increased from an initial size of $750 million, a sign of market confidence in the ride-hailing company after its shares have tumbled 18% since its May IPO.

    Meanwhile, bankers said corporate borrowers have been focused on tweets, tariffs and benchmark rates.

    The 10-year Treasury note yield TMUBMUSD10Y, +3.74% has been climbing in recent sessions, with Thursday seeing it touch a nearly six-week high of 1.723%. Bond prices move in the opposite direction as yields. Because corporate bonds also price at a premium over risk-free Treasurys, upswings in the benchmark can lead to higher borrowing costs.

    Still, negative yields elsewhere have been a boon for U.S. high-grade borrowers.

    “I think what’s keeping the market hungry is the collapsing of foreign yields,” said David Knutson, head of Schroder’s U.S. credit research, Americas.

    “We can wince all we want about high-yield bonds at around 1% in Europe, but if you made promises to return a certain yield to investors, you’re getting forced in.”

    Scott Kimball, senior portfolio manager at Taplin, Canida and Habacht, a part of BMO Global Asset Management, said corporate borrowers likely had little to gain by holding off to borrow until after the Sept. 17-18 Fed meetings, when benchmark rates could go lower yet.

    “You’d be kind of splitting hairs,” he told MarketWatch, noting that most of the Treasury yield curve currently resides below 2%. The other factor, he said, was that Fed officials have given the market mixed signals about whether additional benchmark rate cuts are necessary.

    Trump on Thursday used tweets to complain that the latest ECB stimulus was designed to depreciate the euro and hurt U.S. exports. In a separate message, Trump also said China was expected to be buying “large amounts of our agricultural products.”

    Read: Trump blasts ECB and talks up China’s buying of U.S. farm goods

    Renewed trade optimism on Thursday helped the Dow Jones Industrial Average DJIA, +0.17% mark its longest win streak in more than a year, while pushing higher the S&P 500 SPX, +0.29% and Nasdaq Composite Index COMP, +0.30%

    Trump’s social-media habits have left Wall Street looking for ways to parse how markets react to his tweets.

    J.P. Morgan recently created a “Volfefe” index, a nod to a Trump’s “covfefe” typo from two years ago, with the aim of tracking what impact his digital messages have on U.S. rates.

    While U.S. corporations could benefit from the lower rates Trump has tweeted at the Fed to make, heads of business also have been feeling the sting as he blasts off messages.

    In the past six months, executives at the helm of companies ranging from shoe-seller Designer Brands Inc. DBI, -0.94% to manufacturing company Spectrum Brands Inc. SPB, +0.61% to chip maker Microchip Technology Inc. MCHP, +0.05% each said Oval Office tweets had an impact on business strategy, earning expectations or borrowing habits, according to a MarketWatch review of earnings calls during that period.

    Real estate mogul Barry Sternlicht, the CEO of Starwood Property Trust STWD, +0.21%, also said that “the trade wars fought at 4 a.m. with tweets” has put businesses on edge and increased the odds of a U.S. downturn, during his company’s Aug. 7 earnings call.

    “I think it erodes confidence,” Sternlicht said. “All they have to do is slow down the investment and you have recessions [or] at least a significant slowdown.”

  6. Moodys cut the rating on Ford debt to Ba1, junk status. Ford’s B series, 6.2% preferred took a nose dive down to $25.30. Although I am not a big fan of automotive stocks, I did buy a 1/2 position at $25.30. I think the market over reacted and I expect the price to bounce back. Not sure if I will flip it or hold for the dividend given that currently there is not much available in the 6+% range. NEWTL also dropped to the $25.30 range, but I missed out on a buy at that price.

    1. LarryL – I sold half of my shares … hopefully lowered the risk. I think the market might have over reacted too.

  7. Just bought the new DRADP 10% preferreds from Digirad at 9.95 $/share, in case anyone is interested in taking a look at these.

    1. Nobody else mentioned this one apart you I guess. I found an article on Seeking Alpha today and with a coupon like that everybody jumped on board. Too late. Good for you anyway.

    2. DRAD’s expenses are higher than their income. Now they issued 80 million worth of preferreds, which is $8 mil they have to pay each year. With revenue flat or declining each year, this guy is in trouble. Also has a lot of debt, and the market cap of the company is about the net worth of my next door neighbor, which is pretty small.

  8. Not sure if there are many people investing money with the U-Haul Investors Club, but today I noticed they finally posted another real estate loan. 30 years at a rate of 6.50% on a property in Quincy, MA. They are borrowing $351k against the property and the property is assessed at $574k, per the tax assessors office in Norfolk County, MA. This rate is down from loans that were posted just 6 months ago, when they were paying 7.75% on other 30 year loans. These types of investments are for long-term investors only, as investors become the “bank” and should expect to hold the loan until maturity – which is a very long time away. I’m 50 years old, so I’m fine with this type of investment.

    1. I have been active with U-Haul the past several months. Mostly going for the 2 to 3 year notes with a couple of the 5 year sprinkled in.

    2. kaptain–the wife and I just hit 16,000 in our uhaulinvestorsclub ira’s. Just using new money. I have done a lot of 2 and 3 years–some 5 and a sprinkling of 8 year issues. I’m loving it for a small chunk of our funds.

      1. Tim, when Disney is issuing 30 year notes with a rate of about 3%, the 2 year issues at 3% certainly make sense with the U-Haul Investors Club.

    1. I’m with you on AHL-E. My position on this one is now 2 times the normal size for me. Compared to the new BAC 5% offering, this is a no brainer.

      1. Hi Zwei,
        I also own AHL-C, which is trading much higher due to the FtF feature and higher yield…. but with this 5.0% stuff coming out, I’ll take a QDI, dual IG, 1st call in 5 years issue like AHL-E all day long. A year from now I’ll be wishing I’d backed the whole truck up for a 5.51% current yield on AHL-E.

        1. When AHL-E came out I sold all my AHL-C and put twice as much into AHL-E.

          The pick up in YTC was huge.

  9. For SLMNP fans, note the pricing of new bonds offered by LYB – Based on The Moron Squad’s previous argument of why NSS should be trading higher because of where NSS straight bonds due in 2027 were trading, this LYB bond issuance should mean SLMNP ought to be trading at something like $1300 – lol…. Still, confirmation of LYB’s standing in the international bond market…

    LyondellBasell Prices Public Offering of Guaranteed Notes
    PR Newswire PR Newswire•September 10, 2019
    HOUSTON and LONDON, Sept. 10, 2019 /PRNewswire/ — LyondellBasell Industries N.V. (LYB) (“LyondellBasell”) announced today that LYB International Finance II B.V., its wholly-owned subsidiary, priced a public offering (the “Offering”) of €500 million aggregate principal amount of 0.875% Guaranteed Notes due 2026 (the “2026 Notes”) and €500 million aggregate principal amount of 1.625% Guaranteed Notes due 2031 (together with the 2026 Notes, the “Notes”). The Notes will be fully and unconditionally guaranteed by LyondellBasell. The Offering is expected to close on September 17, 2019, subject to the satisfaction of customary closing conditions. The net proceeds of the Offering are expected to be used to repay the $1,000 million of indebtedness outstanding under LyondellBasell’s $4,000 million three-year term loan facility and a portion of LyondellBasell’s outstanding short-term debt, including commercial paper.

    Citigroup Global Markets Limited and Deutsche Bank AG, London Branch are acting as the joint book-running managers for the Offering.

    1. 2WR, PM your buddy Moron and tell him to lay down the potato chips for a minute and order one of his lackeys to write a strong “buy reco” for SLMNP, and tell them it is worth $1300…Of course they need a week or so to get their shares rounded up before they write the pump article, lol.
      Then maybe we can join da boys and sell into the rally. 🙂

      1. Not good enough Grayhawk. The site rejects your 5.125% bid. Please go back and tell them we’re not interested unless this thing has a 6 handle. We’ll make it worth your while… lol

    1. Sorry for the ignorance, but what does “incoming” mean? Is it a forthcoming new issue, or a call incoming?

          1. That’s funny, but I hear ya… I’ve recently resurrected the term “firing for effect” and each time my wife looks at me like I’ve lost my mind, especially when I use it while painting or tossing the TV remote to her.

    1. BFS-E
      “The Partnership intends to use the amounts received from us to redeem all or a portion of our preferred interest in the Partnership relating to our Series C preferred stock, and we intend to use the proceeds of such redemption to redeem an equivalent amount of our Series C preferred stock, which became redeemable by the Company on February 12, 2018, and the depositary shares related thereto.”

      (C currently trading @ 25.57)

  10. NEW YORK (S&P Global Ratings) Sept. 9, 2019–S&P Global Ratings today assigned its ‘BBB’ issue-level rating to Charlotte, N.C.-based Duke Energy Corp.’s proposed series B cumulative redeemable preferred shares. The company will use the proceeds from these shares to repay a portion of its outstanding commercial paper, to repay at maturity $500 million of outstanding 5.05% Senior Notes due September 15, 2019, and for general corporate purposes. We expect to assign intermediate equity credit (50% equity) to the shares based on the proposed terms. Our intermediate equity treatment is largely premised on the instrument’s permanence, subordination, and deferrability features, as defined under our criteria for hybrid securities. The series B preferred stock is perpetual, with no maturity date and no incentive to redeem the issue for a long-dated period, meeting our standards for permanence. In addition, the dividend payments are deferrable, fulfilling the deferrability element in our criteria. Furthermore, the instrument is subordinated to all existing and future senior debt obligations, satisfying our condition for subordination. For these reasons, and based on our review of the proposed terms of these instruments, we rate the securities two notches below our ‘A-‘ issuer credit rating on Duke Energy. For our most recent issuer credit rating rationale, see the research update on Duke Energy published on May 20, 2019.

    1. Worth noting that the new DUK issue is a 5-year reset. May want to look at comments I recently posted in the “Canadian discussion” section on the move of U.S. issuers to this pricing structure.

      1. Bob, Im not ruling out this being an institutional preferred. Might trade on bond market if snag able at all, being its $1000 liquidation value. There are issues like this on bond market unbeknownst to us retail boys and girls. And many are available to buy as they only trade in large blocks. Southern California Edison (SCE, parent EIX) for example has one just like this…A 6.25% cumulative preferred fixed to float (2022 float date with it being Libor plus 4.2%). This is their Series E preference stock. A pure preferred stock, but has a bond cuspid. http://doc.morningstar.com/document/8e0a0871e36fa97c9e6a658ea9818cfd.msdoc/

        1. Correction..probably NOT available to buy due to their large block sells. Forgot that little but important word……

          1. Grid … you may be right about it being institutional. Normally, wall Street saves the “good” issues for institutional and sell the “crap” to the dumb-money, that is to say you and me.

            I think what’s happening is the buy-side folks have zilch experience with 5-year resets, and they are the dumb-money on these. They really need to look at some Canadian reset charts before they buy.

            The recently issued U.S. 5-year resets are WORSE than the Canadian equivalents in that they don’t have an option to covert to a 3-month floater. If U.S. rates go to zero, these resets will fall to 10 bucks a share when they reset. I’m sure the sell-side folks know that, but I’m not sure about the buy-side.

            1. I agree with you. I sold my 2 US based 5 year resets and bot some ENB preferreds at much better yields.

  11. NuStar expects Texas hub’s crude loadings to double this month:

    Crude loadings out of NuStar Energy LP’s Corpus Christi, Texas, export terminal will more than double, to about 500,000 barrels per day (bpd), by month’s end, an executive of the oil pipeline and storage operator said.

    NuStar earlier this year had loaded a monthly average of 200,000 bpd and reached 280,000 bpd last week, according to consultancy RBN Energy, as new shale pipelines to the U.S. Gulf Coast opened last month.

    https://www.hellenicshippingnews.com/nustar-expects-texas-hubs-crude-loadings-to-double-this-month-executive/

      1. I am very suspicious of NS, but owned NSS many times. I will admit, I bought a few hundo of the C series preferred recently. Just as a slight bit of a counter weight to some low yielders I own.

    1. maybe i havent been paying attention on new floaters.. but this Citi pfd floats on SOFR vs LIBOR.. I think that is the 1st float on SOFR w no mention of LIBOR I have seen so far .. anyway there is no interest by me (or in any pfd/bb at this time, no thanks to these low rates). Bea

      1. From Barron’s earlier this year:

        Citigroup is “actively evaluating alternatives” to change an unusual quirk in the language of its preferred-share contracts, according to recent comments from its executives. Such a fix would help investors avoid a worst-case scenario of unexpectedly low yields if regulators succeed in their efforts to kill off the benchmark London interbank offered rate by the end of 2021.

        The back story: On Jan. 11, we warned about the language affecting $11 billion of Citigroup’s (ticker: C) preferred shares. Those shares’ yields are meant to switch from a fixed rate to a floating rate on a predetermined future date. The problem is that the floating rate is based on Libor, which regulators want to discontinue. And if Libor is discontinued, investors could get stuck with lower-than-expected yields. Here’s why: Unconventional language in those shares’ contracts say that if no banks are providing Libor quotes when the shares switch over to a floating rate, the benchmark will be Libor at the time the shares were issued. Interest rates were near zero back then.

        Citigroup hasn’t decided how exactly it will change the language in those contracts, however. Citi could exchange the $11 billion of preferred shares for new shares with stronger contractual language, or it could amend the contracts on those securities to fix the problem. Citigroup Treasurer Mike Verdeschi Verdeschi also said the bank could use “other means,” which might include buying back the shares, since they become callable the same day they switch to a floating rate.

      2. Bea, given the roll out of lower rate pfds, I would be curious to know what sectors you are considering for new positions, if you’d like to say. thank you.

        1. D.. I have a few reits on my watch list ((RPT, KRG, MAC, TCO, PK, MGRUF, NPRUF (CA issues) ) but I am in mostly mmkt fund now and rolling 3m CDs.. no pfds, cef’s, bb bonds, mlp funds or midstreams ( BCX, BGR, FEN top my watch list)..

          after the Oct-Dec ’18 swoon when all highly rated issues got crushed along w REITs, cef’s et al and the DGI crowd darlings, the inevitable chance will come by again, it always has, to grab some deals. But that is me, don’t need the income and not suffering any capital losses or getting stuck with anything when it happens again but ready to pounce. that is just what works for me.. B

          1. thank you very much, Bea, I have been lightening up holdings, trimming over par buys and what I think are susceptible issues, I have no problem with mmkt for the time being. I also thought of reits, but not comfortable with that at present, and thanks for sharing your list of possibles.
            sometimes it’s better, and harder in its own way, to do nothing.

          2. Not to criticize at all, Bea, but I just want to present another way of approaching the current situation for those of us who don’t need the income to live on. (How lucky we are.)

            Your choice is to sit in a mmkt fund, not suffering capital losses but foregoing current income.

            My choice is to keep reinvesting in things that can’t be called away, not foregoing income, but potentially suffering capital losses. But because I’m buying only investment-graded securities that I intend to hold forever (I wish, lol), any capital losses I suffer will only be on paper unless something blows up on me unexpectedly.

            If this period is indeed cyclical, you will be able to buy handfuls of quality with all your dry powder when it turns again.

            If, on the other hand, this is a global sea change–with rates heading lower everywhere for as far as the eye can see–then my income will continue to be an unspectacular but rising tide, hopefully without any Tsunami-like crash for the rest of my life. I am also in the unique position of not having heirs to worry about, so if my holdings only survive me, it would be fine.

            These are truly portentous times, far away from the 9-10% insured bank CDs that were readily available when I started investing long ago.

            So we are forced to make more and more dicey choices, trying as best we can to stay as safe as possible as we put our money at risk in this uncertainty.

            You and I, Bea, are lucky in that we know where our next meal is coming from and have our basic needs well-covered. But for those sitting on the Outer Banks, weather reports of this financial windstorm will certainly focus the mind completely. I hope everybody stays safe.

            JMO

            1. Camroc.. I understand your view… for me, from a macro standpoint, settling into accepting that rates will stay this low or very low for 25yrs of my potential life expectancy is just not my view.. seeing long time skeptics converting to acceptance of this low forever macro view makes me even more certain opportunities in fixed income will once again present themselves in the next few months or years..

              like Tim and his Mrs., I don’t like capital losses.. I can see 20-25% happening real easy when some of these sectors go out of favor.

              1. And if I had 25 more years, I might be right with you but, alas, I doubt I have even half that.

                So it goes…

                1. I personally see both your viewpoints and pragmatic. History shows both your sides to be correct for historical purposes. We have seen depressed long yields for 25 years in a row before..1940s through early 60s for example. Just look at legacy preferreds issued during this era and one sees issues 25% lower than todays IPO quality issues….With a meddling Fed (sound familiar?). But these are equities still and thus exposed to market swings too. So one could find better prices even in current low rate environment at some near point too. And of course the obvious rates could go up also. Smarter men than me have had their recent predictions miss mark badly.
                  In fact I got mine set up to where over time they will zig and zag, along with a touch of term preferred and a few that most likely will be redeemed at some point. But counter intuitive, since I am invested and will reinvest all proceeds, I am better off long term if prices drop as my future yield income stream will be at a higher yield if ever accessed. But that isnt my preference because like Bea, I keep an eye on the bottom line worth.

              2. Bea, You make compelling points that cannot be ignored. Though also have to support Camroc’s “keep reinvesting” posture as quite defensive against any big shifts in the market. Assuming one has capital in reserve or available for an “event”, even a 20% capital loss on say an NCZ-A can be quickly mitigated by averaging into the position. Now of course that does not eliminate the initial capital loss if it occurs, but if disciplined, it does from a financing perspective provide a mechanism by which yield on cost would rise quickly in a rate-up market. Alternatively, if an event does not occur for a very long time, Camroc’s income just keeps rising and he’s the genius in the room. But if it’s an all-in or nothing proposition, I can certainly agree being a stakeholder in the sub 5s begins to be a problem. Off course we have no idea what will occur in the future, but sobering I think is that rates have been falling steadily for nearly 40 years. My principal objection to lower bound is that while the return drops, non interest rate risk is not dropping proportionally. For this reason, it seems safety is more important than ever.

            2. Camroc…an added benefit to your approach (provided you’re at least 70.5) is that paper losses lower the basis on which required minimum distributions are calculated. As long as the dividend payments are well covered, having some poor performing stocks in your portfolio may help keep your RMD down.

      1. marc, In CA…we’re seeing mark-downs every day. Not exactly a buyer’s market yet, though six-figure reductions are common now. Related: lot of folks leaving again due to Sacramento, rapidly rising crime, cost of living (tax and fee purgatory), cost of doing business, excessive regulation, exploding homeless population and some other obvious headline issues. Sad really. The Golden state has lost her luster.

        1. Yes, indeed. very sad. Include ever-rising cost of utilities, insurance, and overcrowding on poorly maintained freeways & roads. Quality of life in California has definitely gone downhill.

          1. Yes, I have old friends in the LA basin who would like to leave but unfortunately feel trapped there by circumstances, living their lives day to day, just hoping for the best. I don’t even visit them anymore. They come here…

    2. The new C pfd issue equals $ 1.5B, which isn’t peanuts; Obviously they have a good use for it.

  12. DLNG-B. I’m getting nervous. Debt refinancing must be done before late next month. In June, DLNG said that the restructure should be finished in two months but that it was slow-moving because of the number of banks involved. It also said under the then-contemplated terms, the common dividend would be eliminated but the preferred would be untouched. Since then, silence. I’m concerned that maybe DLNG-B is at greater risk with the delay. Anyone other than me in it? Thoughts? It will jump or tank with the refinancing.

  13. Early redemption for TCGP.

    Following the pricing of the offering, Carlyle issued a conditional redemption notice pursuant to the tax redemption provisions of the Preferred Units to redeem them in full on October 7, 2019 at a redemption price per unit of $25.339757, which is equal to $25.25 per Preferred Unit plus declared and unpaid distributions to, but excluding, the redemption date.

    https://seekingalpha.com/filing/4627376

  14. PEI and its preferreds C and D are getting crushed today. Anyone know why? I can’t find any news. Buying opportunity, especially PEI-C? Thx.

    [By the way, I posted on Sandbox and then realized I might be in the wrong chat room.]

    Tim, I’m on an iPad, and in order to post, I have to scroll a looong way to the bottom of the list. Would be nice if I didn’t. Not complaining about your great work, just reporting.

    1. Wilson, don’t get bloodied up . Rates are up a bit and the green light for stocks is flashing, so many investors are selling their preferreds to buy stock, IMO.
      Mbino was also sold today and others too.

    2. Wilson—I will look at that tonight–I can break pages, but sometimes folks want everything on one page–let me review tonight–this thread has 628 comments right now–getting a bit long.

      1. You can put the form at the top so peeps dont have to go down to the bottom.
        Or put a link at the top/right to jump to the posting tag at the bottom of the page. Or if coding, you could have a universal post form (which all pages use) that pass a parameter from the page it came from so you know which page to post the comment to.

    3. Wilson – at 2:00 this afternoon, CFRA downgraded PEI to a Strong Sell and gave a price target of $4.50 on the stock. The common fell over 8% today and think the preferreds were just following the weakness in the common shares.

    4. They were already way down at 20 bucks for a 25 dollar preferred.
      That is everybody thinks they are going to file bankruptcy territory.

    1. Had to happen. I see they have a 5.62% which is redeemable now and a 5.875% redeemable in December.

  15. BANFP was up $4 today. I am not sure if that is actionable for anyone at this point, but someone wanted it awfully bad.

    1. Kids, let this be a lesson to you about why you always want to use limit orders.
      Though it did give me an idea.

    1. B. Riley gave an excellent presentation at the Gateway Conference in San Francisco today. For folks wanting to know more about how this company does business, there is a webcast link and slides on their investor relations page.

  16. American Finance Trust (AFIN) has reopened their 7.50% AFINP shares according to a news report this morning at about 9:00. I own a fair number of shares in this medium-risk REIT preferred and currently shares are trading at $25.35 this morning. I’m actually looking at my accounts this morning to sell off a few higher priced preferreds and pick up more shares.

    This one is certainly worth some risk for me, considering that just yesterday John Deere (DE) issued a 30 year bond under 3% and it appears that DIS may do the same in the next week.

    1. COF.PRC just became callable 9/1/2019 and just paid a dividend.
      Assuming they both get called on 12/1, the dividend is about $.40 for each, so they would need to trade somewhere around $26.00 or higher for a short to be worthwhile.
      So just in case, I put out a limit short order for $26.00 for 60 days.
      Let’s see if it gets filled.

  17. ALL-D, ALL-E & ALL-F are being called on Oct. 15.

    Allstate Announces Redemption of Series D, E and F Preferred Stock
    4:47 pm ET September 3, 2019 (BusinessWire) Print
    The Allstate Corporation (NYSE: ALL) today announced that on Oct. 15, 2019, it will redeem all of its outstanding Series D, E and F Preferred Stock at par for a total redemption payment of $1.133 billion. Allstate will use the proceeds of its Aug. 8, 2019, $1.150 billion issuance of 5.10% Fixed Rate Noncumulative Perpetual Preferred Stock, Series H, to fund the redemption. The average dividend yield of the securities to be redeemed is 6.54%.

    The redemption will include all 5,400 shares of its Fixed Rate Noncumulative Perpetual Preferred Stock, Series D; all 29,900 shares of its Fixed Rate Noncumulative Preferred Stock, Series E; and all 10,000 shares of its Fixed Rate Noncumulative Preferred Stock, Series F; as well as the corresponding Depositary Shares, each representing a 1/1,000th interest in a share of the Preferred Stock.

    The Depositary Shares are currently traded on the New York Stock Exchange under the symbols “ALL PR D” (CUSIP No. 020002804), “ALL PR E” (CUSIP No. 020002879) and “ALL PR F” (CUSIP No. 020002853). The Depositary Shares will be redeemed at a redemption price of $25.00 per Depositary Share, representing a total redemption payment of $1,132,500,000.

    On Oct. 15, 2019, a dividend in the amount of $0.4140625 per Series D and E Depositary Shares and $0.390625 per Series F Depositary Shares will be paid in cash to holders of record at the close of business on Sept. 30, 2019. On and after the redemption date, the Series D, E and F Preferred Stock will no longer be deemed outstanding, and no further dividends will be declared or payable on them.

    The Depositary Shares are held through The Depository Trust Company (DTC) and will be redeemed in accordance with the procedures of DTC. Payment to DTC will be made by Equiniti Trust Company, Allstate’s redemption agent for the Depositary Shares. Questions about the notice of redemption and related materials should be directed to EQ Shareowner Services by mail at P.O. Box 64858, St. Paul, MN, 55164-0858, Attention: Corporate Actions; by overnight courier at 1110 Centre Pointe Curve, Suite 101, Mendota Heights, MN, 55120-4100, Attention: Corporate Actions.

    This news release does not constitute a notice of redemption under the certificates of designation governing the Series D, E and F Preferred Stock or the deposit agreements governing the Depositary Shares and is qualified in its entirety by reference to the notice of redemption issued by The Allstate Corporation.

    Financial information, including material announcements about The Allstate Corporation, is routinely posted on http://www.allstateinvestors.com.

    View source version on businesswire.com: businesswire.com

    SOURCE: The Allstate Corporation

    Greg Burns 847-402-5600 John Griek 847-402-2244

    1. You have got to be kidding me!!!!!!!!!!!!!
      I put in an order to short ALL-D at 4:30 today after I read that post about it.

    1. Also, the RAIT symbols have changed:

      RASF -> RASFQ
      RASFP -> RASGQ
      RASFO -> RASJQ
      RASFN -> RASLQ
      RFTT -> RFTTQ

              1. RFTA is really confusing at this point. I had small holdings in several accounts, knew the maturity date was 8/30/19, and wondered why it was still trading at ~$20 (for face value $25 baby bond) the day before maturity. Of course could find no current financial info for the company. But decided to take a chance and on 8/29 bought 1000 shares of RFTA. Woke up the next morning – maturity day – wondering if I had just thrown away (or at least tied up) $20K… but no, I found that both my prior day purchase and my longer term holdings had ALL been redeemed at $25 (but no interest), and that the company had filed for bankruptcy.

                So if ALL of my RFTA was redeemed on schedule, why is this baby bond still trading? Were there some holders whose RFTA was NOT redeemed?

                1. Some holders have reported that their redemption payments were already reversed and they got their RFTA shares back. I wouldn’t spend the money 🙁

    1. EZT fell 5% today, and oddly enough, I was able to enter an order to short it at $26.70, something I wasn’t expecting to be able to do.
      If it gets called, it still has $1.70 to fall.

        1. Tim, for Etrade some special terms, conditions, and fees are associated with selling this one short but you can do it. Only in a margin account though.

      1. Justin – Interesting you could short EZT… Do keep in mind EZT does NOT really have all of $1.70 to fall because if it’s called, it will be called on 30 days notice and will be called including paying the accrued. So if announcement of call happened tomorrow (it will not be that quick if it’s to be paid by proceeds from this issue), EZT should be worth approx a minimum of 25.13 when it’s called.. It will increase the longer it’s outstanding. Good luck with your short… Keep us posted on how it works out…

        1. I have often thought about shorting preferreds but I was always told stock was not available. Curious if anyone has had luck shorting on a regular basis, and if so where.

        2. You are correct, I should have clarified that, but they just paid an interest payment today, so if they announce a redemption shortly, we are still way in the beginning of the 3 month interest rate period.
          As it pays a quarterly interest payment of $.35, I am expecting that it will be called on the next interest payment in December and for it to trade down to $25.50 or below after the call notice is published, which is when I will cover the short, thereby making my $26.75-$25.50 minus commissions on either side.

          1. Justin – I’m curious as to where you’ve seen an expectation of them calling EZT…. There’s nothing in the Use of Proceeds that indicates they’re going to use any proceeds from the new issue to call any outstanding debt or preferreds… Best I can see EZT does represent that highest coupon of either outstanding but I see no comments from the company saying they’re issuing new to call anything old.

            1. Just a hunch, partly because the size of the issue is $135,000,000, and they sold $35,000,000 today, and have $200 million left over from a debt issuance in January that yields 4.0% and 4.5% respectively.
              So I am guessing they use $35 million plus a $100 of the $200 and redeem this issue, and then use the remaining $100 million plus another lower rate preferred to redeem another higher interest bond

              1. Justin, I dont know anything about the cash laying around from previous bond issuance from issuance in January. But, greatly in your favor, Entergy is an odd duck in that in past they issue mortgage bonds in baby bond format. This of course gives higher debt rating and lower yield. Clearly they could call EZT at a substantial savings by just reissuing mortgage bonds even if they had no cash.
                I cashed in nicely from a mortgage issuance to redeem old Entergy Ark preferreds last summer thanks to Tim’s tip. And they dragged their feet forever in redeeming, like 4-5 months after publicly stating in filing they were redeeming them and after receiving the proceeds from the bond. So you could score here. The market got scared too as they sold off I like your bravery and hope it goes well!

              1. Though a call has not been announced on ALL-E or ALL-D (they have to do both at the same time), the Aug 2 new issue gave a stronger hint that they might than ETR did with their new issue… ALL stated, “We intend to use the net proceeds from this offering of Depositary Shares for general corporate purposes, including the potential redemption or repurchase of certain of our preferred stock.” I think All-E and D are the highest coupons ALL has outstanding that are callable…. ALL has until 9/15 to announce a call since they are ONLY callable on a coupon payment date (not at any time like ETR) upon a minimum of 30 days notice and the next payment date is 10/15.

                1. after the market today, they announced calls on both, and E-Trade allows you to short both.

                  Just shoot me….

  18. First Internet Bancorp–INBKL. Anyone have insight into the large drop in price on INBKL? Last trade was at $25.00 (-$0.85). There was not a corresponding drop in INBKZ. I placed a buy order, but am not optimistic it will happen. Concerned that it is a computer glitch more than anything else.

    1. Looks like 6 transactions totaling 2000 shares trading right at the opening, 200, 10, 400, 1000 and 190 shares.

    2. LarryL : Sometimes that happens on thinly traded issues. I had the same thing happen of one of mine, INN-E. Dropped .85 at the open but ended up the day down .11. The first trade of the day was for only 100 shares. I think what happened is someone had a lowball bid out there and someone put market price sell on their 100 shares. All I could come up with as there was absolutely no news and past the ex date 3 weeks back.

    3. LONDON (Reuters) – U.S. exports of liquefied natural gas (LNG), negligible just three years ago, now amount to 10% of the global market and at 22 million tonnes so far this year are equal to the total volumes pumped out in 2018, Refinitiv data showed on Tuesday.
      The data, comprised of tracked individual journeys made by LNG tankers from supply source to destination, also showed LNG production hit an all-time high last month of 31 million tonnes.

  19. Has anybody been able to short a called preferred trading over par?
    That would seem ripe to do, since some of them can be predicted ahead of time.

    1. Assuming it could be done, which I’m not sure you could, the shorter would be responsible for paying the final dividends on the borrowed shares used to short. So yes there would be a predictable decline in price but the amount over par of a called preferred is usually very close to the final dividends thus wiping out any profit.

      1. There is a predicable decline, but I have seen a few day lag in some cases, so I am going to keep checking and see if I can short a preferred because I know the numbers are there.

        1. Justin – I did look into the idea awhile ago but didn’t get very far and quickly abandoned it. As predictable as the process is, there are always the outliers…. Yesterday was the final trading day of called NEWTZ with its call today at $25.00 plus coupon payment of .3073. NEWTZ closed at 25.85 and only traded below 25.3073 on 2 days after the call announcement.

  20. Also, 2600 AILLL has changed hands so far today @ 27.25. There may be more. I know Gridbird bought higher than that a few days ago.

    1. If I had know 2600 were gonna be dumped 15 cents cheaper I would have waited…. I was out golfing and didnt pay attention today. Wouldnt surprise me if some could be had a but cheaper. This way I wont be tempted to flip for the zillionth time because it would be for a loss, ha.

  21. Some PacifiCorp pfds are changing hands today @ above 5% yield. If you drop a lure in the pond somewhere close to those prices you might catch a few.

    They won’t be mine, though. 🙂

    1. Sorry, this is just a conversion of MBFPP:
      ” each share of MB Financial’s Series C Preferred Stock was converted into the
      right to receive one share of Fifth Third’s newly created 6.00% Non-Cumulative Perpetual Class B Preferred Stock, Series A (the “Series A Preferred
      Stock”), having substantially the same terms as the Series C Preferred Stock”

    1. As part of its strategic review Atlas Financial Holdings (NASDAQ:AFH) has identified actions including focusing its Global Liberty Insurance Company of New York resources on New York area business and transitioning other business to alternative markets through its wholly owned managing general agency, Anchor Group Management (AGMI).
      Atlas received on Aug. 16, 2019 a delinquency notification form Nasdaq for its late June quarter 10-Q filing; says regaining compliance will require hiring a new auditor and filing 2018 annual report and quarterly reports for subsequent periods.
      Continues to work with financial adviser to evaluate opportunities including the potential sale of the company, one or more of its insurance subsidiaries, AGMI, or other assets, and balance sheet options.
      As of Aug. 15, 2019, no new business is being written by the ASI Pool and only New York area business will be written by Global Liberty.
      Atlas continues to move forward with its previously announced relationship between AGMI and American Financial Group (NYSE:AFG) and has begun transitioning paratransit policies.
      https://seekingalpha.com/news/3494216-atlas-financial-focus-global-liberty-new-york-still-looking-options

      1. Thanks for the post, Fabrib. I have some AFHBL baby bonds due 2022. They have tanked with the common because of the financial uncertainty of AFH. What do you think is the likely outcome? Am trying to decide whether to continue holding or pull the plug for fear of BK/receivership. Thoughts?

    2. Pitney Bowes Inc. (NYSE: PBI), a global technology company that provides commerce solutions in the areas of ecommerce, shipping, mailing, data, and financial services, today announced that it has entered into a definitive agreement to sell its Software Solutions business to Syncsort for $700 million in cash. The transaction is expected to close before the end of the calendar year, pending regulatory approvals and other customary closing conditions.
      “Our software and data business has made great progress over the last few years achieving two consecutive years of growth and I am very confident of the prospects for this business going forward,” said Marc B. Lautenbach, President and CEO. “We have always said, however, if a business was worth more to someone else than to us, we would consider a sale. The sale of our Software Solutions business to Syncsort confirms that philosophy. Our software and data business, together with Syncsort, provides instant scale that creates value for our clients, partners, and the Pitney Bowes Software Solutions team.
      Lautenbach continued: “While it is never easy to make these kind of decisions, I am convinced that this is the right thing to do for the long term. Pitney Bowes will move forward as a streamlined, global technology company focused on shipping, mailing and related financial services that operates in markets where we have true competitive advantage.”
      Following the conclusion of the Company’s evaluation of strategic alternatives in 2018, Pitney Bowes’ senior management, along with the Pitney Bowes Board of Directors, committed to consider other options to unlock value for shareholders. Since then, the Company has divested its Document Messaging Technologies (DMT) Production Mail and supporting software business; sold its direct operations within the Global SMB business in six smaller European countries; paid down debt; altered the return of cash to shareholders from a dividend to a share buyback; launched Wheeler Financial Services; and continued to invest in its core business with new products in Global SMB and new capabilities in Commerce Services, including the expansion of its domestic delivery network.
      Use of Net Proceeds
      The Company plans to use the majority of the net proceeds from the sale to pay down near-term debt maturities.
      “We have several tranches of debt that are maturing over the next two years and we will use the majority of the net proceeds from this transaction to pay down that debt and we will refinance the remainder,” said Stan Sutula, Executive Vice President and CFO. “Further, we have well-established relationships with our bank group and are structuring a proactive refinancing plan that reflects a diversity of funding sources and will leverage the capital markets, as appropriate.”..
      https://www.marketscreener.com/PITNEY-BOWES-INC-13938/news/Pitney-Bowes-Announces-Sale-of-its-Software-Solutions-Business-to-Syncsort-for-700-million-29114317/

      1. Getting very nervous about PBI-B. Granted I was a newbie when I bought this one and don’t mind holding long term but I appreciate your thoughts if I should just take the loss now before BK. I value any opinions.

        1. Kitti, IMHO – sell, sell, and then sell some more. This is not a viable business and is akin to betting on the USPS ever being honestly profitable. While they may be able to hold on for a few more years with the common stock toiling down near $1.50 or so, they are just not a business that has a successful outlook for profitability in the coming years. Too much of their core legacy business has been permanently erased by electronic communications. It doesn’t allow you to SWAN, I’m sure and nobody likes to sell a loser and take the loss, but having been one who rode things to pennies on the dollar – lessons are learned and you pick yourself off, dry the blood and gat back into the fight.

          1. RFTA is still hovering around $20.00, with essentially radio silence from the company whether they are going to pay it off at maturity on friday, thereby making everybody who was brave enough $5.00 a share to take the chance, or they file bankruptcy and it is quite a while before you get paid, and even then, investors may not get paid in full.

            1. Not sure why you keep grinding your axe on me Camroc, but my facts don’t come from leftists blog sites. I go to the source – the USPS itself:

              https://about.usps.com/news/national-releases/2018/pr18_093.htm

              1. Overall volume decline of 3.2 billion pieces
              2. Net loss of $3.9 billion
              3. Urgent need to advance legislative and regulatory reforms, along with continued aggressive postal management actions to generate new revenue and control costs

              I eluded to the fact that the USPS is not honestly profitable. And according to the USPS, it isn’t. They continue to see costs rise, mail volume decline, hence – continued losses.

              Here is a quote from their statement, which just happens to completely jive with what I stated in my post – “”The secular mail volume trends continue largely due to electronic diversion and transaction alternatives.””

              It’s a legacy business as I stated. PBI and their kin will go the way of the dinosaur at some point. Cherry picking “facts” doesn’t prove points. Either they reported a profit or they didn’t. And they didn’t – for a multitude of reasons.

              1. If you continue to make gratuitous denigrating remarks about America and its government or governmental agencies, which by the way have absolutely nothing at all to do with the subjects under discussion, I will likely continue to respond with links to facts or alternative views. You can probably count on it.

                And I don’t understand, A4I, why you insist on injecting all these nasty political insinuations into what are otherwise cogent investment discussions here. Especially when everyone has been asked not to.

                As mentioned above, if you continue, I will likely respond, although it would be a shame to be banned from here for such stubborn and stupid BS.

                JMO

          2. Kitti,
            For more color on how I think legacy mail operations and those involved with providing software/services for said operations (PBI and others), see the following proverbial ~60yr trainwreck chart:

            https://en.wikipedia.org/wiki/File:USPS_Surplus-Deficit.png

            ~80% of the time over those ~60yrs, the USPS has showed an operating deficit for a multitude of reasons.

            Now, go to Yahoo Finance and pull up the “max” timeframe chart of PBI. PBI is down ~95% since 1999 and has only doubled in price since the very early 1970’s.

            For contrast, STMP (stamps.com) is roughly the same price today that it was in 1999.

            I would fear a cut to the dividend of PBI and that alone would devastate the stock price, IMO.

            My business clients are increasingly chunking their postage meters and stamps.com software and emailing everything they possibly can – a trend which only continues to grow and grow with each passing year. I began to see this trend growing as far back as 3-5 years ago. I can only imagine where it will be 3-5 years from now and these actions will do to the legacy carriers of all flavors, whether they drive a white, brown, yellow, or multi-colored delivery truck.

        2. Kitti–not really up on PBI but had looked at it over the years–but given their base business I could never get past my old thoughts of ‘postage meters’. A4I has opined a ‘sell’–I would not hold it–depends on you age etc. etc., but better to sell and sleep well at night with a new quality holding.

          1. Tim, I mirrored your thoughts as I would frequently peek at the baby bond but always passed. Because of the fact you referred to. That was always their bread and butter business, and they cant seem to find a real profitable way out of that trap.

            1. PBI-B was a double rated IG note when it was first issued in 2003. The risk then was and still is the fact that PBI’s legacy biz is like a boat anchor, becoming obsolete. When it was downgraded triple notch, I did buy some PBI-B. I see the value declining fast and furious. Fortunately, in the next quarter, their report was not so bad, I quickly sold all without net loss (cap loss off set with 1 Q of interest). PBI has spent years developing their new software, always behind schedule. It may appear that PBI has collected a sizeable amount of money. Without looking into their quarterly report and Form 10-Q, I doubt that they actually made money with the software. I would also suggest SELL. The USPS is a biz which does generate income. True that they were required to pay some ridiculous years of pension costs. On the other hand, USPS should reign in the pension plan (very early retirement just like the police, fire fighters, captains especially) on NEW HIRES. Same can be said for Ca Public servants IMHO. The whole world seems to be a big mess. Perhaps we need someone super smart like Michael Bloomberg to make it whole IMHO. Wishful thinking indeed.

    1. https://seekingalpha.com/filing/4610769
      JMP Group LLC is offering $ aggregate principal amount of its % senior notes due 20 (the “notes”). Interest on the notes will accrue from , 2019, and will be paid quarterly in arrears on , , and of each year, commencing on , 20 . The notes will mature on , 20 . We may redeem the notes in whole or in part on or after , 20 , at our option at a redemption price equal to 100% of their principal amount, plus accrued and unpaid interest to, but not including, the date of redemption, as described under “Description of Notes—Optional Redemption.” The notes will be issued in denominations of $25 and in integral multiples thereof…

      1. There goes the rest of JMPB “We intend to use the net proceeds from this offering to redeem all of the $25.0 million outstanding principal amount of the 8.00% Senior Notes and the remainder, if any, will be used for general corporate purposes. For additional information, see “Use of Proceeds.””

        1. too bad you can’t short baby bonds.
          that is a guaranteed $.28 cent loss for everybody.
          Next payment is 10/1 for $.50, so I am guessing that will be the call date.

          1. Justin – First of all, next payment date is 10/15 not 10/1.
            Also given that the new issue has dedicated proceeds to call JMPB my bet is it will be called no later than 30 days after the settlement date for the new issue…. That will be ap. prox no later than 9/25. If 9/25, the call would be for 25.00 plus .40 in coupon. DO NOT be confused by ex-div dates. Coupon payments accrue from payment date to payment date, not ex-div date.

            1. Ack, you are right. 10/1 is the record date and not the payment. You are also incorrect about the payment date accrual. They don’t accrue at all in this case.
              They can’t call it for a date other than the 1st of the month because the offering document doesn’t allow off-cycle accruals of interest. See page S-16.

              1. Justin – Could you quote the language you’re referring to on S-16 of the prospectus for JMPB? All I see is this language on S-15 which says, “We may, at our option, at any time and from time to time, on or after January 15, 2016, redeem the notes in whole or in part on not less than 30 nor more than 60 days’ prior notice mailed to the holders of the notes. The notes will be redeemable at a redemption price equal to 100% of the principal amount of the notes to be redeemed plus accrued and unpaid interest to the date of redemption.”

                That says “at any time,” not at any interest payment date. Am I missing something because I don’t see anything contradicting that on p S-16. [Man! Am I nuts or what getting off on this minutiae kind of stuff?]

                1. The interest payment is calculated on the first of the month, no exceptions.
                  See the Interest paragraph on page S-16.
                  If they wanted to, they could have caveated that paragraph with a different method in the case of a call.
                  But they didn’t.

                  1. Justin – I guess we (well not actually we, but noteholders) will know for sure upon call, but I feel confident the language you are referring to is only defining what an ex-div date is… it certainly doesn’t preclude JMP from calling JMPB on only an interest payment date. It says, “Interest on the notes will accrue at the rate of 8.00% per year from and including January 25, 2013 or the most recent INTEREST PAYMENT DATE [emphasis added] to which interest has been paid, and will be payable QUARTERLY [emphasis added] in arrears on each January 15, April 15, July 15 and October 15 of each year, commencing on April 15, 2013. We will pay interest to those persons who were holders of record of such notes on the first day of the month corresponding to an interest payment date: January 1, April 1, July 1 and October 1, the record date preceding each interest payment date.” The January 1, April 1, July 1 and October 1 dates are therefore defined as dates of record… And “quarterly.” because it refers to payments quarterly, refers to each quarter as defined between Jan 15, April 15, July 15 and October 15. There is nothing in this language that contradicts the statement on S-15 about an ability to call at any time upon 30 days minimum notice… I sense a steak dinner bet in the making here………..

  22. CoBank, which is a 6.12% preferred that is thinly traded, had a massive sale this morning – 10% of its entire outstanding shares. ( 200K shares ).

    Traded down to $101 ( $100 par issue, next XD is 2nd week September, so the next dividend is in the bag because of the usual 30 day notice ).

    In my opinion, the only reason for such activity is a call. However, I cannot seem to find any info ( tried company website and SEC )

    Would like someone to independently check it out, as I don’t think I am that thorough.

      1. Justin, I suspect you are correct about the negotiated institutional transaction. It took place in 2, 100k block trades at $101 and $101.05.

        Time and Sales for CoBank ACB 6.125% Perp Pfd Ser G (CBKLP) Aug 21, 2019
        Symbol:

        Time Price Volume Market
        11:50:39 101.05 100000 OTO
        11:50:28 101.00 100000 OTO

        1. Also, I should add that CoBank falls under an exception for most SEC reporting, so they don’t have near the disclosure requirements that other entities have.

        2. Almost all large trades at RIA firms can be negotiated at their custodians now with a simple phone call. Some of the prices make you wonder.

  23. New Residential Investment Corp. Announces Authorization of Share Repurchase Program of Up to $200 Million
    Business Wire August 20, 2019 04:15:00 PM ET
    NEW YORK–(BUSINESS WIRE)– New Residential Investment Corp. (NYSE: NRZ, “New Residential”, the “Company”), a leading provider of capital and services to the mortgage and financial services industry, announced today that the Company’s Board of Directors (the “Board”) authorized the repurchase of up to $200 million of the Company’s common shares through December 31, 2020.

    Under the program, the Company may purchase its shares from time to time in the open market or in privately negotiated transactions. The amount and timing of the purchases will depend on a number of factors including the price and availability of the Company’s shares, trading volume, capital availability, Company performance and general economic and market conditions. The Company may also from time to time establish one or more plans under Rule 10b5-1 of the Securities Exchange Act of 1934 or by means of one or more tender offers to facilitate purchases of its shares under this authorization. The share repurchase program may be suspended or discontinued at any time.

    “Our Board and management believe that our Company’s value and long-term strategy are not currently reflected in our share price,” said Michael Nierenberg, Chairman, Chief Executive Officer and President. “The program we announced today reflects our confidence in our business and demonstrates our commitment to driving shareholder value. We intend to opportunistically consider the use of this repurchase program when it compares favorably to other capital deployment alternatives.”

    1. I seem to remember a similar buy-back program announced by Mr. Nierenberg back in 2015 when the price of NRZ stock was cratering and barrelling towards the $9 mark. Of course, there is a huge difference between announcing a buy-back program and actually buying back some shares: to my knowledge they never bought a single share under that previous authorization and they may never buy any shares under the latest plan. They do tell you: “The share repurchase program may be suspended or discontinued at any time.”

      Is this “financial engineering” or “creative financing”? Maybe or maybe not, but above all …caveat emptor.

        1. checked it out at Qonline, too complicated for me to understand.
          anyone want to explain the pros and cons?

        1. Not necessarily.

          Tim, please set up a dedicated article for these utility company “equity units” so the handful of us that care, can discuss.

            1. You can find comments I wrote on these issues:

              On this page, at:
              08/13/2019 at 9:57 am

              In the Sandbox page, at:
              08/09/2019 at 4:51 pm
              07/26/2019 at 12:46 pm

              I know I’ve written more about DCUE but it’s been purged when this page gets erased periodically. I just don’t want to write it all again.

      1. I bought some DCUE which is a similar issue from Duke Energy. I keep writing up the details, and they keep getting lost in the depths of comment streams like this one because Tim hasn’t posted any articles dedicated to issues like these.

        The Southern issue has a few quirks that make it a little different from Duke’s. But a similar idea.

    1. ECB Lowers Deposit Rate 10 Basis Points To -0.50%
      ECB To Resume Asset Purchases At EUR 20.0 Bln A Month, Starting In November 2019

  24. RFTA down to $19.83 on volume over 4,000 shares. It matures end of this month if I am not mistaken? Anyone feel lucky? I dont….

      1. Chapter 11, but it looks like the debt will be repaid in full.
        http://www.snl.com/IRW/File/113624/Index?keyFile=399425849
        So everybody made the 5 bucks a share that bought it this week.

        RAIT Financial Trust (OTC Pink: RASF) (“RAIT”) today announced that it has into entered into an Equity and Asset Purchase Agreement (the “Purchase Agreement”) to sell substantially all of its assets to an entity owned by funds managed by affiliates of Fortress Investment Group LLC (“Fortress”) in a sale process under Section 363 of the United States Bankruptcy Code, as amended (the “Bankruptcy Code”). In addition, RAIT also announced that it has commenced voluntary proceedings for relief under chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) for it and certain of its subsidiaries to facilitate the sale process.

        The Purchase Agreement provides RAIT with a binding bid of approximately $174.4 million, subject to adjustment, along with the assumption of certain liabilities, which is subject to higher or better offers in the bidding process described below. The Purchase Agreement contains customary closing conditions to the obligations of the parties.

        1. Pretty cool, huh???? Moved 112% on 2 trades totaling about $600…. Darn! I missed that opp too………

      1. D, He is a very detailed person, but cant see the forest from the trees. He knows numbers but no common sense. His FTR deep dive of math lead him to disaster. I mean 90% plus disaster. Dont be an intellect…Be a bird brain..FTR had bad assets, overpaid for them, and continual subscriber losses…Every quarter…The common stock has been a disaster for 20 years…Any bird brain new those facts…..He has done this several times. With Rait, CBL, and Wheeler. He is on a mission of capital destruction. And doing quit well at his mission too!

        1. I am trying to grow a gridbird brain. it’s all very interesting to learn from the conversations and news flow, but banking the green is what counts. learning is great, tangible rewards better. thanks, Grid

    1. Eugene – I just noticed that too. KIM is selling $350M of 3.70% notes due in 2049 to redeem the I shares with a 6% coupon and the K shares with a 5.625% coupon.

      Yep – Kimco just issued 30 year notes with a coupon of 3.70%. This low interest rate environment is even worse than I thought !!!

      1. I look for a great many more pink slips in the coming months. Me thinks issuers have been waiting on calls to see interest rate trajectory. If they sense we are stalled out on interest rates the trickle will become a flood.

        I have Taps queued up on the player.

      2. Kind of interesting KIM flipped “the debt” from capital side to liability side of the ol ledger. This kind of goes with what I have mentioned before from a historical perspective. Govt bonds are near all time lows but preferreds are not. So the “value” for companies favors debt side for some.
        70 ish years ago 10 yr was in 2% range and perpetual preferreds were being issued sub 4%. This has not happened or even came close yet.

        1. Which is why I have abandoned all my individual preferred issues. Anything of quality with a decent yield that can be called is getting taken out. My only preferred holdings now are a CEF and PFF. Bonds are paying nothing and may even be hazardous to ones financial health.

          Common stock ETF’s anyone ?

      1. Yes Rose–that highlights our future–5.125-5.25% coupons (I hope it remains that good).

  25. In other non-news, RAIT filed another notice of a delay in their 10-Q filing, and no hint about whether they may file bankruptcy instead of paying the $75 million for the bond coming due in 15 days.

  26. I see fake utility Just (dont do it) Energy tanking hard down 30%. Suspends common divi and preferred down 20% in kind also today.

    1. Grid, things break to the downside then energy is a bloodbath. I don’t like the odds. I see ag and o&g both bearish. I see CFO of CHS is leaving. Maybe coincidence. Maybe not. I see AIG-A just hit $28 minute ago. Getting pretty crazy.

      1. I am up 11% on AIG-A, callable in 2024. I am also up 10% on TLT. Continuing to hold both for now but very tempted to cash in. Although I am NOT holding in a tax deferred account so I will have tax liabilities.

        1. libero, I bought a basket of 2019 IG IPOs earlier this year that’s up pretty OK. Over on the NYSE they are warming up the robots (that go berserk when they unleash them). Meanwhile bond traders are running around like sweaty lacrosse players (screaming “it’s going to blow!”). The backup plan is the Plunge Protection Team (which is a bunch of guys in clown suits waving around plungers). Despite all that I’m going to stick with them and watch the show for awhile. This is all very entertaining and I got nowhere else to go. That’s not advise.

          1. P, That’s hilarious. And BTW, my new economic indicator is when your cats go back on lobster and crab.

      1. P, the Americans dont view resets with same suspicion that Canadians do who have been stung before. On a 0% reset at present price its reset yield would be 3.23%. While EBBNF which has same credit rating profile would reset well above 4% on a reset of 0%.

        1. Absolutely right. Anyone needing an education of how naked resets behave when rates plunge should look at the Canadian issues in 2016. You had 25$ issues trading at 8$.

          Americans will get the same education at some point and then American issuers will have to put minimums on their resets, just like the Canadians had to.

          1. The trading in these Canadian resets doesn’t make any sense to me. The floaters have modest positive duration until the next reset and then, assuming spreads on Enbridge don’t blow out, will reset to what the market rate is at the time of reset. So should not be getting smashed when rates do down.

            As Grid mentioned you don’t see this in the US resets. Volume on these is extremely low even on the TSX and I assume it is primarily a Canadian retail investor base?

          2. Bob and Grid, I had been thinking on how one could arbitrage – short NI-B and long EBGEF. lol

            And yes EBGEF is significantly exposed, but not wildly over-priced by comparison.

  27. Assurant, Inc. Announces Tender Offer for Its 6.750% Senior Notes Due 2034
    Business Wire Business Wire•August 15, 2019
    NEW YORK–(BUSINESS WIRE)–

    Assurant, Inc. (AIZ) (“Assurant”), a leading global provider of housing and lifestyle solutions that support, protect and connect major consumer purchases, today announced that it has commenced a cash tender offer (the “Offer”) to purchase up to $100,000,000 aggregate principal amount (the “Tender Cap”) of its 6.750% Senior Notes due 2034 (the “Notes”).

    6.750% Senior Notes due 2034

    04621XAD0

    $375,000,000

    $100,000,000

    2.875% UST due May 15, 2049

    FIT1

    205 bps

    1. It looks like these are actually non-callable bonds and last trade around 128…. amazing they’re willing to pay a make whole call type price for a bond due 15 years out.

      1. They trying to find suckers?
        They are paying $1050 for something you can sell for $1240?
        Are they kidding?
        anybody that tender’s needs their head examined.
        Pretty stupid by Assurant to make them non-callable

        1. Justin, I dont know the reasons but there are many of these littered around. Walmart has a noncallable 7.55% bond issued moons ago. They frequently make tenders. One was a year or two ago at $155….

        2. Justin – You are misinterpreting what they are offering…. the $50 premium is an added incentive to put your tender in by a specified date, but what they are offering is to pay what would be the equivalent of a “make whole” provision for the bond. They are setting the tender to be set where they would pay the equivalent of what the Assurant bond would trade on the day of the tender if it was trading at a spread of 205 basis points above the price of the base Treasury bond they have determined to be US Treas 2.875% due 5/15/2049. Right now, the Treas is at about 1.95% so the price to be paid on the tender would be the price of Assurant 6.75% due 2/15/2034 at approx a 4% yield (1.95 + 2.05). If the tender was today, that price would be about 130… Somewhere along the line, you probably throw in the $50 incentive that probably adds on…. I’m pretty sure my math is correct, but if it’s not, I think it’s pretty close…

      1. Eagle Point Credit (NYSE:ECC)
        Q2 net investment income and realized capital losses of 7 cents per share consists of 36 cents of NII and 29 cents of realized capital losses.
        Compares with 36 cents in Q1 and 34 cents in the year-ago quarter.
        Net asset value per common share of $13.45 at June 30, 2019.
        Deployed $60.9M in gross capital, received $36.8M in proceeds from the sale of investments and received $26.0M in recurring cash distributions from its investment portfolio in Q2, which excludes proceeds from called investments. Including proceeds from called investments, Eagle Point received cash distributions of $46.8M during the quarter.
        NAV per common share estimated to be $13.02-$13.12 at July 31, 2019.
        “Looking at the second half of 2019, we expect the benefits from our past years’ refinancing and reset program will be further reflected in our CLO investments’ 2019 distributions and portfolio activities,” said CEO Thomas Majewski.

  28. Just a note to the fixed income investors here – you may want to take a look at your holdings in the near future just to see if you have any securities that could be called and are trading at a negative yield to call. Today I was looking through my holdings and have some shares of PSB-U with a 5.75% coupon. It’s trading at about $25.70 now and is callable at any time. Considering PSB has already issued other preferreds at 5.20%, this one could probably be called at any time. I am guessing the only possible reason for PSB not calling the issue now is because they think rates might fall even further. Their PSB-W 5.2% issue is trading at about $25.40 so they clearly won’t have any problem issuing new preferreds at close to 5%.

    1. Kap, Was also sitting on a chunk of PSB-U and until about two weeks ago was confident enough they’d leave it alone. But the landscape changed quickly. Like the others, hated to toss an issue like PSB-U but was in at 23.59 and being priced 6 months out in divvys, may have gotten the beauty out of this hold and sold at 25.75.

      The risk/reward on over par/past call and ultra-low YTCs indicates sell in most cases.

      1. Alpha8, really hated to sell the shares as the company has rock solid financials, but when they have other 5.20% issues out there trading over par – I just had to sell the shares. Think I actually purchased them at a very good price when they were removed from the PFF index and the share price dropped dramatically for that reason alone. Sounds like you purchased your shares right around the same price that I did. This is an extremely tough market for income securities right now.

    2. kaptain–you know that any PSA or PSB will be gone at that coupon–those folks will want to issue some 4.9% issues again.

      1. Tim, unfortunately that will be the case with both PSA and PSB due to their financial strength. It looks like PSA-E with a 4.90% coupon rate closed at about $25.60 today.

    3. Glad you pointed this one out, captain. Have been (sadly) house cleaning on issues like this but overlooked this one. Dumped some today @ $25.77. Sob.

  29. ARMOUR Residential REIT, 7.875% Series B Cumulative Redeemable Preferred Stock, ARR-B, is trading @ 25.05 and has a .1641 dividend tomorrow. They recently called the A Series and this B Series is also callable but with no call risk. Tomorrow morning it should open at $24.88 after the dividend and it hasn’t traded that low in a while. I’m betting it makes up that 16 cents pretty quickly. Just grabbed 300 shares.

      1. With the accrued dividend (at the time) the price was below par, thus if they called the issue there was no loss…ergo no risk. It can be called, of course. The “risk” would be if it were trading above, or sell above, par.

  30. Southern Company (SO) planning to issue $50 “Equity Units” consisting of a contract to buy common stock in 2022, and “remarketable junior subordinated notes” which they will attempt to “remarket” in 2022, the proceeds of which can be used to satisfy the contract. Very similar to the recent DCUE (which uses a non-trading pfd instead of junior notes).

    Preliminary filing on SO’s IR site does not have any rates filled in yet. IMO it does a better job of explaining how “remarketing” works, than DCUE’s filing did.

    First mentioned on SA last night.

    1. Thanks Eugene, saw your post and sold BPRAP, callable and no ex-div ’til 9-12-2019, sold at $25.50. Thank you for the heads up. Looks like another one will be history.

        1. I do know it’s BPR but trying to whittle down anything past call with a decent gain. Seemed like a warning shot. Thanks, though.

  31. What happened to RTFA at 3pm today?
    The bond is maturing in 2 weeks and it fell almost a dollar at 3pm today.
    You would think they filed a notice that they aren’t going to pay it off at maturity.

    1. Can’t find anything regarding bonds, nothing in prospectus, pretty small vol.
      BUT, look at common stock plunge below $1, no divy! Refi lockout. listing issues?
      Prefs below $1 no divy!!
      May see some more sellers yet.

    2. https://www.marketscreener.com/CORENERGY-INFRASTRUCTURE-27137024/news/Corenergy-Infrastructure-Trust-Announces-Closing-of-120-Million-Private-Offering-of-5-875-Conver-29055216/
      CorEnergy Infrastructure Trust, Inc. (NYSE: CORR, CORRPrA) (“CorEnergy” or the “Company”) announced the closing of its previously announced offering of $120 million aggregate principal amount of 5.875% Convertible Senior Notes due 2025 (the “Notes”), which includes the full exercise of the initial purchasers’ over-allotment option, in a private placement to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The offering resulted in approximately $116 million net proceeds to CorEnergy after deducting the initial purchasers’ discount and estimated offering expenses payable by CorEnergy. The Notes will be convertible at an initial conversion rate of 20.0000 shares of the Company’s common stock per $1,000 principal amount of the Notes, which is equivalent to an initial conversion price of approximately $50.00 per share of the Company’s common stock.
      CorEnergy will use a portion of the net proceeds from the offering of the Notes, together with shares of its common stock, to repurchase approximately $64 million aggregate principal amount of its 7.00% Convertible Senior Notes due 2020 (the “2020 Notes”) in separate transactions that were negotiated concurrently with this offering. Such transactions are expected to settle on August 15, 2019, with the purchase consideration, based on the average of the daily volume weighted-average prices of CorEnergy’s common stock over a six trading day period beginning on August 7, 2019, being delivered in a combination of cash and shares of CorEnergy’s common stock. CorEnergy intends to use the remainder of the net proceeds for general corporate purposes, such as redeeming preferred equity or project-level debt.

    3. It’s just illiquid. It trades OTC, bid/ask spread is ~0.75 wide, and the volume some days is <1k shares.

      1. It matures in 2 weeks at 25 a share. The investors selling it today are either the dumbest or smartest.

        1. Damn, now down to 21.50 for RFTA. Somebody must know something and know they are going to file bankruptcy on or before August 30.
          Now it is a $3.50 per bond in the next two weeks, and you guys are talking about catching $.16.

          1. Yes, Justin, but if I dont get that 16 cents , I still dont have to worry about it going to zero. Its a totally different solar system trade. Not saying its right or wrong. They just are different animals. Almost all or nothing is what that play is.
            I have followed Rait for years as an entertaining horror show, but never participated. One has to know the deep dive financials to know if the odds favor you to trade or own it. People way smarter than me have dissected this company in the past and lost bigly. I have to assume people way smarter than me would have already bought it up closer to par if it was a layup.
            Keep this in mind this is no indictment to buy or not…..Ya never know…I remember I talked Inspbudget several years ago into buying PECO energy at $19 or so because Exelon was buying them out at like $25. We bought real late thinking DC regulators would cave and allow merger. Exelon came out saying deal was dead. We didnt want to be stuck with PECO on its own so we sold with no gain. The very next day or so it immediately transacted at that ~$25 and nobody got to trade it with an early A.M. closing announcement. So my point is sometimes the in the know people do know something and sometimes they don’t. Congrats to anyone who buys and gets the cash as it would be a nice quick return.

                1. Inspy, if we had just been brave and held on one more day that would have been a big pelt to have hung on the wall.

  32. I decided to dump my BFS-C and take the quick quarter and roll it into something very similar but essentially uncallable for quite a while…RPT-D. Which is a “shopping center reit”. In the same “hood” as Saul and Cedar and marked as such. This sector is only a bit less unloved than mall reits.
    Anecdotally (which means nothing) I like their near by local area centers. They just raised 2019 FFO guidance. Adjusted EBITA is 6.6X which is about average for sector. Interest coverage 3.2x.
    This company is the old “Ramco Gershenson” and this convertible preferred was last issued in 2011. A forced conversion can occur at 130% of 14.41 which is about $18.73 which would result in about $65 of common stock. In lower $51’s that would be a nice cap gain. But dont hold your breath as common is essentially same price as it was when the convertible was issued.
    This 7% plus issue is relegated to my small “higher risk” bucket. But at 7% and essentially uncallable, I like adding another “uncallable” to my stash. No reason to hold the call risk Saul issue when this one is here for me.
    Worth investigating if it fits your needs and profile. But be wary of “pricing games” here. At times today the ask was changing literally every second without any shares trading. I could have saved 15 cents if I had bought Friday, but I just kind of stumbled onto it the night before and needed to make sure I wanted to buy it….But, golf took precedence Friday so I couldnt look at it. Goes exD end of Sept.

    1. I like RPT…company has made many strides in streamlining it’s portfolio and if the shares remain weak compared to KRG, KIM and BRX, one of those could make an accretive buy of RPT.. I feel REITs are overbot as are pfds/bb bonds and h/y and there will be better entry points. Agree w posts Dec ’18 looms large.. RPT-D hasnt participated in the mania and seems a decent buy at a good price or if you need income. Bea

    2. So Grid, is your average hold time for an issue measured in days or weeks?

      Seriously, I always pay attention to what you’re trading in and out of even if I’m not always following.

      1. Bob, my mind changes too often to give you a straight answer lol.. Seriously though I originally intended on holding recent purchases of PPL and XOM, but one jumped over a buck and the other $2 so I felt compelled to sell. As PPX was cratering back into $25.30s and that is always a winning trade, so I went back to what I feel comfortable doing.
        But the I am collecting uncallables and really am planning on them being longer holds. IE, LXP-C, RPT-D, CTGSP, SLMNP types I own.
        Like Bea mentioned RPT-D has not had any real upswing, down 2.5% over past 52 weeks. It barely broke $49 on December sell off. Past 6 years it largely except for minor blips has stayed above $50. Just not a loved sector, however their finances are stable. Unlike most old convertibles it is at least within the next zip code over in owner optional conversion. Currently at $12.15 and a break even owner conversion is now about $14.80 ish.
        That will never be my plan. If it bounces again over $55 I may revisit. But largely this was a sideways trade of dumping BFS-C, getting a bit more yield and eliminating call worry here.

        1. Hi Gridbird:
          Am looking to find more detailed info on CTGSP including terms and conditions. I assume that the issue is from Connecticut Natural Gas which is now owned by Avangard, which is 81.5% owned by Iberdola, S.A.??? I did not notice in the 10-K for Avangard. Is there a prospectus filed with the SEC for the original issue?
          Is this a small issue illiquid gas ute cumulative QDI swan with a low call risk? 3.82% current yield @ $6.27/sh? Seems a little low even for the current rates.
          Thanks for mentioning.
          – Dave

          1. Issue predates Edgar’s creation, so a prospectus would only be available from the company.
            It is noncallable, so it will be around as long as there are investors.

            1. Justin, I actually read the prospectus a couple years ago. Damn that was an incredible deep internet dive to find through old historical links from past company data links through SEC. Wont do that again, lol..

          2. Dave, it was issued about 100 years ago. Connecticut Natural Gas is a subsidiary of Avangard (meaning they own the common stock of CNG, and thus control the election of the Board of Directors). CNG announced a tender a few years ago and upped the final offer to $10.25. Mysteriously of course some owners never received or knew about the tender. So about 16,000 shares still circulate after last tender. According to a public service commission rate filing document, I read the preferreds would be lowest rung A rating. And as Justin mentioned it was issued noncallable.

          3. Dave, you are correct about the chain of ownership. There is as typical anymore, holding companies buying out holding companies. I had to go back through UIL holdings which was a holding company that bought out another that owned CNG. Quite the trail….Actually there is either 16,000 shares or about 30,000 shares left. I havent quit figured that out after tendered scrapped more in. Many places state over 100,000 shares but that is flat wrong and outdated. So it is not easily bought.

      2. That’s an issue I have with the Owned Watchlists at TD…NO buy dates, they have to be entered manually. OF COURSE, we would NOT want to get in the way of someone trading with us as much as possible. I have not gotten the discipline to enter the buy date in as soon as I make the trade in Tax accnts. Somehow they do it all electronically at year end statements though!
        I am pretty good at estimating and I will say it will probably add up to a tidy sum given to tax man. This may make me start that habit up. Besides, it is compatible with my (small) compulsive disorder (really just a minor mind-nag My Precious)

        1. Dont worry Joel, its been a lifetime habit for me. Every since I got sent to the principals office in 5th grade busted for running a football betting scheme. I wanted to make money so I was the Bookie… quarter minimum, dollar max bet….. It lasted a month until my homeroom teacher got nosey and busted me, lol..

            1. Alpha, at 25 cent to $1, it was a small margin business. No room to share, lol..I see a sister preferred of yours RNR-C has dropped a lot in past week or so. Almost within reach of one of those “dare them to call”, but not quite. Because it isnt outside of the window to pay this divi and redeem all at once. It could have been fully redeemed long ago. One of the few “cumulative” financial preferreds left on the market. If it drops another 20-25 cents I may go in one more time. Its been a while.

              1. Grid, That RNR is a decent enough IG/QDI. I actually averaged up (never thought I’d ever do that) on a few holdings during last weeks sell-off. I can still talk myself into an IG-QDI with a 6%+ taxable equivalent as a LT hold. Of course, LT menas nothing if they get bid back out to the asteroid belt. Added more LXP-C with you (I can hear the clock ticking) and further expanded into KTBA when it still had a 27-handle. I’m guessing recent weakness in KTBA, which now seems to be ending was due to T letting the rating lapse and forcing some institutional selling. Not QDI as they’re old Bellsouth Debentures, but still over 6% and if rated again, hard to imagine it not being at least low tier IG.

                1. Alpha, their Senior Unsecured is Baa2. So it is in the Baa3/Ba1 range. Interest coverage ratio is over 3X so little worries payment wise (is if you were worried anyways, lol).

    1. Thanks, Alpha8 for posting…. I really wish I understood the rationale for these tenders from the issuer’s point of view…. This is a tender, not a call, but in that they have the right to call right now under a make whole provision and as best I can figure, the tender price is pretty much the equivalent of what they’d pay under the make whole, what’s the incentive of having the tender, especially when it is subject to the receipt of at least 500 mil of proceeds from a new issue? All academic musings I suppose but I’d love to know the issuer’s economic incentive to go thru the effort of tendering when they’re most likely going to call at essentially the same price…. The other interesting thing about this one is they have an option to call at par in 21 yet still they’re electing to pay 105.548 now….

      1. 2wr, I’m sure the MBAs were up late at night on this one. VTR may be anticipating the longer term benefits of locking in a lower rate. Similar company Welltower (WELL) is coming to market with an add-on $450M of notes due 2024 at 3.65% and $750M at 3.10% due 2030.

        11 years at 3.10%. Good grief. Of course if you’re in EU or JP, it’s a windfall.

        Speaking of windfalls, we pulled a whopping 800 peaches from our tree over the weekend. Good thing it’s a US tree.

      2. 2wr, Just in: Ventas just priced at 3.0%, $650M of new senior notes due 2030…at 99.506% of the principal amount.

    2. Jerry – good post. Like you I follow the bond market even thought I’m seldom a buyer of individual issues. But bonds are more pure than preferred and are better indicators of where credit markets are headed.

      The market is clearly saying rates are going lower.

      A periodic review of FWPs at SEC is a great teacher.

      1. Bob, Not too closely, but I had been tracking rate/risk tiers (by S&P or Moody’s) to create an over/under. It was especially useful in assessing call risk though many of those have now been bid up right out of my holdings. A 3-something% YTC for 5 years has too many alternatives to qualify as a hold.

        Will be referencing again your great post today as I’m looking to expand CN holdings. Still holding a lonley EBGEF position fully cognizant of what “should” happen, though am $/$ hedging against fixed noncallables. In combination this should reduce the volatility of the portfolio regardless of IR direction.

        With great caution, have been re-directing some firepower to commons including Res REITs and out-of-favor energy – one being ENB, another being an add to an existing position in BP which has been a home run (in around $30) and also RY and RNR-F about .25 ago. Also rolling the dice with you on STT-C for which the QID takes it over the top.

  33. OAS Analysis with prefered stocks. Anyone knows how to use it to calculate price stock will be called?

      1. I’m a little concerned about the common price of CNP (I also own the common) and how it weighs on this convertible. However, they are digesting and smoothing out a big merger – so I expect that they will get things together as time marches on. Lower rates are good for ute’s so at the worst, I feel like I’m getting paid 7% to tread water. Any quality ute is certainly not worrying me like a BDC or mREIT.

        1. The yield through Sept 2021 is attractive. Isn’t the price of the common staying above 27.25 in Sept 2021 the risk here? If you want to take that risk, is this the best instrument? Right now, you can sell Jan 2020 puts with a strike of 27 at the bid of $1.25, and get an annualized yield of 8.5%. That doesn’t get you yield for the next 2 years. But doesn’t it suggest that there should be a higher risk premium as you go out to Sept 2021?

  34. I’ve traded in and out of PPX with good results. I noticed yesterday that the price was down to 25.25 with over 20,000 shares dumped late in the day. The last div pay was made on 7/30, so there is little accrued there. Also, I have not found anywhere in the prospectus that there is a 30 day mandatory notice on redemption. Can they actually redeem at any time without any notice? Has anyone found anything different?

    1. Pete – p S-14 “Notice of any redemption will be mailed at least 30 days but not more than 60 days before the redemption date to each holder of Notes to be redeemed at such holder’s registered address. If less than all of the Notes of any series or any tranche thereof are to be redeemed, the Trustee will select the Notes to be redeemed.”
      Thanks to Grid and A4I, I’ve noticed there are more issues out there along these lines that are on the cusp of being callable but are only callable ON ANY COUPON PAYMENT DATE. PPX is not one of these, however, what’s interesting about those that are is the reward is higher for them making it past the first call… A4I pointed out NTRSP which has first call 10/1 and notice of call being 30 days… That means you’ll know by 9/1 and if it’s not called you have a 90 day window to the next call.. NTRSP has been trading in a narrow range from essentially the amount of the 10/1 coupon payment to a few pennies discount to it. There are others like this one out there as well that limit the call to coupon payment dates only.

      1. Thanks 2WR – I looked at the PPX prospectus twice and still missed that! I did see the discussion about calls only on the payment dates and have added that to the ever increasing list of things I need to check. Looks like some good opportunities possible. Thanks again!

        1. Pete, for me the game is different with this one…It isnt a meat on the bone for a call trade like the Saul issue I also purchased or the type 2WR looks for. This is strictly hoping no call occurs again and dump it onto fools laps above 26 as they chase the next interest payment. Or even flip on 30-40 cent price movements then reenter on dips. It will keep working until it doesnt.

          1. Yeah, thanks Grid I just did the same thing a few weeks back. and am looking to reenter without excessive risk. Still learning the craft but I’ve come a long way since January thanks to a whole lot of you fine helpful folks!

  35. NEWTZ – Anyone still own it???? It’s called for 8/29 for what will be $25 plus no more than about 31 cents in coupon payment for total of 25.31 and yet there’s a bid now showing for 900 shares at 25.75 with last trades of 25.87 and 25.80. Go figure….

        1. Having sold NEWTZ I thought about moving into NEWTL but quite honestly, am concerned about moving out longer on BDCs in general…. Reading the NEWT conference call, I may eventually do so because as they themselves point out, they seem to be a BDC in name only… As a group BDCs are making me anxious at this point in the cycle, even though I’m only in baby bonds not equity issues. I’ve not added to BDC baby bonds in about a year.

    1. FIDO had to be called for me to trade NRZ-A
      Bought 400 @25.85
      I requested free trades due to loss of time to call.
      I got 25 free trades expiring in 2 yrs
      A shout out to Bigbear for his advice.

      1. Hi Newman – My pleasure. Feels good to be able to contribute to this forum!
        Thanks for the feedback and shout out!!!

    1. Grid, What are your thoughts regarding the BML-L questions that were asked by D and Bill S in the Sandbox Page. Thanks, and I hope you are well.
      PS: If I were the 87 yr old owner of BFS, I’d tell them to “eat cake boys, I’m da boss” too.

      1. Bear, BML-L has a nice long history of trading action through the relative interest rate cycles. You have to throw out 2008-11 due to BAC economic troubles though which skew pricing. But clearly the chart shows as long end reaches lower, this issue stabilizes out when its floor yield starts to compete with fixed perpetuals. When short end starts to “heat up” and get closer to reaching its own floor yield it starts to appreciate. Of course we are at the point where its price support is based on near competing yield with fixed perpetuals instead of the heating up scenario.
        Though these types of issues were sent to market in a perpetual manner, the true intent of buyers was to play the “short end” of the market. That is why their “kickers” are generally a nominal amount like this one has at 0.50%. 2007 was a different era than now when issued. However the floor suddenly has value now with yields way lower than ever considered possible in 2007.

        1. Gridbird & D: Thanks for the analysis, much appreciated. With 10 months to go before retirement I am trying to learn as much as I can about preferred issues and BB’s. I appreciate your willingness to share your experience and knowledge, something that makes this site better than most for us “older” newbies.

        2. Grid – I suppose in a convoluted way this might be similar to the discussion of why EBGEF and EBBNF trade as close together as they do, but regarding BML-L what’s your opinion on its current price? Right now, in round numbers interest rates as defined by LIBOR would have to go up 125 basis before BML-L’s variable rate payment would increase and yet at 21 3/4 BML-L trades at a current yield of 4.60 which is imho at least 50 basis points lower than a reasonable rate for a similar perpetual…. So doesn’t that make BML-L too high by at least 1 point at this level in this environment?

          1. 2WR, I have watched these but never have bought. I have played the brothers by another mother types of GJO and GJP before though. But they cant be directly compared to though. What I have seen is these issues will never hit perpetual fixed yields. That really isnt their purpose. Their ballast seems to be at hovering a bit below fixed issues which is where they are at.
            The market clearly knows Libor isnt going up and has been heading down. So that isnt holding them up. My knowledge is very limited here. Just in observe and report mode here, lol. No strong insight at all.

            1. Grid – I suppose we’re really in the same boat as I too have never owned any of this type either. But I thought you’ve owned every piece of esoterica that’s ever come down the pike so I figured I’d ask. lol.. I too have owned and have elected to continue to own GJO even though there’s very little rational reason to own it in this environment other than it probably being much cheaper than owning it’s underlying bond, but at least it has a maturity…. that’s what makes if from another mother imho.

        3. thank you for the long view perspective, Grid. and thank you for asking the question, BigBear. taking it all in and leavening with Tim McP’s perspective of basically no need to rush, maybe better to see how it shakes out in the near term before making a move.

      1. Good report. Even with oil falling, I have no issue being very long the NS and ET Preferreds. Both are firing on all cylinders, like the pipelines. Of course if oil keeps going down, prices will be volatile. Nature of the beast.

  36. There is a swap opportunity for First Internet Bancorp. I sold INBKZ at $26.30 and bought INBKL at $25.70. Both at 6.0%. But, INBKL has a higher floating reset rate of LIBOR + 4.85% effective 9/30/2021.

    1. Larry – Though I did not buy into INBKZ, I have been adding to INBKL and using the same mentality to buy the three highest coupon preferreds for CUBI, however, for this to work for you, you have to be willing to accept the yield to call as good enough for you because the relative high LIBOR + rate for INBKL and for CUBI-C, D, and E pretty much should guarantee they will be refunded at first call date no matter where interest rates will be at the time because, barring a credit event for either, INBK and CUBI ought to be able to get a substantially better LIBOR + rate than what exists for these 4 issues…Both have proven that with newer issues, INBKZ being the newest example….. If you think of INBKL as a 9/30/21 piece of paper, 4.85% yield to that date is pretty good!

      1. 2whiteroses–I agree that INBK has demonstrated that they should be able to get a better LIBOR + rate at the earliest call date for INBKL. But, given the current rates of new issues, I am content to live with the yield for now. And, I have almost 2 years to look for an improved investment opportunity.

  37. $NSS Tim, I see you have this in one of your portfolios. It is the only NS issue that is currently subject to call (the rest are 2021 or later), and it’s trading at $26.03. I am thinking of selling mine. What are you doing? Thanks, as always.

    1. RE: NSS

      When you have an issue trading that far above par and past call there is a reason. In the case of NSS it’s credit risk. The company can’t readily call it. If they could they would. In the event they find a way to call, you lose what’s above stripped par.

      So, with NSS you have the benefits of both call risk and credit risk. Size your position accordingly. I personally have reduced my holding in NSS by 80% of what it once was.

    1. o–looks like they are getting this one taken care of–the future should be interesting. RFTT not due until 2024.

      1. Are they? For sure? Would be a no-brainer at ~ 23, and arbitrageurs would have pushed it much higher, I’d assume. OTOH, my “alert” from Fidelity simply said it was “scheduled” to be redeemed, not that it would be. AFAIK, no news from the company. At least they made the last quarterly payment on RFTT…
        If anyone knows more, please let us know.

        1. Typically, when a company makes the decision to redeem a bond, the registrar is notified, after which a notification is sent to the transfer agents, brokerages etc.
          The fixed income desk at Fidelity verified that they have received notification (directly or indirectly) from RAIT of their intention to redeem the notes. It is possible, but rare, for a company to default at this point.

    2. Congrats to all those bold enough to buy this one on spec and clip the 2+ point gain…the boo-birds aren’t happy today, that’s for sure.

      1. Citadel–I sure wasn’t one of the buyers–not in my wheelhouse, but good for those that did.

    3. are they in default?
      I am not showing the February interest payment being made.
      and their IR page is a mess, and they are months late on their SEC filings.
      i have a feeling RAIT isn’t going to pay this one and file for bankruptcy.

      1. According to my own statements, RFTA was paid in February. The company, I believe, is in the process of “going dark”/”going private”. The reverse stock split and the shopping spree by Frischer to add to his position of common shares are all intended to reduce the number of shareholders to meet the SEC 300/500 threshold. As of 3/19 there were 345 shareholders. I suspect they are below the threshold now and are waiting to redeem the “19” notes before filing the necessary forms (15 &25 , I recall).
        The company has been delisted into the pink sheets were it is now resting quietly. This the fate of nearly all companies that “go dark”. There are multiple advantages for doing this. Frischer has an interesting background in private equity and real estate. I am speculating, but I believe the company is going to dispose of all of its b+m assets and shed their REIT status. They seem anxious to hang on to the securitizations and loans so I would not be surprised if the company morphed into a CLO manager/BDC not unlike Saratoga. A merger is also possible. They will have to redeem the “24” notes in order to recapitalize, but things are moving along in an orderly fashion.

        1. So expect an early redemption of the 2024 notes?
          That bond is trading at just over 15 bucks. That would be a massive gain on a fixed income instrument.

          1. As I see the situation, and if my hunch is correct, “going dark” serves to keep the price of RFTT suppressed. This enables the company to buy the shares on the open market at a deep discount, then an early redemption. I’m looking at the “24” notes as well , and waiting to see if they file the “going dark” forms. These are smart investors with a carefully conceived plan with numerous scenarios that have been game played on the chalkboard. They have come this far with plenty of blood, sweat and tears over the past 20 months, so to make this work, the “19” and “24” notes have to be redeemed. Otherwise the entire strategic restructuring is an exercise in futility. It is a fascinating drama to be sure.

    1. I see BBTPRD and BBTPRE are experiencing selloffs with volume with 11 days to exdiv.
      I tried to buy , but Fido said uh uh..symbol incorrect.
      However, i decided to let it go since i’m a little fish in a sea of sharks.
      I planned on buying the D issue ar 25.32 ( .356 div 8-13-19)
      so no real loss if called. Maybe their lowball issue last week will use proceeds to call these issues.
      Anybody concur?

      1. Same issues at Merrill Lynch where BBTPTD symbol registers as incorrect. Merrill researched and found the D preferred has been called for Sept 1. Guessing E was also called.

  38. In case useful to any holding cash at TDAm:
    PVOXX Money Market is available as a NTF (no trade fee) fund. As of yesterday, 2019 07 31, PVOXX’ seven-day yield was 2.39%. TDAm’s NTF funds info conveys that shares of NTF funds must be held for six months to avoid a hefty $50 fee, except for a handful of fund families. Federated is included among the exempt. Thus, there should not be a redemption fee for PVOXX. I did not spot a redemption fee assessed by Federated’s PVOXX Prospectus (provided by TDAM).
    Although TDAm’s PVOXX info conveys minimum investment of $500K, it may not apply. One may want to try and see. I entered a buy order for peanuts and it took my order …. so TBD (I will report).
    BTW, the Citi short term note that was 3% coupon and monthly payer that some us bought at TDAm was redeemed yesterday.
    PVOXX at Merrill requires an initial 100K investment -thanks to Nomad that brought up in a post here back in Feb that PVOXX was high yield MM at Merill.
    Best regards,
    No. 12

    1. Aarod,
      I guess that you will realize this when you check your PVOXX “peanuts” trial @ TDAm, but as I also own it, I can share some info:
      – No minimum required.
      – No “commission” when buying, but you pay $1.0003 for each $1 (that is about $3 for every 10,000). So one has to do the numbers of what yield you receive if investing small amounts for short periods of time. This $1.0003 is not explicitly noted, so it may surprise you if you assumed it would be a real par mm.

      D

      1. daniel, thank you for that info on holding PVOXX at TDAm. Share price at Merrill is the same – 1.0003. In Merrill, I am sort of doing my own sweeps from/to PVOXX. Since I started PVOXX in Merrill, I’ve done three redemptions and share price was 1.0003 … so not reduced.
        Nomad may comment as he has much longer experience with PVOXX at Merrill. So TBD at TDAm.
        Main point WRT PVOXX at TDAm is: AFAIK they do not charge the $49 fee when holding PVOXX shares for less than six months as they would for other NTF funds.
        Best regards,
        No. 12 (wishful thinking)

  39. Hello 2WR
    I agree with you. As with the old FSC, management is so bad it should be classes as criminal. I think there should be an SEC-enforced fiduciary standard applied to institutions who sell securities to protect investors from such malfeasance. Yeah, I know, I’m naive.

    1. ATHENS, Greece, Aug. 01, 2019 (GLOBE NEWSWIRE) — TEN, Ltd (“TEN” or the “Company”) (NYSE:TNP) today announced the completion, on July 30, 2019, of its full redemption of its $50.0 million 8.0% Series B Cumulative Redeemable Perpetual Preferred Shares which were issued on May 10, 2013. The Series B issuance highlighted TEN’s ability to access alternative pockets of growth capital, at competitive rates. TEN’s track record in rewarding shareholders with uninterrupted and healthy common and preferred stock dividends through market cycles, enabled the Company to tap this pool of capital as TEN embarked on its biggest expansion phase, with the building of 19 or 20 modern tankers under long-term accretive contracts.

      “In addition to the positive rate environment for our fleet, the redemption of the Series B preferred shares will result in $4.0 million cost savings straight to our bottom line. This significant milestone highlights TEN’s ability to raise competitive capital, at all times, for growth. Our 19-fleet expansion program is close to completion while our total fleet has $1.2 billion in minimum contracted revenues with an average charter duration of 2.2 years,” Mr. Nikolas P. Tsakos, President & CEO of TEN commented. “Our strong balance sheet allows TEN to explore additional accretive growth opportunities and take advantage of the positive rate environment that is shaping up. The fact that the Series B traded at or above par for most of its life underscores that the bond created between TEN and its investor base remains solid,” Mr. Tsakos concluded.
      https://www.marketscreener.com/TSAKOS-ENERGY-NAVIGATION-14634/news/TEN-Ltd-Announces-Redemption-of-50-0-Million-8-0-Series-B-Cumulative-Redeemable-Perpetual-Preferr-28997405/

    2. DETROIT–(BUSINESS WIRE)–TCF Financial Corporation (TCF) (NASDAQ: TCF), today announced the successful closing of its previously announced merger of equals in which legacy TCF Financial Corporation (Legacy TCF) merged into Chemical Financial Corporation (Chemical), with Chemical as the surviving company. Upon the merger closing, Chemical was renamed TCF Financial Corporation, and its common shares will trade on The NASDAQ Stock Market under the symbol “TCF” beginning today.

      “We are pleased to close our merger ahead of schedule and excited to begin operating as one organization”

      Tweet this
      Pursuant to the terms of the previously disclosed merger agreement between the companies dated January 27, 2019, each share of common stock of Legacy TCF has converted into 0.5081 common shares of new TCF, and each common share of Chemical is now a common share of new TCF.

      In addition, each depositary share with respect to Legacy TCF 5.70% Series C Non-Cumulative Perpetual Preferred Stock has converted into a depositary share with respect to new TCF 5.70% Series C Non-Cumulative Perpetual Preferred Stock, which will trade on The NASDAQ Stock Market under the symbol “TCFCP” beginning today.

      “We are pleased to close our merger ahead of schedule and excited to begin operating as one organization,” said Craig R. Dahl, TCF’s president and chief executive officer. “With complementary banking platforms and the additional scale created through the merger, we are uniquely positioned to provide a more robust product set to a broader customer base with limited overlap and disruption.”

      “As we bring together the best of both banks, our shared strategic vision and culture will generate value and opportunities for our shareholders, customers, employees and the communities we serve,” added TCF’s executive chairman, Gary Torgow.

      Customers Will Not Experience Any Immediate Changes to their Banking Relationship

      As a result of the merger, customers will not experience any immediate changes to their accounts, loan payment terms, access to account information through mobile and online banking applications, use of debit cards or access to ATMs. Initially, TCF Bank will operate under both the TCF and Chemical Bank brands. The company expects to combine its banking technology platforms by the middle of 2020 without any disruption to customers. TCF Bank customers can find additional information at tcfbank.com/betterforyou and Chemical Bank customers can visit chemicalbank.com/betterforyou.

      Combining the Best of Both Banks

      The combination of Legacy TCF and Chemical creates a premier Midwest bank, with the scale to deliver best-in-class products and services, banking experiences that help customers achieve their financial goals and the ability to invest in leading-edge digital banking solutions that make banking more convenient. Customers of new TCF will benefit from the bank’s strong community banking and wealth management capabilities, large deposit franchise and expertise in wholesale lending on a national basis. Headquartered in Detroit, Michigan, TCF has $47 billion in assets, $35 billion in total deposits, more than 500 branches across nine states, and a top 10 deposit market share in the Midwest.

    1. Rida Morwa
      Special Bargain: Ladenburg Thalman 7.75% Baby Bond Yields Almost As Much As LTS Preferred Stock
      Ladenburg Thalman Financial recently issued a baby bond (symbol LTSH) maturing in 2029 with a coupon of 7.75%.
      The fact that its yield is almost as much as its preferred stock (symbol LTS-A) is highly unusual making LTSH a mispriced bargain.
      The yield to maturity of LTSH is very high given the level of safety that comes with this baby bond.
      LTSH is protected by a huge LTS’ preferred stock issuance as well as a very large cash hoard…
      https://seekingalpha.com/article/4278742-special-bargain-ladenburg-thalman-7_75-percent-baby-bond-yields-almost-much-lts-preferred?isDirectRoadblock=true

    2. Good catch, 730. Liquidated my ALL-E as I’m up huuuuge and don’t want to be caught in my short pants when the tide goes out on this one.

  40. MFA-B is trading at $25.22 and has .31 in accumulated dividends. It’s a safer residential mortgage REIT pfd tethered near par as it is well past call. The stripped price is $24.91 and the current yield is 7.43%.

    1. alpha8, always amazed how many of us here have similar thought processes. I bought MFA-B at $25.22 right at the close today.

      Even if called tomorrow with the usual 30 day notice, the accrued dividend plus par exceeds the price I paid today. A no-brainer safe investment – won’t lose, only unknown is how long I can ride this gravy train.

      1. Inspy I’d like to think we could just sit in MFA-B for a while but the market may try force us out with a high price before it goes ex in early September. When monthly payer VER-F did the partial recall (only 10%) I doubled down that morning – but now that is also climbing out of the reasonable hold zone but with the near par entry I may continue to ignore the price and focus on the 6.5% dividend until called.

        1. I also have a position in VER-F. And I think the same as you – if my cost basis is close to par, I look at the income stream, and not too concerned with the stock price.

          But like many her have stated, if the stock price goes way up, the temptation to cash out is high, especially if it is past First Call.

    2. US ISM Manufacturing Jul: 51.2 (est 52.0; prev 51.7)
      – ISM Prices Paid Jul: 45.1 (est 49.0; prev 47.9)
      – ISM Employment Jul: 51.7 (prev 54.5)
      – ISM New Orders Jul: 50.8 (prev 50.0)

    1. And naturally, now that it’s completely risk free for anyone willing to attempt to buy for the 30 day holding period, Fidelity won’t even let you buy online…maybe if you spend 15-20 minutes on the phone you can, and then another 10-15 minutes if you want to change your price, but not online…. grrrrrrrrrr

  41. For those accumulating DCUE. 7.25% DCUE Dominion Energy BBB- ex div today triggering selloff below $100 par. Picked some up at 99.77. It appears to be at least partially QDI. Quantum lists it as DOMGL

    1. Nice use of the site!! I’m full up right now and may have investable cash at some point this year. Had passed on it earlier. Would require monitoring, and more diligence for me, I have stayed away from converts as crystal ball is cloudy. Will try the RSS feed thing and maybe learn something!

      1. P, I had to check my data pull on this one today. In the stratosphere and throwing off QDI divvies. Keep those cards and letters coming…

  42. NEWTZ call date set for July 29th –
    Not being quick enough on the trigger to take advantage of the great headsup posted here upon the announcement of NEWTL IPO, I just finished getting out of NEWTZ today. Market’s 25.35-25.42 right now and yet the best a holder will get at call date = 25.3125. Go figure…

    1. Also trading at Etrade, but still not at Vanguard which always seems to be a day or two behind.

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