READER INITIATED ALERTS

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319 thoughts on “READER INITIATED ALERTS”

  1. What do you think of DCUE converting to D shares in just two years, (with a substantial dividend cut of 33% on it’s common). Is there still value in the bond if it was bought at par? Would appreciate any comments.

    Thanks,
    Leslie Joy

  2. SOCGP is trading higher today with really high volume. I was able to sell for $38 which is a forward yield of around 3.95%. Just wanted to let others know in case they wanted to unload.

    1. Saw that on Marketwatch. Wondering about the implications for D and DUK; perhaps our Grid expert can help.

      1. CR, Mr. Buffett is way above my pay grade! But reading your article summarizes clearly what is a trend and why I have long been “Mr. Ute Preferred”. After branching out their investing tentacles, many utilities are running like a little kid to hide under mommies dress. That meaning, the safety of “regulated returns”, with a monopoly captive audience as customers and escaping the rough and tumble free market competition.
        How many “real world” businesses can go bankrupt twice and the common stock shareholders dont get wiped out either time and preferreds paid in full?
        Only with PCG and the fantasy land of “regulated utility land utopia”. 😀

  3. Regarding K-1 in IRAs:
    We just received info from TDAM regarding three of our IRAs and UBTI:
    – The TOTAL of all IRA accounts in aggregate (wife and me) was $1,000+. Forms were filed by TD AS REQUIRED.
    – Form 990-T, Sch D, Form 8949 and Form 4797 for EACH account.
    -They are notifying us of the liability that will be removed from each of these accounts Line 54, of 990-T, so have liquid cash there by July 15, or penalties and interest may be assessed by IRS.
    – Taxes paid from these accounts will be taken as a NON-taxable distribution, nor be reported later on 1099-R.
    – Of course, there are additional details.
    – I have not examined the amounts of percentages, but will. We did a filing of this, but I am thinking that this will supercede our recent filing.
    – The Forms are signed off by PriceWaterhouseCoopers.
    Interesting and welcome!
    I lived and worked through the three year, phased-in mandatory and ‘computerization’ of Brokerage Statements and Compliance for required computations some decades ago. Even Gain/Loss keeping was a seasonal melee and a client interaction nightmare (and NO VACATIONS MAY BE SCHEDULED!). I know the electronic brokerage we all take for granted now blossomed into an effective and universal tool because of that.
    Looks like this is a further tool that is a by-product of that previous required regulation.
    Can’t help but make a comment based on REAL experience: Boy, well thought out regulation with deadlines may have benefit.
    I’ve been saying for a long time that computers can do most of this better: medical, govt budgeting, complex modeling and many other areas. I think our kids are going to push for this type of transparency, accountability and regulation as a given. This is a ray of hope for me in an age of little accountability.

    1. Regards to my post of about one hour ago. I see Malcolm recently had posted a similar posting to mine. I have done a quick look at the details and belive that the details are not accurate with TD’s reporting. Like the Canadian dividends and qualified dividends mishandling this past season, this too may be a matter of investors ‘holding the feet of the brokerage to the fire”…again. May be another ‘released before perfected”.
      When I looked at our numbers just now, the basic first look seems wrong. Eventually, the system can work but is still not groomed and the phone brokers are going to be useless. The brokerages WILL need an inside expert on these matters as Malcolm says.
      I suggest Price Waterhouse step in since they may hold some kind of liability from alot of accounts? Monies are going to be removed from accounts July 15.
      I’ll dig in some more tom. with fresh eyes.

      1. Joel

        It sounds like TD Ameritrade is several years behind Fidelity and a few other brokers in getting its act together on this.

        I remember there was a similar type outcry on message boards when Fidelity first started filing these forms on tax deferred accounts that had K-1 holdings. FWIW, they also farm it out to Price Waterhouse Coopers.

        I looked into it a lot back then (being a former CPA myself). And while a lot of it is automated (PWC I believe operates one of the online K-1 Tax Package support sites), if you had carryforward losses or K-1s that were sent to you directly and not to your broker, there can be issues. Which is why Fidelity now gives you a notice in advance telling you your account may be subject to this, and to please send in any information such as carryforward losses, etc they may not have. They do this well in advance of any filing deadline (in the spring now while they file in the fall)

        After educating myself on all the details, I am convinced Fidelity is handling it 100% properly and it was only a matter of time before the IRS forced other brokers to comply with the law.

        FWIW, that first year for me of Fidelity filing, because they gave me very little notice, resulted in a payment out of my account for about $900. Then they did an amended filing once I went back years and provided K-1s and a spreadsheet on carryforward amounts which got the $900 or so returned to my account about 6 months later. Yeah, I moaned about it to them enough that they did give me free trades back then to appease me.

        I really don’t think this is something the brokers want to do – but is something required by the IRS

      2. A family member got a 990T tax form from TDA with a very large bill. Turns out the guys they hired at KPMG couldn’t find the purchase price of a preferred unit like ETP’s when it was bought otc and match it up to the sale proceeds when it was sold with the NYSE ticker on the exchange. So of course they assumed we got it for free, zero basis, and wrote up the tax return as if the whole proceeds were UBTI and owed some huge amount of tax.

        I spoke to the TDA tax group and they quickly agreed and recognized the error and said they would put in for a corrected return to be made and any payments would be put on hold until that process was done.

        In short – if you get one of these, review it carefully and call them promptly if there are any errors. If not, within about two weeks they will file their return without your permission and take the funds out of your IRA and send them to the Feds and at that point correcting things will be much more difficult.

      3. Joel A., I talked to someone else who passed my info on to their “Tax Department” and I was informed they would not call me back but would post a message in my account inbox. Still hasn’t happened. I was told my account was flagged to not pay the 990-T.

    2. This is a manual process currently in some respects, but could have been automated with a few small changes. PWC dominates the industry and prepares the returns of 98% of the publicly traded partnerships that produce UBTI, so they would be in a place to know.
      (though what is annoying is that the UBTI amount is not exported on the file layout for the export of K-1 information, something they don’t do to keep a stranglehold on that very lucrative market.

  4. CoBank ACB Series G (CBKLP) dropped below redemption value, currently 99.75 yielding 6.06%. I perused their financials and they made no mention of any intent to redeem. They have been increasing their cash drastically of lat.

    1. Yes. I was surprised to see that my limit order to buy executed. I’ll hold.

      This is a 6.125% issue at par, so current yield is slightly more than that.

  5. Anyone know what happened to the new SAC ? I thought it would show up on the 24th- nothing at Schwab / TDA, or any charting companies.

  6. GARS will be merging with PTMN. Seems like a win-win for both BDCs because of expense reductions. I would imagine that KCAPL (pfd of PTMN) may benefit slightly from the merger.

  7. For those who didn’t sell earlier (or are far more adventurous than I am): KTP, the Structured Products CorTS, J.C. Penney Debentures, 7 5/8% Certificates, which was delisted from the NYSE on June 4, is now trading again. It’s OTC and has the ticker COTRP. There’s a fair-sized bid at $.30 that has gotten some interest (maybe speaking simplistically that equals the bond itself at $1.20). And a few shares were bought just now at $.85. Looks like the variant JBN will trade OTC as CBTRP (no trace of PFH or JBR yet).

  8. About time…
    Microsoft Excel
    @msexcel
    Announcing STOCKHISTORY, the newest member of the #Excel function family. Easily pull historical stock prices into your workbook to analyze your portfolio! Get started: https://msft.it/6018TlByp

    1. Justin, Im too old to learn anything new…Yahoo will show daily stock prices of issues going back 20 years, so I just use that.

      1. Gridbird: “Im too old to learn anything new…”
        I tell my wife that all the time but it never gets me off the hook 🙂

        1. Bill, I have a long time GF of 13 years. She doesnt like it either, but she doesnt have the power over me like a wifey has. The joys of being retired is not having to use the brain unless one wants too. I guess 55 isnt too old to think, but unless it interests me, I am not expending the effort. And most things dont interest me. Investing wise this serves me good as I dont try to get too smart, just stay in my lane, lol.

      2. I would be using it to find the low price on multiple issues going back to the GFC to see what new lows could be if we have a double dip market.

    2. I hope I’m never too old to learn something new 🙂 But looks like limited only for “Microsoft 365 Subscribers” and not for those with actual Office suite. 🙁 Guess I’ll stick with Google Docs/Sheets.

  9. From Friday, Canadian Press Datafile alert

    REDUCED DIVIDENDS

    City Office Reit Inc .15 from .235

    Invesco Mortgage Capital .02 from .50

    New York Mortgage Trust .05 from .20

    Ready Capital Corp .25 from .40

    1. MONACO, June 23, 2020 (GLOBE NEWSWIRE) — Costamare Inc. (CMRE), announced today the execution of two new loan agreements for an aggregate amount of $140 million, which brings the refinancing program initiated at the beginning of the year to a successful conclusion. Since January, the Company has entered into new financing transactions of over $435 million and has extended debt maturities of about $240 million.
      Management Commentary
      Gregory Zikos, Chief Financial Officer of the Company said:
      “The latest transactions form part of our strategy of proactively managing our balance sheet and liquidity position, ensuring a smooth debt repayment profile. As a result of the latest financing arrangements we have no meaningful debt maturities until 2024.”

    1. mcg – WESCO’s newly created 10.625% Series A Fixed-Rate Reset Cumulative Perpetual Preferred Stock?

        1. So if I understand this correctly this was issued to complete the purchase of acquired company and issued as partial payment to current owners of the acquired company. Ala, the SPLP-A/SPLP-T method from a few years ago.
          If so these shares will eventually spill into the market by shareholders wishing to not be apart of this.

  10. 6/22 hard copy Barrons has an article offering Preferreds as a favorable investment with recommendations. & Market View section article casts favorable view on preferred.

    1. kaptain lou….newbee here with 2 questions:

      1. Did major banks have preferred cuts along with common cuts in the prior financial crisis or was it just common shares only?

      2. Do common shares always have to be cut to zero before preferred shares can be touched?

      1. In the Great Recession, most banks cut their common dividends to
        one cent per share or close to it but paid all preferred dividends fully
        and on time. The exceptions were the few big banks that imploded such as
        Lehman. On those common and preferred went to zero as well as the value
        of the investment. So, in terms of the number of banks that issue preferred stocks, there was generally not a problem with preferred stocks. However
        Lehman based on liquidation preference amounts only was a significant issuer of preferred so on that basis it was a blow to the preferred market. Along with a. few other “large” issuers. I’m going out a limb and say that most banks do not have a planned strategy of not paying preferred dividends. They intend to pay them even if they have to reduce the common. Also, banks are regulated and they have to get permission so to speak as to what they can issue.

        1. Of course many took “TARP” monies to survive and who knows who would have suspended (or even went bankrupt) without that giant band aide. Wells didnt want or apparently need TARP but it was forced on them to take. BAC and Citi were in very dicey situations. One never knows, but they sure wouldnt skip payments unless it was necessary.
          Common dividends must go to zero before a preferred is suspended. Of course it can be done simultaneously though. Many smaller banks did have their preferreds blow up and become worthless. And a few are still on OTC trading for pennies after their 08-09 blow ups.

          1. Grid,
            No doubt TARP money played a role in keeping the financial system afloat in the GR. Also it’s never been clear to me why Lehman was sent down a black hole by the Bush ad ministration while others were saved (such as Merrill Lynch). Decisions of all kinds are sometimes hard to understand. Both parties do things that I don’t understand when things are on their watch.
            I’m in my 70s but my life has borne out the fact that at least once a generation (say 20 years) the United States banking system has experienced a major crisis. Consider the savings and loan problems in the early 1980s.
            It seems to me that there is always a significant degree of self infliction that
            causes these. And then to keep things rolling, most times Uncle Sam intervenes.

              1. newbee, Grid and Razorback did a nice job of answering your questions and everyone is normally very helpful here on this board. Lehman and Bear Stearns ended up going under, but many other companies were bailed out by the TARP funds. If I recall correctly, Citi went down well into the low single digits. The larger banks did not go under, but many smaller regional banks did.

                Just to add a little more here, most of the bank preferred stocks are “non-cumulative”, which basically means if the banks suspend the dividends on their preferreds for a period of time, the back dividends do not need to be repaid. Not saying they will do this. However, this is why most of my holdings are in “cumulative” preferred stocks, which means if the company suspends the dividend, they generally must pay back the preferred dividends in the future – of the company is still solvent.

                1. Kaptain, Something to think about:
                  I was just talking to an associate regarding the concept of ‘cumulative’. They were confusing bond/interest/arrears with the cum concept in prefs. I think everyone here gets THAT, but the pertinent points were:
                  – If cums are suspended then eventually ‘caught up” the gathered payment goes to whom ever holds the pref at the time the Board decides to make it right. They get ALL of it, it is not divvied up among those who had held it at some point. (nor are bonds)
                  – If you want a claim, you have to hold through the ‘bad period’ or buy back at some point. That may be a ride thru a very sever price drop, no income for you (stranded capital), possible wipe out in bankruptcy and exceptional fortitude while waiting for a work through over a long term.
                  Most pref holders do not do that, they sell, take losses and seek new income sources with the remaining capital.
                  The BEST play on cum prefs are in the workout phase (buy cheap) as Grid has described here very well with Calif Utils. and hope to get the big Cum Payoff. It still takes strong guts to read a judge and settlement nowadays.
                  Cum MAY not mean as much as some investors may WANT to believe. The onus gets placed on the investor and it can be wrenching.

                  As a second general comment: I think that the cramming of tranches that is going on at a reckless pace is looking like potentially squandered capital. It can not be put to work. It is a temporary security blanket at best. I don’t think rating agencies can keep up with it OR be accurate during this time of balance sheet strife. There are two sides to a balance sheet. Look at the recent issues being posted just this past week. Garbage. What is the REAL situation that has changed for these companies? Is it market opportunity to be seized with a capital raise or leverage in the face of fear? I wouldn’t want to live that way…nor would a lender allow me to…

                  1. Joel, I may be missing out on some great 7% bank opportunities ( I bought a very small amount) now, but Im just not trusting them. It may be pure emotional and incorrect too, I admit. But, I do know with 100% certainty you are correct about the ratings..They do lag considerably behind the current state of any company, and always have.
                    I used to hold little regard in difference between cummulative and non cummulative as the rating agencies have suggested little material difference. But, even though I have never had a suspension, I am more in Lou’s camp and value it now. I have witnessed enough over time now to see that this can matter.
                    Newbee, Banks in general may be fine. But being how many times over leveraged they are by their inherent nature of the business, one has to assume certain things in trust on the numbers a bit more, than say a utility typically. Im just not “there” in terms of absolute trust be it right or wrong.
                    Banks/Financials (including insurers) comprise almost 75%-80% of the preferred market by dollar amount. Im about 18%, so I am directly almost inversly proportional to the market in terms of amounts. But this isnt a recent thing, and generally dont get much above it anyways.

                    1. I agree with Gridbird and Lou on staying away from banks but I tend to like the insurance outfits a bit more because by nature they are conservative businesses (unless they recklessly venture in some other esoteric businesses e.g. AIG). And they are well capitalized due to regulatory restrictions. But that’s my 2 cents

            1. razorbackea : I wonder what the deal was with Lehman too. I am still holding a $1000 7.0% Lehman Senior Bond from the time. Twice a year the bankruptcy court sends a little (very little), money to my Schwab account. So far I have collected $510. The first payments started about two years after bankruptcy and they were like $50-$60 twice a year, but the last payment was only $3.50, so the well is apparently running dry, must be down to selling the office furniture. The market value of the bond is now estimated at $10.00. Doubt Schwab could even sell it for me if I asked.

    2. Thank you Kaptain. Had np downloading article even though I’m
      not currently a Barron’s subscriber.

    1. PG&E (NYSE:PCG) has filed a prospectus for $4B shares with underwriters over-allotment of another $400M shares.
      As part of a reserved allocation program, underwriters have reserved up to $1.25B of common shares for sale to certain investors who beneficially own, together with their affiliates, at least 1M common shares as of 5:00 pm ET on June 19, 2020.
      Concurrently, the company is offering equity units to generate gross proceeds of ~$1.23B or $1.35B if underwriters exercise their over-allotment option in full.

  11. Bank Dividends. With all the talk about the Fed Stress Test, there are concerns about bank dividend cuts in the news. So how safe are the bank preferred shares dividends? Or is all the talk about common share dividends?

    1. Banks would have to cut the common divi to zero before they could cut the pref divi. Banks really, really don’t want to eliminate dividends but if it’s a matter of survival they will do so in a heart beat.

      This is why yields on non-IG financial pref have gone up as they have. This is where non-cumulative starts to matter.

    2. WASHINGTON—AmTrust Financial Services Inc. and its former chief financial officer agreed Tuesday to pay $10.5 million to settle allegations they failed to fully disclose how they estimated losses from insurance claims.
      The civil settlement with the Securities and Exchange Commission resolves an investigation that New York-based AmTrust disclosed in 2018, at which time it had been under way for nearly five years. (WSJ)

      1. Someone please explain this is good for the company or bad? I own a small position on AFFS, nothing special, but I would like to understand how this event can affect their probability of default. Thank you in advance.

        1. Probably a nothing burger. $10.5 million is not a huge amount, and the resolution of the investigation is a positive.

  12. PCG post bankruptcy credit ratings from Moodys are out. And they are fragile and lower end of my projections. Preferreds will be rated B1. Stripped out yield about 5.8%. SCE-L was running past week with essentially same yield the past week so I bought up enough to replace my PCG preferreds. And SCE is considerably stronger at Ba1 and hold co actually increasing common stock divi last quarter. So I largely am out of PCG preferreds and took my nice generous profits over the past few months and bowing out….
    Notice the SENIOR SECURED debt of PCG is BBB-. Most senior secured debt of most utility subsidiaries is in the low A range. A most fragile set up with all the additional debt dumped on it post bankruptcy.
    At the same time, Moody’s assigned a Baa3 rating to Pacific Gas & Electric Company’s (PG&E or utility) senior secured debt. PG&E’s secured debt includes approximately $9.6 billion of reinstated senior secured first mortgage bonds, approximately $11.9 billion of exchanged senior secured first mortgage bonds, and approximately $5.9 billion of new, incremental first mortgage bonds. Moody’s also assigned a B1 rating to PG&E’s $252 million of preferred stock. The rating outlooks for PCG and PG&E are stable.

    Moodys has a write up issued Monday on this inside their Website.

    1. Thanks George–not sure why they are at it again–they just did one last week–whoops – last month.

  13. Am I making a mistake, but it seems that GAINM is a pretty good option right now. It is mandatory redeemable on 9/30/2023 and trading a tad below par. Seems like not a bad place to park some money in a self-directed HSA. Thoughts? That makes for a 6.25% yield.

    1. If there is one BDC you can invest in, this one would be it. Asset coverage is 2.8x as of 3/31 (when many BDC already wrote down lots of loans) and easily one of the best run BDCs with rising NAV over the years.

  14. Sold 1800 CTV yesterday at an average of 25.39 .
    I did not wait for dividends because of tax issues.
    I have a Cap loss big enough to accomodate the Cap gain.
    Had i waited for the Div, then i would have been taxed on it.
    BUT>>>>>
    My Fidelity clawed back 401 shares of the 1,000 shs i sold yesterday.
    Something about Journal entry or something.
    I guess they had designated the 40% of my shares before i sold them.
    My TD account shows nothing on the 800 i sold, but TD is slow that way.

    1. Got called on ~40% of the CTV bought on June 11, which was after press release announcing call (for future reference). As I understand it, will be getting 25.43 per called share on 7/1. Retirement account – taxes not an issue.

      1. Initially it was thought 20% i.e. $5 will be paid back to everyone. Now it seems it is 40% of the holding, the math would have been 20% of the holding if they followed this method of redemption. I am wondering from where did we get 40%?

        1. My Fidelity IRA is showing the CTV position today as two separate positions with an approx ratio of 60/40. I am assuming the 40% is being redeemed at on July 1st.

    2. Hi Newman
      Re: your comment
      I have an account at TDA. Every trade is posted before I can even bring up the ‘transaction’ screen,
      which is basically instantaneous.
      I am sure that by this time you have the answer and I hope it is
      positive.
      Thanks

  15. New Issue Sr Notes – Saratoga Investment Corp – 5yr / nc2 – BBB

    Issuer:

    Saratoga Investment Corp Inc

    Security:

    Fixed Rate Notes —Due 2025

    Exchange:

    NYSE – SAC

    Base Deal Size:

    $25 million

    Over-allotment Option:

    15.0%

    Initial Offering:

    100% principal amount

    Credit Rating:

    Par Denomination:

    BBB (Egan-Jones)

    $25

    Face Coupon Rate:

    7.125% – 7.25%

    Interest Payment Dates:

    Quarterly

    Stated Maturity:

    6/30/2025

    Call Provision:

    Not callable prior to 6/1/2022

    1. How odd… SAR suspended common div in May and yet LTS et al feels marketing a 5 year note in June should be easy…. Price range seems high vs outstanding SAF trading around 7.50% YTM, but what with the magical appeal of an apparently newly acquired golden Egan-Jones IG rating, I suppose all things are possible….

  16. Quick Heads Up
    HWCPZ the Hancock Whitney baby bond issued few weeks ago I believe is finally going to trade today. I bought it via brokerage desk a while back, but its just been sitting there. Some rumblings in acct at Vanguard, and Charles Schwab has it loaded into their system.

    1. Thanks Adrian,

      I confirm HWCPZ is trading at both Fidelity and Schwab. If HWCPL is priced right, HWCPZ is a good buy.

  17. You gotta love Wall St………… “United’s [United Air] Banks Map Debt Plan That Shields Frequent-Flyer Plan.” https://finance.yahoo.com/news/united-air-pawns-frequent-flyers-200222854.html

    (Bloomberg) — United Airlines Holdings Inc. is tapping its frequent-flyer program for its biggest debt sale since the pandemic. The pitch? Its miles are a safer bet than the actual airline.

    A group of banks led by Goldman Sachs Group Inc. plans to offload the debt to investors through an offering of leveraged loans and secured bonds that could be completed before the July 4 holiday in the U.S., according to a person with knowledge of the matter who asked not to be named because they’re not authorized to speak publicly. The unique structure could even see the debt given one investment-grade rating, the person said.

    The lenders agreed to provide $5 billion of loans to United in exchange for a claim on MileagePlus, the loyalty program the airline established in 1981. They’re now trying to convince investors to buy into the idea even as hundreds of planes sit idle on tarmac amid a collapse in travel demand.

    The debt will be issued through bankruptcy-remote entities that United created to house the mileage program, and which is separate from the air carrier’s operations. MileagePlus derived 71% of its cash flow in 2019 from third parties such as credit card companies that award miles to their clients, according to a company presentation. Miles earned by United passengers from flights accounted for the remaining 29%.

    Read more: United leads U.S. peers with $5 billion loan against awards plan

    United said revenue for its mileage program has been resilient during downturns when its own performance has declined. During the 2008-2009 recession, revenue for MileagePlus fell by 2%, compared to a 19% drop for the company as a whole, according to the presentation. United valued its MileagePlus program at around $22 billion, almost double its current market capitalization of $11.7 billion.

    Because the financing is structured in a way that protects MileagePlus from the rest of United and contains provisions that prioritize debt repayment, the offering is expected to receive ratings that are higher than those of United. The company is rated two notches below investment grade by Moody’s Investors Service and three steps below by S&P Global Ratings and Fitch Ratings.

    A representative for Goldman Sachs declined to comment. A representative for United didn’t respond to requests for comment.

    United is turning to its rewards program after an effort last month to sell $2.25 billion of junk bonds fell flat with investors, who had concerns about the planes backing the debt. While the airline ultimately reached a deal, it decided to pull the transaction to seek more favorable terms and potentially a different structure later, Bloomberg News reported at the time.

    Other airlines have sought to monetize their miles in the past. Avianca Holdings SA, one of the largest airlines in Latin America, mortgaged its LifeMiles program in 2017. When the carrier filed for Chapter 11 bankruptcy last month, LifeMiles was spared. But Moody’s downgraded the debt to seven levels below investment-grade on expectations that LifeMiles would be temporarily hurt by the pandemic through its impact on consumer spending, traveling and economic growth.

    1. 2WR, you have got to be kidding, Now they are down to selling the sizzle and the smell of the steak. With the same snake oil salespeople that are selling and promoting it that it “may” be investment grade ?

  18. NYMT IS PAYING….New York Mortgage Trust Declares Second Quarter 2020 Common Stock Dividend of $0.05 Per Share and Resumes Payment of Preferred Stock Dividends. n addition, the Board reinstated the payment of cash dividends on the Company’s 7.75% Series B Cumulative Redeemable Preferred Stock (“Series B Preferred Stock”), 7.875% Series C Cumulative Redeemable Preferred Stock (“Series C Preferred Stock”), 8.00% Series D Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (“Series D Preferred Stock”) and 7.875% Series E Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (“Series E Preferred Stock”) as stated below.

    1. Bob, thanks for sharing this. I love their Whole Cluster Pinot Noir. I haven’t anything else as yet. I might buy some too, I bought shares of WINC (they had a private offering through seedinvestor.com).
      Are you a member of their wine club?

  19. Well this article isn’t completely apocalyptic…..
    https://www.theatlantic.com/magazine/archive/2020/07/coronavirus-banks-collapse/612247/

    It has this cheery quote:
    “But there’s another threat to the economy, too. It lurks on the balance sheets of the big banks, and it could be cataclysmic. Imagine if, in addition to all the uncertainty surrounding the pandemic, you woke up one morning to find that the financial sector had collapsed.”

    Demand shifted to a similar—and similarly risky—instrument, one that even has a similar name: the CLO, or collateralized loan obligation. A CLO walks and talks like a CDO, but in place of loans made to home buyers are loans made to businesses—specifically, troubled businesses.

    Readers of this site know exactly what he is talking about.

    1. Justin, I think a takeaway from this is that we tend to back-burner issues that are not affecting us – right now. Kind of like the CA fires here; There’s an interesting news story, and then you see the smoke, then the aircraft, then flames then next thing you know you’re packing the car and evacuating – at which point it becomes real.

      More directly related to your news story is that the mortgage market is still quite sick from the March implosion and that news is surprisingly under-reported. Mortgages basically come in three tiers: conventional, high balance and jumbo. In our area conventional goes to $510,400, high balance to $713,000 and over $713,000 is jumbo. Now I’m sure there are some already saying – OK, it’s an interesting news story – but I see no smoke – and that’s crazy California numbers. Maybe so, but here’s the thing – those numbers are not crazy here and not crazy in many other parts of the country. This is why it matters – since the March meltdown – the jumbo market has disappeared – the loans vanished. Gone. That is a very big deal. The high balance loan market is also de facto not functioning. That’s also a very big deal here and in many other markets. If you want to sell your home and the buyer can’t get a loan – what happens? Uh huh. You lower the price until you can catch a bid. And what if this starts to extend into the conforming mortgage loan markets around the country. Dominos come to mind. At which point it starts to get real for everyone.

      The summary point is that some of the fallout described in the article is already occurring. Not loan defaults, but holes in the financing structure that supports housing-asset prices and it’s now been going on for months. Not some blip – but months. The same is occurring in some of the commercial mortgage space. MFA provides a textbook example.

      So now you’ve heard the news story, and if you own MFA or any number of other impacted securities, you see the smoke. No predictions, though recognizing this thing already has some momentum on Main Street.

      1. mREITs operate in three unique spaces and typically price move with book value: Agency, Hybrid, Multipurpose.

        Risks: Highly leverages investment book typically 9x+. Interest rate hedges are employed to counter risks. In the recent unwinding what happened is interest rates changed too rapidly 100 bps for the hedges to be effective causing margin calls. Flooding the market with paper the market could not absorb.

        Agency – RMBS/CMBS. Back stopped by Fed. AGNC and NLY have reported material gains to book value.

        Hybrid – Non-Agency RMBS/CMBS. Non-Agency market went into tail spin due to no buyers while holders needed to sell to cover hedge loss induced margin calls. MITT / MFA / IVR book values have suffered greatly.

        Multipurpose – MSR (Mortgage Service Rights). Risk is the MSR market is highly illiquid leading to huge pain to cover margin calls. NRZ with limited leverage has come out relatively unscathed.

        Going forward if short term interest rates stay extremely low near zero for next 2-4yrs. Long term 30yr paper spread continues to widen. This is as near perfect environment for mREITs to operate. Staying Long.

        1. micah, Appreciate the well-informed summary. I too am remaining long on agency paper via AGNC preferrreds. Those loans have for years now been underwritten one at a time using some of the strictest guidelines in decades.

          The ongoing problem for the residential real estate market is the non-agency RMBS, and more specifically the lack of a functioning market as you outlined. It’s having a material impact in some areas where financing above agency level is not available or is only available with onerous terms. Imagine if you wanted to sell your homes but buyers were unable to obtain mortgage loans. That’s what’ sbeing experienced in those markets.

    2. Scaremongering, with key factual inaccuracies. For instance says about leverage loans: “These are loans made to companies that have maxed out their borrowing and can no longer sell bonds directly to investors or qualify for a traditional bank loan.” WRONG. Leveraged loans in CLOs are senior secured loans, and in many cases there are high yield bonds, unsecured, sitting below these leveraged loans. Article does not note this. The high yield bonds typically lose most if not all. It’s a bad mistake that in my mind invalidates much of the article. Later doubles down saying “Remember: CLOs are made up of loans to businesses that are already in trouble.” WRONG. These are all healthy businesses at the time the loan is made, in a large number of cases just purchased by private equity groups for high multiples. Yes, there is higher leverage on these companies which can cause trouble down the line, but just false to say they are troubled companies. The article falsely implies that CLOs hold distressed loans. AAA tranches of CLOs have NEVER defaulted. If AAA tranches default enough to take down banks then our entire economy is ruined anyway as CLOs can have 100s of loans and banks hold many CLOs. It would mean 1000s of defaults, so problems would be well beyond CLOs. Reckless scaremongering, good way to get printed though.

      1. CLO debt above the BB level in the waterfall paid out throughout the last financial crisis. Mark to market losses occurred as default rates increases but if you had the iron will power to hold on you simply clipped coupons while your tranches re-priced.

        CLO Equity tranches should be avoided during periods of economic stress.

  20. A little more clarity on PCG debt structure (but not enough).
    PG&E (PCG -6.1%) is asking a bankruptcy judge to allow it to sell $20B worth of new debt and equity to raise money to pay off wildfire damages, as it awaits approval of its plan to exit Chapter 11.
    PG&E wants to go to the public debt markets for $10.7B of bond financing – including $5.9B of investment grade bonds issued by the utility and $4.75B of high-yield bonds at the corporate level – and seek buyers for $5.75B worth of shares.
    First offering is showing IG status at the subsidiary where the preferreds lie, while the hold co is the junk. What needs to be determined is what the actual credit rating of the debt will be and whether its senior secured or senior unsecured debt as I havent located that yet. Interesting the A series is up on rather large 7700 shares today. Im down just to A series and still own too much, but I aint sellin’.

    1. Grid, how does all of that (or how will it) affect the preferreds, if at all? I’m holding several of them, which are already up from where bought.

      1. Franklin, probably not much. Would be nice to know general slotting though, but it depends on what the subsidiary senior unsecured bonds get rated at. Basically the A is about 5.8% stripped, so I wouldnt really be chasing up here. Most likely they will be BB rated at best with the additional post bankruptcy debt piled on. Its coming out of bankruptcy, no doubt though. Just today final road block was removed when protesting share holders agreed to more shares being given to them today. Its all rubber stamping from here.

      1. CenturyLink (NYSE:CTL) has priced its latest offering of senior debt.

        The company’s Level 3 Financing has agreed to sell $1.2B in unsecured 4.25% senior notes due 2028 in a private offering.

        Net proceeds along with cash on hand will be used to redeem all $840M outstanding 5.375% senior notes due 2022, and $360M of its outstanding 5.625% senior notes due 2023.

        I don’t see either of these at QO.com– only the Qwest notes.

  21. Has anyone else had a problem with Google Finance ? My spreadsheet has a lot of ?? when it comes to the names of equities or their prices. Useless the way it is. Any fix ?

    1. Andrew–is the baby bonds that are an issue? That has always been the case with google fiance and baby bonds.

    2. Some symbols are not available in Google Finance, for example AEFC SJIJ and so on.
      As a fix, you can use the importhtml function.
      If you want, post here the symbols you have a problem with. Or make a copy of your spreadsheet, remove sensitive information from it (if it’s a portfolio), and post a link to it. Let’s see what can do with it.

    3. SO WEIRD ! I post this problem that I’ve had for days (BX, BXMT, ABR etc) and half an hour later it resolves itself. Thank you all !!

  22. Aptiv PLC (APTV) New Issue
    Mandatory Convertible Preferred – priced 5.5% + 22.5% conversion premium from $75.91 concurrent equity offering price

  23. So Joel,
    basically no access to the money for 4 days to transfer it so earliest is Monday the 8th? Did you sell something ? so maybe they are waiting for the sale to settle too and their hands are tied

  24. The response I received regarding the cash transfer out was:
    – Four day liquidity at our discretion
    – NO margin flexibility at all (which I rarely if ever use), no latitude, strictly enforced: “You liquidate or we will…”
    – Read the fine print so we can maintain an “orderly market”.
    – No broker calls available without a call back when we get to you. I can not place a bond order today.
    The wrenches turn, pressure is on…ever had a head bolt snap off under torque? Bad scene.

    1. So Joel,
      basically no access to the money for 4 days to transfer it so earliest is Monday the 8th? Did you sell something ? so maybe they are waiting for the sale to settle too and their hands are tied

    1. Ah, that is why ATH-B dropped 55c this morning (1 week before ex-div). i wonder how they will price the new preferred given ATH-B is at $24.11 currently yielding 5.875%

  25. A no brainer trade:

    If you own SITC-K and like it, sell and buy SITC-A for the higher yield….and longer term to call as well.

    K currently bid 1500 shares at 21.90.

    A shares currently asking 21.87. You might do better with a limit trade, but if you hold in an IRA with no commissions or tax event, this is truly a no brainer.

    1. An even better trade now…14 cents spread and that assumes no price improvement or limit order.

  26. iBonds
    Has anyone used the iShares iBonds ETfs like IBHA or IBHB. These are target date ETFs that mature around $25 in both 2021 and 2022 respectively. IBHA is showing a 5.61% SEC yield and IBHB is at 6.96%. Fees are 35bps.
    Seems like an interesting way to get high-yield exposure with a fixed maturity.
    Any thoughts?

    1. I own those. last time I looked at Morningstar, the maturity’s lined up with the correct year so that’s good. yield will decline as we get closer to maturity

      bob

      1. With the record setting amounts of debt money being grabbed by financial issuers as well as major companies such as Apple who don’t need to be raising debt, I can’t help but think of the immortal words of Jerry Ragavoy as sung by Janis Joplin and Howard Tate before her, “Get It While You Can.” Are many of these companies only issuing debt because they see the demand being so out of whack too high that they, as savvy issuers, believe they’re selling high? Sure it’s a counter intuitive idea in this world of the dominate ‘lower for longer” mentality, but maybe identifying this trend to successfully issue more and more debt when they can should be considered a way of not betting against the intelligence of corporate America?

        1. FWIW – SPX is in a rising bearish wedge or diagonal off the 2766 low. When it finishes a diagonal it usually returns to its origin – 2766. I would expect most preferreds to follow it down. Not a bad time to lighten up a bit or hedge.

  27. For whatever it’s worth and in the experience of just my world yesterday and today:
    TDAM will not transfer settled cash out of my account by wire to IBRK.
    I have called and email asking for a formal response, but have not received one.
    Liquidity Issues? Read the fine print? Legal Latitudes given to management? Money Market disruptions? I’m tired of guessing whether a “dysfunctional drunk-daddy” is going to come home a hit me…again?… tonight?…Tomorrow night? Go sleep on the porch with the dog? I am worth more than that. I will not be a pawn.
    It is NOT my fault for asking for a counter party to be responsible as agreed. It’s time to punch the ‘daddys’ in the nose and take over our own lives again. Things may be alot worse than is being let on. I have waited another full business day again.

    Something to be aware.

    1. HOUSTON,TX / ACCESSWIRE / June 2, 2020 / Spark Energy, Inc. (NASDAQ:SPKE)(NASDAQ:SPKEP) (including its subsidiaries, “we,” “our,” “us,” “Spark” or the “Company”) today announced that it has increased the offer price and extended its previously announced tender offer to purchase up to 1,000,000 shares of its 8.75% Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Stock, par value $0.01 per share (the “Series A Preferred Stock” or the “shares”). Under the new terms of the tender offer, the Company will pay holders of Series A Preferred Stock $22.00 per share, in cash, less applicable withholding taxes and without interest, as opposed to an initially offered price of $18.00 per share. In connection with the price increase, the Company has also extended the expiration time for the offer to Tuesday, June 16, 2020.

      1. How does the tender work again? I have to call my broker to release them? I’m with TDA. Just looked it up and it’s standing at $21.50. Am I missing something? Seems an easy $.50 cap gain. Guess I’ll have to look again in the morning since announcement was after market close. I’m assuming they are closing the tender before exD so as to not have to shell out as much in divvies?

        1. Call your broker to accept. You’ll probably get it but do it soon in case the offer is over subscribed.
          Tender offers are higher than the current price or else nobody would accept they’d just sell on the open market. Typically offered on issues selling below par so the company can retire them at a discount.

  28. There is a legacy perpetual preferred stock from ENLK (now ENLC) – the $1,000 par series C – that doesn’t show up at Quantum or TDA-Fidelity bond search even with the Cusip (293336UAHO). Pays 6% through 2022 and then floats to libor plus 4.11%. That’s a current yield of +19% and a reset on current cost of at least 13% going forward. ENCL issuer rating is BB+/Ba1. I’m long already.

    It would not show up via online cusip entry for me anywhere but IB. But a call to your bond desk will find it.

    1. An interesting find to be sure and I have a few similar things in my very highest risk bucket. In March, this issue went to just over a buck (a buck being $10 on the bond market) and has already traded back to the low 30’s.

      But in fairness the issue is B+, and that was from January. May be off the scale if rated again today.

  29. Quite a rally in Muni CEFs going on. I don’t think the FRB “Main Street” program that supports muni bonds has even ramped yet. There’s room to run IMO. I watch CA munis like NCA, NCB, MUC, MYC, BFZ.

      1. I hope u got in on some WELPM with me. .I think you did if memory serves Camroc…Speaking of low yield, I bought 20O of one of my old friends lowly UELMO. 👍

  30. Well its about Book ‘em Danno time for PCG to be back in business. Regulators just rubber stamped plan today and all that is left is a Judge who wants to get home for supper and sign this in a few days….He said his verdict would be swayed by the vote, and it was a knockout. Getting close to time for me to get in line for them 10 going on 11 accrued dividends to collect. Like I have said a hundred times…You can kill a bank but you cant kill a ute with a stake through the heart.
    https://seekingalpha.com/news/3578515-california-puc-approves-pg-and-es-bankruptcy-plan

    1. Good day for me and you on this one Grid. Another $500 of options paid on PCG today and I have 901 shares at $19 that I will get around 2.5 years of dividends on if the judge does as you say.

      I made $1/share on the Pinnacle stuff I picked up yesterday and flipped today so I go into the weekend pretty tickled with myself. The wife might even let me sleep in the house this week!

      1. Scott, at least you can be honest and tell wifey you padded the accounts. As opposed to Pendragon who sometime is going to have to fess up to wife he blew their retirement on hospitality and mall reits along with XOM at $80 and KMI at $40, lol…
        Yes, the PCG preferreds were easy pickings. Shamefully they have by far been my biggest holding for at least a month now as I kept buying….and buying from a couple month’s ago as it was pretty much laid out in black and white the end result is happening as planned.

        1. Grid, if you pick up shares now is the holder entitled to payment on the previous suspended dividends? Thanks

          1. D, yes, whoever owns the shares whenever it goes exD with the dispersement gets all dividends. Being the entire Series of preferreds is just a $14 million annual disbursement (they were paying annually a billion in common stock dividends pre fire), I suspect the $42 million that will have accrued by end of Oct will be disbursed at once sometime before year end.
            The prices have risen quite a bit so not as much meat on the bone as it was. So you have to do a little math here to see if its even of interest (or you can just track and see if you get any chance to buy lower if it doesnt appeal now).
            Lets use Series A, 6% noncallable as an example. Basically at this point $4 has accrued. This effectively makes it a $24.50 preferred or about a 6.12% preferred going forward. PCG has stated their debt would be IG rated, but being realistic it has to be BBB/BBB- at best senior unsecured if it goes PCG way. This would slot preferreds a BB rating.
            A fair marker is SCE-G which is 5.1% “par” and about $24.11 and 5.11% yield. So it is possible Series A could trade in $27 area after disbursement. Some possible meat on the bone still. But there are risks, as it hasnt cleared final judge hurdle and of course fire season is coming. I got in lower, and for now I will just milk the approaching greed factor for the divi disbursement which could chase it up some more. As some point I will start peeling back though, as it is by far my biggest collective holding and that isnt going to stay that way for any significant more amount of time. Ultimately I will at some point sell off the other amounts of the other 5 series I own, and part of the Series A. And then at that point keep a more modest amount of Series A as a longer more speculative hold.

            1. Thanks so much, Grid, this is like going to grad school for a guy who never got the first degree. Really appreciate it! Going to take a careful, informed look at it.

          2. But do the math. The easy money of PCG has all been scrapped up. With the back divis considered you’re buying a 6% yield going forward.

            1. I was able to get in early when this was still a bit risky so got some of the fat. But 6% (fixed) is still a good % on QDI / Unredeemable issue. Should also be IG rated (lower end). Can you name any other UTE that meets those criteria? Probably not too many non-UTE’s either.

              But there was still some meat on the bone, PCG-A closed @ $28.45 on 6/1 (and would have been about 6.1% div yield after the div payout). It popped today and closed at $29 (looks like 4K block). Sister issue PCG-B may have a few shreds of meat left.

              I figure that 6% is still pretty high yield and that share prices may still go up putting some capital gains on the table. With 5.75% div yield that would give PCG-A a $30 target and PCG-B would be better buy right now as it has more upside (about $2/share).

              1. CU&CIU fixes still have an yield of about 5.5%, and they are of high investment grade. You can also look at the two issues by Brookfield, BEP.Pr.E (fixed with current yield of about 6.3%) and BIP.Pr.A (reset, just reseted and now have the yield of about 7%). But the last two are partnerships, so there will be no withholding tax but the dividends will be unqualified.
                In the US market, it is now of course too late to try to catch something interesting in the Ute sector…

              2. FL, I am in these also and flip around on them frequently buying one series and selling another at the same time on price movements. Though I do hold a core Series A though. I think you are being, however, a bit optimistic on their future credit rating.
                PCG has tried to assure the debt will be IG, but didnt mention a grade. And since they will be carrying DOUBLE the debt they were pre fires, it would be unwise to assume anything better than BBB/BBB- senior unsecured and the preferreds at best be slotted BB. That being said 6% will still be desirable as fire as they dont have any big fires as they will be in a precarious situation with that massive debt..And remember utes carry significant debt even under normal circumstances. Yes, they have the fire fund, be it would have to be replenished. And its looking they added a clause to turn them into a CO-OP if they keep screwing up.

                1. Guess we’ll wait and see how it rates, I did say on low end, so if lower then it’s junk rated. Maybe it will, but what is for sure is they won’t be paying their common dividend for several years, that was running about a billion prior to BK. And even when they begin to pay their restructuring plan is still a fraction of that. New executive team, new board, so hopefully they can keep PG&E out of the news for wild fires. I guess I viewed as glass half full early on, dug in early on shares of PCG-A for $21-22, flipped between issues and pocketed gains along the way. Revenue source not drying up, they have paved a plan for way out with income after tax in two years back to where they were before the BK. So I don’t see risk preferred dividends not being paid, and already planned to pay the back dividend and resuming going forward.

                  1. The dividends per preliminery exit bankruptcy plan had the $42 million of deferred preferreds being dispersed this year. Getting paid is a given per bankruptcy provisions which stated the prefereds “unimpaired” and presumed to approve bankruptcy exit plan. Yes, the PCG preferred flipping game has been a good one every since day one they suspended as I jumped in then and played off and on. I will hold my A series issues.

              3. FL – I agree with you to the extent that I own a couple thousand PCG preferred. A 6% ute sounds great until you consider that there is still room for the company to blow up. Yes, it looks like the bankruptcy thing will have a happy ending but stranger things have happened.

                And assuming the bankruptcy does resolve and we get those accrued divis, this is still California. Sorry, but the state has just gone too far off the deep end. It really is a land of milk and honey but the crazies have destroyed it. Tesla can dump California and go almost anywhere, so if I like Tesla I’ll buy no matter the California factor. PCG doesn’t have that option.

                1. Bob, CA is a paradox ute wise. They giveth and they taketh away at the same time. PCG is allowed a ROE of north of 10% which is unheard of in must utes throughout US with todays low 30 year treasury yield. But on the other hand as you well know…..

                  1. Florida, Funny you mentioned the Series B as that is what I rotated into on todays sell of selling some of the other alphabet series issues. I took A series out of flipping rotation last week, but I should have really sold those also and bought more B. Is what it is….

                    1. Exactly, don’t stop squeezing the pennies out of this thing until the music stops. A penny here a penny there and pretty soon you have enough for steak dinner with nice bottle of wine 🙂 And then keep listening for when it may play again. To me they are all the same, just account for variance in the rate. Don’t think a call is going to happen even on those that can be called.

  31. Those holding QVC baby bonds may not be aware of rating actions taking them to B2/B – assuming the current rating on legacy Liberty Media bonds applies to QVCC & QVCD.

    1. Qniform – Where do you see that??? I see no such info on Moodys or S&P’s websites where searching by CUSIP for QVCC ratings are Ba2/BB+ . Don’t forget, both are secured debt.

      Last info I see on Moody’s is from 4/3 saying Rating Action: Moody’s affirms Liberty Interactive LLC’s Ba3 CFR; outlook changed to stable from positive
      03 Apr 2020

      New York, April 03, 2020 — Moody’s Investors Service, (“Moody’s”) today affirmed Liberty Interactive LLC’s (“Liberty”) Corporate Family Rating at Ba3. Moody’s also affirmed all other ratings including QVC, Inc.’s debt ratings at Ba2. The SGL rating remains at SGL-2. The outlook for Liberty was changed to stable from positive.

      “Although Liberty’s combined operations of QVC and HSN continue to operate through this period of disruption from COVID-19, we anticipate that weakness in consumer spending and changing purchasing patterns will still reduce demand at both entities” said Moody’s Vice President, Christina Boni. “We expect Liberty to maintain a conservative financial strategy as its works to return to more consistent operating performance.”

      Outlook Actions:

      ..Issuer: Liberty Interactive LLC

      ….Outlook, Changed To Stable From Positive

      ..Issuer: QVC, Inc.

      ….Outlook, Changed To Stable From No Outlook

      Affirmations:

      ..Issuer: Liberty Interactive LLC

      …. Probability of Default Rating, Affirmed Ba3-PD

      …. Corporate Family Rating, Affirmed Ba3

      ….Senior Unsecured Regular Bond/Debenture, Affirmed B2 (LGD5)

      ..Issuer: QVC, Inc.

      ….Senior Secured Regular Bond/Debenture, Affirmed Ba2 (LGD3)

      1. 2WR, yes it was the 4/3 Moody’s report I saw on the Liberty Media senior unsecured. I brought up the 2 QVC baby bonds because they’re still showing BBB- on the master list here but are no longer IG.

  32. NEW ISSUE
    Issuer: Pinnacle Financial Partners Inc. (NASDAQ: PNFP)
    Security: Series B Fixed Rate Non-Cumulative Redeemable Perpetual Preferred Depositary Shares
    Expected Ratings: BBB- (POS) (Kroll) / BBB+ (Egan Jones)
    Maturity: Perpetual
    Size: $100.0mm (4.0mm shares – $25 Par) (subj to increase plus greenshoe)
    Offer Price: $25.00 (Par)
    Price Talk: 6.75% area
    Optional Redemption: Redeemable (i) in whole or in part, from time to time, on or after September 1, 2025 (NC-5), or
    (ii) in whole but not in part, at any time within 90 days following a Regulatory Capital Event (as defined in prospectus), in each case at a redemption price to $1,000 per share (equivalent to $25 per depositary share), plus any declared and unpaid dividends, without accumulation of
    any undeclared dividends to, but excluding, the redemption date
    QDI/DRD Eligible: Yes
    Expected Listing: NASDAQ
    Ticker: PNFPP

    1. What the??????????? 5 days ago Truist issued Ser O 5 1/4% non-cum perpetual listed and today they’re doing Ser P non-cum perpetual unlisted??? Whatt’s the point?

    1. Scorpio Tankers just redeemed a three year senior note (SBNA) that paid a 6.75% coupon. Considering how good tanker rates for petroleum products have been this year, I’d be (pleasantly) surprised if the coupon on their new note is higher than the old one. I’ll be a buyer either way.

  33. Sunstone Hotel has two preferreds (-E,-F) that are relative standout performers year to date. They are down -10.4% and -8.3% respectively compared to the median return for all lodging REIT preferreds of -62.7%. Sunstone reported REVPar of $2.40 for April 2020 compared to $208.9 for April 2019, so the business is mired in the mud just like all of the other lodging REITS. I do NOT understand why these two preferreds have performed so well. They have announced June dividends on both issues will be paid, compared to some of the others that have suspended their dividends. They did suspend the common dividend.

    Their balance sheet is very strong with ~ $900 million in cash, so they claim to have a “long runway.” Their Q1 operating expense was ~$330 million, so worst case the cash runs out in about 3 quarters, even if they stop paying interest on loans/notes. And yes, their balance sheet is probably much stronger than the other lodging REITS. Several of them seem priced for bankruptcy with low recoveries on their preferreds. We have no position in these preferreds, but you might want to consider the bullish case if you own either of them.

    2020 Year to date return for lodging REIT preferreds

    SHO-PF -8.25%
    SHO-PE -10.42%
    PEB-PC -26.38%
    PEB-PF -26.42%
    PEB-PE -26.57%
    RLJ-PA -26.85%
    PEB-PD -28.75%
    INN-PD -32.17%
    INN-PE -32.49%
    BHR-PB -57.89%
    BHR-PD -62.57%
    HT-PC -62.75%
    HT-PD -63.09%
    HT-PE -63.60%
    AHT-PD -71.80%
    AHT-PF -76.55%
    AHT-PG -77.05%
    AHT-PH -78.55%
    AHT-PI -78.84%
    SOHON -79.26%
    SOHOO -80.04%
    SOHOB -80.26%

    Median -62.66%

    Sunstone Q1 Earnings Report
    https://sunstonehotelinvestorsinc.gcs-web.com/static-files/fb74c1a7-c38d-461f-ab54-aba453e46e8b

    1. Tex, thanks for bringing up something for future conversations, Hard to search prior comments on lodging reits, but I think Chuck P was holding some PEB.
      Wait to see how this holiday pays out. I know a lot of people have cabin fever, but most I asked said they were staying close to home. Here in wine country Disneyland I have been seeing more bicycle riders in the middle of the week so some tourists are coming back, but things are still shut down. They were supposed to allow limited opening of restaurants starting yesterday. Wonder if Air BNB will start to recover.
      Interested to hear what rest of country is experiencing

      1. Washington state is still locked down pretty tight. Covid trend lines are declining steeply but our gov is very slow to loosen things up. Businesses are really hurting. Many are closing up for good. Skagit county, north of Seattle has seen 1, yes 1 new case of coronavirus during the past seven days. We can’t go to a restaurant, a movie theater, a shopping mall or get an ice cream cone. However, you can get on a plane and sit shoulder to shoulder for several hours with 250 people you don’t know. Arbitrary and senseless.

  34. BSX New Issue
    5.50% Mandatory Convertible Preferred Stock $100 par
    Cusip 101137 206
    I believe it will initially be trading with symbol BSCFP and later be BSXpfdA

    1. Can I make a suggestion to you and mcg? When you guys discover these new issues, would it be possible for you to put the name of the company in your posts along with the stock symbols? I know I have to look them up with each announcement where as if the company’s name was posted as well, half the time I’d know right away I wouldn’t have any interest…. thanks

    2. RE: BSX

      I did something I rarely do, that being enter a buy order on a mandatory convertible. In kids’ accounts.

      I knew it would be the customary 45-60-minute call to Vanguard to get orders entered, and they did not disappoint. No, this isn’t a penny stock, it isn’t illiquid (trading 3+ million shares by that time), blah, blah, blah.

      For about the hundredth time (literally) I had to listen to an associate defend the fact that Vanguard’s systems cannot distinguish between shares in a Peruvian llama farm from those of a Fortune 500 company that just happened to be a new issue.

      Vanguard: you waste a lot of my time and you cost me money. I should have been able to get shares for just over $100 and instead it will be closer to 103-104.

      If you don’t want to do a good job of brokerage then get out of brokerage. I have had accounts with Vanguard for 45 years, from the days when John Bogle would call ME. For the first time I am moving money out of Vanguard.

      1. Different brokers have different strengths and weaknesses. Run several accounts so you can choose accordingly. The only downside is switching between them. On a busy day I use more than one computer.

        Free commission has repercussions. Some of the brokerage problems we’re seeing today are due to compensating for the lost revenue.

    1. 6% coupon, mandatory conversion 6/1/23. BDX currently at $240 convert at $50. Conversion range is 3.4722-4.166 or 0.1736-0.2083 depending on how you like to calculate.

  35. Oxford Lane Capital Corp. (NasdaqGS: OXLC) (NasdaqGS: OXLCO) (NasdaqGS: OXLCM) (NasdaqGS: OXLCP) (“Oxford Lane” or the “Company”) today announced that the Company’s board of directors has authorized a program for the purpose of repurchasing up to $40 million worth of the outstanding shares of the Company’s 7.50% Series 2023 Term Preferred Stock, 6.75% Series 2024 Term Preferred Stock and 6.25% Series 2027 Term Preferred Stock (collectively, the “Preferred Stock”). Under this repurchase program, the Company may, but is not obligated to, repurchase its outstanding Preferred Stock in the open market from time to time through September 30, 2020. The timing and number of preferred shares to be repurchased will depend on a number of factors, including market conditions and alternative investment opportunities. In addition, any repurchases will also be conducted in accordance with the Investment Company Act of 1940, as amended. There are no assurances that the Company will engage in any repurchases.

      1. mcg
        Please disregard my question to you. I did find the non-trading statement.
        Thanks,
        Howard

    1. mcg
      Would you kindly advise where you found the non-traded statement
      in their literature. I looked at the prospectus documents and must have missed that point. I appreciate it.
      Howard

      1. P S-13 under Risk Factors – The Series A Preferred Shares are a new issue of securities with no established trading market, and we do not intend to apply for the listing or trading of the Series A Preferred Shares on any securities exchange or trading facility or for inclusion of the Series A Preferred Shares in any automated dealer quotation system. As a result, we cannot assure you that an active after-market for the Series A Preferred Shares will develop or be sustained or that holders of the Series A Preferred Shares will be able to sell their Series A Preferred Shares at favorable prices or at all. The difference between bid and ask prices in any secondary market for the Series A Preferred Shares could be substantial. Accordingly, no assurance can be given as to the liquidity of, or trading markets for, the Series A Preferred Shares, and holders of the Series A Preferred Shares (which are perpetual equity securities and do not have a maturity date) may be required to bear the financial risks of an investment in the Series A Preferred Shares for an indefinite period of time.

  36. Anyone following the Farmland Partners soap opera [FPI, FPI-B] vs the anonymous hit piece 2 years ago on SA??

    Farmland Partners Inc. Announces Court Order to Unmask Defendants in “Short-and-Distort” Litigation
    [PR Newswire]
    PR NewswireMay 20, 2020

    Court Orders Rota Fortunae to Reveal True Identity and Comply with Discovery Requests; Denies Rota Fortunae’s Motion to Dismiss

    DENVER, May 20, 2020 /PRNewswire/ — Farmland Partners Inc. (NYSE: FPI) (the “Company”) announced today that the Honorable Kristin L. Mix, United States Magistrate Judge for the District of Colorado, ruled in favor of the Company in two critical orders issued on May 18, 2020 in Farmland Partners Inc. v. Rota Fortunae, et al., 18-cv-02351-KLM. This matter concerns the short-and-distort scheme set forth in Farmland Partners’ July 23, 2018 complaint whereby Rota Fortunae and his co-conspirators posted false and misleading statements on SeekingAlpha.com about Farmland Partners (the “Posting”) while taking sizeable short positions in Farmland Partners’ stock to earn substantial profits from the market’s negative reaction to the Posting.

    In a ruling granting Farmland Partners’ motion to compel discovery, the Court rejected Rota Fortunae’s arguments that he could proceed anonymously and ordered that Rota Fortunae could no longer hide behind his pseudonym and withhold the names of his co-conspirators. The Court held that Rota Fortunae may not prevent discovery into the merits of Farmland Partners’ claims by refusing to give Farmland Partners documents and other information that would reveal his identity. Magistrate Judge Mix rejected Rota Fortunae’s argument that the First Amendment protected his right to anonymity—holding the First Amendment does not protect defamatory speech—and after summarizing Rota Fortunae’s efforts to avoid discovery for nearly two years, ordered Rota Fortunae to respond fully to the Company’s discovery requests—and to identify himself—within 20 days and to sit for a deposition within 45 days.

    1. Im a fan of Rota. The article smelled of bs, and I bought 1000 shares or so In $17-18 range if memory serves and flipped very quickly for $3-$4 gain a share. Wish he would crank out another hit piece article to profit from, ha.

    2. Worth noting that SA made the initial Farmland Partners piece an Editors Choice pick.

      I have zero doubt that more than a few SA “analysts” engage in some form of front running of their pieces. SA doesn’t doing anything to police the practice (the disclosures are grossly inaccurate, even if true) and the writers are not subject to the kinds of policies that real Wall Street firms impose.

      Perhaps the FP case will have some positive benefit when there is some kind of a line drawn with respect to what SA prints.

      Somewhat surprising to me that SA was not named a party in the suit, even as a nominal party.

  37. Diamondback Energy (FANG) just priced a $500 million 5 year debt issue at 4.750%. Proceeds will primarily be used to refi a subs’ debt maturity this year.

  38. CBKPP is B/A 101.76/104.50. For anyone interested I’ve posted a sell for 42 at 102.25 which is last trade. Less than 100 shares so not visible on the ask side.

    This is just a clean-up trade for me – still holding a double position in CoBank preferreds and not selling them (CB is in top ten safest banks in North America).

      1. Number 6, I see the trade went through. Good for you and best wishes. Now just don’t post if you sell them at the current ask of 104.50 later today. lol

          1. OFF TOPIC ALERT….. Number 6 – Just curious about your moniker – anything to do with The Prisoner? I nicknamed my dog “Number 6” because of his constant escape attempts. 🙂

    1. A8, I was considering picking those shares up, but since I already have 300 CBKLP, decided to hold off.

      CoBank is on the list of strongest banks in the US, and also on the list of 50 strongest banks in the world!

      A SWAN investment, IMO. Great work picking them up, Number 6.

      1. inspy they are solid for sure – for me it was about tidying up the allocations as I have 2 full sleds one each of CBKLP and CKNQP. They’re not going anywhere.

        Have to say it was a bit fun doing a deal between the bid and ask with our compadres here. Keeping it in the family.

  39. Ripoff Moron has a new SA article out, recommending several Preferred issues.

    I was quite concerned about it, and prepared to seriously consider dumping if I held any of his recs.

    Fortunately, none of his recs are owned by me.

    1. I think some or all of the recommendations came from Preferred Stock Trader as I received an email from SA.

      1. You’re likely correct, Kapil. I see that many of the comments below the article were from him, in response to questions by others.

  40. Anybody notice ASRVP popped nearly 7 percent today? Shoulda, coulda, woulda bought more during the March meltdown. Any idea why? thanks

  41. LOL – I follow a small number of SA writers – but I also “follow” a handful of SA writers for laughs. In that regard I just got this notice from Brad T (not posting all of it, just the good stuff, lol):

    Please Read Immediately! Breaking (But Hopefully Temporary) News

    Dear Readers,

    That title isn’t a marketing ploy. Unfortunately, I have some news to share about the free side of my Seeking Alpha services. I’m going to have to cut back on them for a so-far undetermined amount of time. I’ll still be publishing some, of course. But not every day. Doing so had become “complicated,” unfortunately.

    For the record, this wasn’t a decision I came to all on my own. . . . . .

    Seeking Alpha has changed its policies concerning its Trending Articles – the content it promotes. While that is most definitely working in some writers’ favor, that’s not the case with me. My articles are now reaching a fraction of the audience they used to… to the point where I’ve had to do some evaluating and re-evaluating myself.

    My conclusion for the time being is to spend less valuable energy on the free side of my Seeking Alpha appearances. . . . .

    And then he of course goes on to pitch his paid service. LOL
    Nice laugh for late on a Friday

    1. That is absolutely hilarious! Is he really so stupid that he can’t see how transparent this?

      Probably not. I suspect there enough rubes out there, ready to be fleeced, that a guy with the morals of the marketplace can make a disreputable living.

      1. Brad aint dumb….What he really means is this…Less free articles means discerning investors (that wont pay for my service) who question my mediocre stock picking skills by commenting about all my failed picks, wont be able to embarrass me from the peanut gallery as often anymore.

        1. And also Grid, when he says “My articles are now reaching a fraction of the audience they used to” and blames it on SA not promoting them. what he really means is lots of people who used to read the articles have caught on to my poor record and no longer do

          1. Grid and Maverick, thanks for alerting me to this article by Bad Thomas. Clearly this was waaay overdue. Most of his stock picks are down 50% in the past year. I’m still down on a few of my preferred stocks, but did not recommend SPG @ 150 , FRT @ 120 and SKT @ 30.

        2. LOL,
          Wonder about the rest of the group that hangs around with him. Personally I am getting tired of SA pushing only certain authors day after day.
          Your not going to have as much fun now Grid.

          1. Charles, Well there is the main target worthless Pendragon and Moron to ridicule when the posts get through, lol.
            But today was a good if not calm day. Bought another 100 shares of WELPM at $124; tagged on Quniforms reco on DCP senior bondsand they jumped over 10% today; and PCG bankruptcy judge today ruled no more vote extension so that is good news for my preferreds.

            1. Thanks Grid, interesting read on the comments on those 2 Was trying to find Q’s comments but after a couple tries gave up.
              I would say after being up 10% and collecting one divy or two you might do a quick flip on those bonds.
              I am back in for now on KNOP as of Wed. hold for the next qtr. for me

              1. Charkes, Them damn bond desk jockeys are thieves so what they are being bought at is different than what they would give me. :(…First interest payment is in August being a 6 month cycle thing, so I probably will hold for now.
                Besides I dont have much high yield left. Yesterday I dumped all my UMH-B. Made 35 cents on a 2 day hold and the other half about $1.25 for a 10 dayish hold. Good enough for that..
                I actually just read insiders said the vote passing was a certainty and with judge ruling to end voting, its on the down side towards victory now with these. Ultimately the decision will be how many of these then plus 6% QDI shares am I willing to hold long term. As they arent exactly Wisconsin Energy of the West, lol.

              2. Charles, it’s Cusip 26439XAC7, traded to $95 yesterday but this is a hold for me. Remember this doesn’t trade flat. Bad economic news could send it toward $80 again and I’ll likely buy more if it does.

                My best buying experience is at Fido or IB. A few cents per bond traded and no back and forth BS.

                1. The $95 trade was only for 3 pieces aka $3,000 face. The seller sold them @$85 and Grid’s friends, the bond dealers, pocketed the extra $10/bond. So it is not clear what you can actually sell a reasonable quantity of them at. Ignoring the fact that this traded @ $120 on 3/6, it looks like the market thinks the default probability has increased. This is as opposed to margin call selling which we saw a lot of in March. Many issues that had margin call selling have recovered to their pre-virus levels. Some issues that have NOT recovered have materially increased default risks, like retailers, hotels, etc. This issue is in the middle ground, has not recovered, but has not fallen to the floor. No opinion as to whether it makes it back to $120 anytime soon. . .

                  1. Tex, they are such shameless thieves. But hey, even Buzzards and worms got to eat too, as Clint Eastwood said. I think midstream landscape especially of this ilk has changed. Im not holding my breath for $120, ha. I view it as a “relative safer“ high yield bucket purchase.
                    If it is really more an $85 current play than the couple one off trades Friday, I consider it way more value than their preferreds which I personally wouldn’t touch.

                2. Thanks Q,
                  Good to hear from you. Was looking over on SA for you, which caused me to tag Grid after I found him. For reasons Tex pointed out above I have never had much interest in bonds. I was looking more at the preferred , but haven’t followed them before so they look like a good short term trade at the right entry point.
                  I Looked at Bonds several times on TD and when I saw the spread reminded me of how Ag & Au are traded.
                  This could be Heaven or this could be Hell, We are programmed to Receive , you can check out any time you like, but you have to pay to leave

  42. NEW YORK, May 12, 2020 /PRNewswire/ — BNY Mellon (NYSE: BK) today announced that it priced an underwritten public offering of 1,000,000 depositary shares, each representing a 1/100th interest in a share of its Series G Noncumulative Perpetual Preferred Stock, with a liquidation preference of $100,000 per share (equivalent to $1,000 per depositary share), at a public offering price of $1,000 per depositary share ($1 billion aggregate public offering price). Dividends will accrue on the liquidation amount of $100,000 per share of the Series G preferred stock at a rate per annum equal to 4.700% from the original issue date to, but excluding, September 20, 2025; and from, and including, September 20, 2025, at the “five-year treasury rate” (as defined in the preliminary prospectus supplement) as of the most recent reset dividend determination date plus 4.358%. Dividends will be paid only when, as and if declared by the board of directors of BNY Mellon (or a duly authorized committee of the board) and to the extent that BNY Mellon has legally available funds to pay dividends. On September 20, 2025, or any dividend payment date thereafter, the Series G preferred stock may be redeemed at BNY Mellon’s option, in whole or in part, at a cash redemption price equal to $100,000 per share (equivalent to $1,000 per depositary share), plus any declared and unpaid dividends, without accumulation of any undeclared dividends to, but excluding, the redemption date. Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and BNY Mellon Capital Markets, LLC served as joint book-running managers for the offering; Barclays Capital Inc., BNP Paribas Securities Corp., BofA Securities, Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Lloyds Securities Inc., Mizuho Securities USA LLC, RBC Capital Markets, LLC, UBS Securities LLC and Wells Fargo Securities, LLC served as joint lead managers for the offering. The offering is expected to close on May 19, 2020.

    BNY Mellon intends to use the net proceeds from the sale of the depositary shares for general corporate purposes.

        1. The “best” of the BK preferred is the one and only exchange listed issues out there, BK-C. The yield/terms are better than the Trace issues.

          I like BK as an issuer and would buy a lot at right price. It’s rarely available at the right price. The new issue will be on my radar for sure. Buy list for the next crash. May not have to wait long.

      1. Thanks MCG… I just post the notices in case anyone is interested. Personally, I like to keep tabs on what is being offered, whether I can get my paws on it or not. Seems a bit misleading when they use the cookie cutter languange of “public offering price”.

    1. When looking at preferred, the details matter. Details I’m not liking:

      1. No zero backstop on the 5-year rate.

      2. Redemption, after the first reset, is any dividend payment date. To favorable to the company. By contrast, Canadian resets can only be redeemed on a rests date, i.e. only every 5 years.

      I like BK as an issuer but the terms on the new issue leave me cold. For me, it’s still BK-C when and if rates crash again.

  43. Possible Moody’s downgrades to Eaton Vance flavors and the like…

    The rating actions are as follows:

    Issuer: Eaton Vance Floating-Rate Income Plus Fund (EFF) – Series L-2 VRTP shares, aggregate outstanding of $19 million (190 share, liquidation preference of $100,000 per share) — at Aa3, rating under review for downgrade

    Issuer: Eaton Vance Floating-Rate Income Trust (EFT) – Series L-2 VRTP shares, aggregate outstanding of $80.0 million (800 shares, liquidation preference of $100,000 per share) — at Aa3, rating under review for downgrade

    Issuer: Eaton Vance Senior Floating Rate Trust (EFR) — Series A, B, C, D APS shares, aggregate outstanding of $75.8 million (3,032 shares, liquidation preference of $25,000 per share) — at Aa3, rating under review for downgrade

    Issuer: Eaton Vance Senior Income Trust (EVF) — Series A, B APS shares, aggregate outstanding of $37.6 million (1,504 shares, liquidation preference of $25,000 per share) — at Aa3, rating under review for downgrade

    Issuer: Eaton Vance Limited Duration Income Fund (EVV) — Series A, B, C, D, E APS shares, aggregate outstanding of $216 million (8,640 shares, liquidation preference of $25,000 per share) — at Aa3, rating under review for downgrade

    Issuer: FS Global Credit Opportunities Fund (FSCGO) — Series 2023 preferred shares, aggregate outstanding of $100.0 million (1,000 shares, liquidation preference of $100,000 per share) and Series 2026 preferred shares, aggregate outstanding of $100.0 million (1,000 shares, liquidation preference of $100,000 per share) — at Aa3, rating under review for downgrade

    Issuer: Invesco Dynamic Credit Opportunities Fund (VTA) – Series W-7 Variable Rate Demand Preferred shares, aggregate outstanding of $125 million (1,250 shares with a liquidation preference of $100,000 per share) — at Aa3, ratings under review for downgrade

    Issuer: Invesco Senior Income Trust (VVR) – Variable Rate Demand Preferred shares, aggregate outstanding of $125 million (1,250 shares with a liquidation preference of $100,000 per share) — at Aa3, ratings under review for downgrade

    Issuer: Nuveen Short Duration Credit Opportunities Fund (JSD) – Series A taxable preferred shares, aggregate outstanding of $70.0 million (70,000 shares, liquidation preference of $1,000 per share) — at Aa3, rating under review for downgrade

    Issuer: Nuveen Floating Rate Income Opportunity Fund (JRO) – Series 2027 term preferred shares, aggregate outstanding of $45.0 million (45,000 shares, liquidation preference of $1,000 per share) — at Aa3, rating under review for downgrade

    Issuer: Nuveen Senior Income Fund (NSL) – Term preferred shares, aggregate outstanding of $33.0 million (33,000 shares, liquidation preference of $1,000 per share) — at Aa3, rating under review for downgrade

    Issuer: Nuveen Floating Rate Income Fund (JFR) – Series 2027 term preferred shares, aggregate outstanding of $55.0 million (55,000 shares, liquidation preference of $1,000 per share) and Series 2024 term preferred shares, aggregate outstanding of $35.0 million (35,000 shares, liquidation preference of $1,000 per share) — at Aa3, rating under review for downgrade

    1. GREENWICH, Conn., May 18, 2020 (GLOBE NEWSWIRE) — Oxford Lane Capital Corp. (OXLCM) (NasdaqGS: OXLC) (NasdaqGS: OXLCO) (NasdaqGS: OXLCM) (NasdaqGS: OXLCP) (“Oxford Lane” or the “Company”) today announced that it has elected to repay and terminate its $40.0 million repurchase agreement with Nomura Securities International, Inc. (“Nomura”). Oxford Lane had previously entered into a repurchase transaction (the “Repo”) with Nomura pursuant to which Oxford Lane sold collateralized loan obligation (“CLO”) securities to Nomura. As of May 15, 2020, the size of the Repo stood at $40.0 million and the scheduled maturity date was October 2, 2020. On May 15, 2020, Oxford Lane elected, at its option, to terminate the Repo and to repurchase all of the previously-sold CLO securities from Nomura at a repurchase price of $40.0 million plus accrued interest. Following the repayment and termination of the Repo, the Company’s only debt or preferred securities currently outstanding are its preferred stock, for which the earliest maturity is June of 2023…
      https://seekingalpha.com/pr/17873972-oxford-lane-capital-corp-repays-40-million-repurchase-agreement-nomura-securities

      1. Thanks Fabrib–I assume they had to sell some CLOs to garner some cash–typically they don’t have that much laying around, but maybe the had larger sales of their ‘at the money’ offering.

      2. Does this mean that the company will likely not repurchase shares of preferred stock in the open market? Thanks.

    2. GREENWICH, Conn., May 21, 2020 (GLOBE NEWSWIRE) — Oxford Lane Capital Corp. (NasdaqGS: OXLC) (NasdaqGS: OXLCO) (NasdaqGS: OXLCM) (NasdaqGS: OXLCP) (“Oxford Lane” or the “Company”) today announced that the Company’s board of directors has authorized a program for the purpose of repurchasing up to $40 million worth of the outstanding shares of the Company’s 7.50% Series 2023 Term Preferred Stock, 6.75% Series 2024 Term Preferred Stock and 6.25% Series 2027 Term Preferred Stock (collectively, the “Preferred Stock”). Under this repurchase program, the Company may, but is not obligated to, repurchase its outstanding Preferred Stock in the open market from time to time through September 30, 2020. The timing and number of preferred shares to be repurchased will depend on a number of factors, including market conditions and alternative investment opportunities. In addition, any repurchases will also be conducted in accordance with the Investment Company Act of 1940, as amended. There are no assurances that the Company will engage in any repurchases.
      https://www.marketscreener.com/OXFORD-LANE-CAPITAL-CORP-7231756/news/Oxford-Lane-Capital-Corp-Adopts-Preferred-Stock-Repurchase-Program-30647994/

      1. Those three issuances total $168.9mm at par. At current levels, they could retire ~30% of par value (if they actually spend the $40mm).

        1. Why not just redeem all of the OXLCO issue? Its the smallest at 19 Million, has the highest rate and they already had a partial redemption in March.

    3. https://amtrustfinancial.com/getmedia/13b45630-b25b-4107-9727-e6d8a2f4c72f/AmTrust-Announces-Quarterly-Cash-Dividends-on-Preferred-Stock_Q12020.pdf
      NEW YORK, May 21, 2020 – AmTrust Financial Services, Inc. (“AmTrust” or the “Company”) today announced that its
      Board of Directors has approved a cash dividend per share on the following series of non-cumulative preferred stock:
      Series Rate Dividend
      A 6.750% $0.421875
      B 7.250% $0.453125
      C 7.625% $0.476563
      D 7.500% $0.468750
      E 7.750% $0.484375
      F 6.950% $0.434375
      The preferred dividends will be payable June 15, 2020 to stockholders of record on June 1, 2020.
      About AmTrust Financial Services, Inc.
      AmTrust Financial Services, Inc., a multinational insurance holding company headquartered in New York, offers specialty
      property and casualty insurance products, including workers’ compensation, business owner’s policy (BOP), general
      liability and extended service and warranty coverage.

  44. Pulling my standing sell orders on preferreds, notes and bonds tonight on the news below. Leaning in just a tad on a few buy orders. Will be monitoring for potential ripple effects as smaller players may be yield-chased out of corporate and into preferred arena. We shall see.

    Jay, in case you’re reading Tim’s blog, if you get bored with corporate bonds, please buy all available RLJ-A up to say, $30/share.

    https://www.marketwatch.com/story/fed-says-it-will-start-buying-corporate-bond-etfs-on-tuesday-2020-05-11

    1. Alpha, I threw in the towel a couple weeks ago attempting to hold a small modicum of cash after crash recovery. The plan never worked as I kept buying and buying. Except for a maybe a week its basically been full speed ahead. Though being defensive with quality. The small ball flipping gains are really adding up. All while my preferred yield hits all time lows. Though most of it done intentionally.

      1. Grid, Completely agree. Been bunkering into quality. Knowing nothing, I’ve been relying more on ratings the last few quarters. Average hold is north of BBB+. Favoring QDI issues in taxable for the equivalent yield boost which is around 6% overall. Mostly sitting on my hands now. Your flipping skill is worthy of a glass-raising cheer.

    1. PG&E Has Announced A $3.25B Stock Investment From Multiple Investors. Sees To Pursue $5.75B Underwritten Public Offering (CNBC)

    2. CenturyLink (NYSE:CTL) subsidiary Level 3 Financing will offer $1B of fixed-rate, eight-year unsecured senior notes in a private offering.
      The proceeds will be combined with cash on hand to redeem all of Level 3’s $840M of outstanding 5.375% senior notes due 2022 and a portion of the outstanding 5.625% senior notes due 2023.
      In a separate transaction, CenturyLink subsidiary Qwest plans to redeem $200M outstanding of its 6.875% Notes due 2054.
      https://seekingalpha.com/news/3581844-centurylink-subsidiary-plans-1b-note-offering

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