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.

377 thoughts on “READER INITIATED ALERTS”

  1. FYI: The new pref that had initially traded as JPGGL (JPM-J) is apparently using an old JPM symbol from a previous pref called in May 2013. This old one is what is seen up at Quantum if you use it at least right now.

  2. LTS Baby Bonds selling off due to the merger news. All currently trading below par. Not absurdly cheap, but a significant sell-off none the less. Must be de-listing fears due to the merger. Although I would worry about de-listing of their preferreds, not worried at all if they delist the baby’s.

    1. LTS filed an 8k this morning that all baby bonds will likely be delisted, see below from the 8k:

      “The Merger Agreement requires the Company, upon Advisor Group’s request, to use reasonable best efforts prior to closing to enable the surviving corporation in the Merger to delist and deregister the Debt Securities (to the extent listed or registered) and Preferred Shares as promptly as practicable after the Effective Time.”

      1. What happened to the preferreds being exchanged for stock- as in prior release? And baby bond holders get nothing?

    2. I would be concerned about the baby bonds. Not only will they be delisted, but the acquiring company has a poor credit rating (worse than LTS I believe) ….and has now been placed on watch for a downgrade….

      1. I like to buy special situations like this for a very small portfolio allocation in riskier distressed situations, but haven’t yet analyzed the acquiring company. Do you have any more details on the acquirer?

  3. Compass Diversified New one coming….

    Each Series C Cumulative Preferred Share Represents One Corresponding
    Beneficial Interest in Compass Diversified Holdings
    We are offering shares of % Series C Cumulative Preferred Shares (the “Series C Preferred Shares” or the “Shares”)
    of Compass Diversified Holdings, which we refer to as the trust.
    Holders of Series C Preferred Shares will be entitled to receive cumulative cash distributions at a rate equal to % per annum.
    Distributions will be payable quarterly in arrears on , , , and of each year, when and as declared by the
    board of directors of Compass Group Diversified Holdings LLC, which we refer to as the company, beginning on , 2020, except in
    each case where such day is not a business day. Distributions will accumulate and be cumulative from, and including, the date of original
    issuance of the Series C Preferred Shares.
    At any time or from time to time on or after , 2025, we may, at our option, redeem the Series C Preferred Shares, in
    whole or in part, at a price of $25.00 per Series C Preferred Share plus any accumulated and unpaid distributions thereon (whether or not
    authorized or declared) to, but excluding, the redemption date. See “Description of the Series C Preferred Shares—Optional Redemption.” If a
    Tax Redemption Event (as defined herein) occurs prior to , 2025, we may, at our option, redeem the Series C Preferred Shares, in
    whole but not in part, at a price of $25.25 per Series C Preferred Share plus any accumulated and unpaid distributions thereon (whether or not
    authorized or declared) to, but excluding, the redemption date. We may be required to make an offer to repurchase the Series C Preferred
    Shares upon the occurrence of certain corporate events. See “Description of the Series C Preferred Shares—Repurchase at the Option of
    Holders upon a Fundamental Change.” The Series C Preferred Shares will rank equally with other series of our parity shares, junior to our
    senior shares and senior to our junior shares (as such terms are defined herein) with respect to payment of distributions and distribution of our
    assets upon our liquidation, dissolution or winding up. See “Description of the Series C Preferred Shares—Ranking.” The Series C Preferred
    Shares will not have any voting rights, except as set forth under “Description of the Series C Preferred Shares—Voting Rights.”
    Each Series C Preferred Share of the trust corresponds to one Series C Trust Preferred Interest of the company.

    1. Tim, yes I noticed that being its my current biggest issue, lol And we get the cash like in a day or two also which is nice. Unlike my INBKL which goes exD tomm. Thieves dont pay for like 6 weeks.

      1. Man, sometimes you just have to admit how dumb you are…. I’ve owned INBKL for almost 3 years now and never really paid attention to how long the ex-div period is… Duh! Not being an in and out trader, it doesn’t matter too much, but it sure can screw up some yield calculation assumptions.

        1. 2WR, Yep its been an in and out burger over times. Being so small it has had some huge one day dumps a few times over its life that dropped it good. Not so much lately. I recently got in mostly in the $25.60 range and bought a few more up at $25.80. It definitely has your name written all over it. A defined maturity, a very solid Libor to protect owner if not redeemed on first call date, and a decent company.

          1. Grid, between INBKL and INBKZ, which would be the better one to buy?

            I have both, but in very small quantity. Was thinking of adding to INBKL

            1. Inspy, It depends on what you want. Longer duration protection or not. INBKZ has a lot lower adjustment than L has come adjustment time. The biggest reason for me was L is closer to par and it jumps crazy at times…Just in past month I bought in 25.60s, sold maybe a week later at 26.05, then bought most of them back in 25.60 range (though I did chase a few to 25.80 to get them all back).

                    1. You guys will be in good shape there. They may redeem in 2021 because of the higher Libor that kicks in.

  4. The long end yield curve isnt killing the preferred market with miserly yields its the credit spreads that are hugging all time lows that is the problem. Lets use PPX as an example. Issued in 2013 when 10 year was 2%. It was around 1.9% yesterday. PPX was issued at 5.9% par investment grade. Allowing for 10 basis points, seeing any 5.8% IG issues coming to market now?
    It could stay this way forever with nothing happening, of course, but one needs to be cognizant that currently one is not only exposed to interest rate movement, but credit spreads also being they are very low.

    1. Spreads are low in the bond market but I don’t if that’s biggest driver of your example. Perhaps what accounts for low IG yields is a big decrease in forward rate expectations vs. 2013. In 2013, folks thought the 10 year may eventually go back to 5%. Now it’s clear the economy can’t even sustain a 3% 10 year before growth and inflation decline.

      That said, no one should be buying sub-5% issues unless they think rates are headed back to 1.5%

      1. Landlord, Just to clarify, when I say credit spreads, I mean credit spreads of all credit ratings in relation to 10 year bond. Remember PPX was 3/2013 way before Taper Tantrum and your concern which began to initiate later in summer and also Fed Funds rate at that time was 0%.
        Investment grade credit spreads are 60 basis points tighter now than they were earlier 2013. So this has a direct impact on yields coming to market…Credit spreads and long end yield curve yield are what defines pricing of preferreds. However, your thoughts (along with economic concerns) go hand in hand in setting the above rates.
        But I certainly am making no directional prediction either way, though I just play the hand Im dealt the best I can. 🙂

    2. Grid – Your post made me remember a post I made to our best bud, Rida, who of course, was saying the complete opposite in his Oct 20 article titled, “Interest Rate Cuts: One Of The Best Times To Load Up on High Dividend Stocks:”

      It seems to me that the incessant quest for yield by individuals and institutions alike in a low yield environment has created a different scenario than what you’re describing.. As the headline from a July 8 Marketwatch article points out, “Yield gap between risky corporate debt and investment grade sinks to 12-year low.” https://www.marketwatch.com/story/yield-gap-between-risky-corporate-debt-and-investment-grade-sinks-to-12-year-low-2019-07-08.” That would say to me that more and more investors are not being compensated anywhere near enough to justify the credit risks they are taking on to buy whatever slight increase in yield they can find vs investment grade no matter what the credit risks. That would also imply to me there are two scenarios that could negatively impact high yield. If investment grade bonds, or higher rated bonds, see a correction as you predict, that same scenario of declining economic activity that would trip off that decline will most likely impact the high yield sector even faster, Secondly, just a hint of recession will have the potential to keep investment grade bonds stable while high yield begins to widen to more historically accurate spreads from today’s compressed, not anywhere near large, levels.. strictly my opinion.

      1. 2WR, Lol, I am making no such prediction! :). Im just stating what the stats are. And they could stay that way a long time. I tweak and flip, but stay in the game grinding it out despite worries. Its just something to be aware of.
        And as you know, nothing I am saying here is in opposition to what you are saying. Its the realities we live in isnt it.

    3. I agree with your comments Grid. I would like to send out an alert to every one here in this forum. As a trader of Spx for 20+ years I think every one should raise a little cash if you are in index funds. History has shown that a rising Spx along with a rising Vix never has a good outcome. The Vix currently has the largest short position ever. Timing is the issue. We are in the best time seasonally to be long, but remember last December. I think we get a pop on the trade signing, but that will probably be a sell the news event. I also expect lower yields which should be good for our preferreds. ATB.

  5. Atlas Financial Holdings (AFH) (AFHBL) has finally selected an independent auditor. They have also has agreed to release all 2019 10 -Q ‘s Feb 28, 2020. With their BB selling for $7.99 it’s an interesting gamble.

  6. Started nibbling on CNP-B. Dropping before the dividend. Keep an eye on this one, as it also “might” be a good pick throughout the year end. It rose the first 1/2 of the year and might be a candidate for investors to sell to offset their gains this year.

    Beware, this is NOT a perpetual fixed income investment. It is mandatory convertible to the common with a formula, and therefore has risk. You have to be comfortable owning the stock in 2 years. The common stock is near a low (not an all time low) but good enough for me to start nibbling on it. Maybe I am biased, but i have been paying them monthly checks since ’99 (or at least one of their subsidiaries).

    1. looks attractive

      silly question – as i am not too familiar with convertibles

      are the risk as in getting less than $50 per share of the preferred on the conversion if the price falls below $27.25?

      1. Hi Pickle. You can search this site, as i think Grid and others posted the risks and details about this. If common goes to high it is capped at a conv rate, and if it goes low there is another conversion rate too. Since the common is going down, the conv rate is 1.8349 common shares per unit if the market price is equal to or less than $27.25. If prices drops below $27.25, you simply take 1.8349 X the # of shares you bought.

        Let’s say you bought 100 shares today at $50, which is $5,000. You would then collect divies every quarter for the 2 years until mandatory conv date of 9/2/2021. Let’s say price of common is $27. Your 100 shares turns into 180 shares, and they would be worth $4,860.

        For me, it is a way to diversify my money in an investment in a utility co. Could the price drop more? yes if you look at the 3 yr chart for the common. So that is why i am purchasing some lots of it as it has dropped in my opinion “near” a bottom. Then i start collecting dividends on that for 2 years. This again entices me more than buying 4% perpetuals. Hopefully that sheds some light on this.

    2. Thanks for the heads up, Mr. L. Did my DD and picked up a small speculative position. Plan to sell before conversion in 2021.

  7. For some seemingly inexplicable reason, RILYN (recently issued baby bond), which had been trading between 25.05-25.20, suddenly jumped to 25.70 today. RILYP (the preferred) is now 25.16.

    1. Vg–looks like just one trade where someone may have learned an expensive lesson and placed a ‘market’ order instead of a limit order.

  8. Any announcement on redeeming PSA-W and PSA-X? They have been trending down like they have been called, but I did some quick checking and didn’t see anything. Maybe I missed something somewhere?

    1. IMHO PSA-W is an amazing bargain at $25.06. PSA-A and PSA-V will most certainly get called before either PSA-W or V. At 5.2%, even if it gets called in December, you are getting a great short term return on your money. In all likelihood, you have at least 6 months before either PSA-W or PSA-X get called.

      1. Tom–I agree with you. The threat of a call should keep most of these issues pinned to the $25 area (plus accrued)–assuming flat interest rates.

    2. Mr. Lucky–no announcement on those issues and at 5.20% they would appear to be ‘on the bubble’–but you know PSA–they refi when it makes sense–should keep these issues pinned to around $25 for the time being.

      1. Thank you Tim and others for checking. I picked up 12,000 shares in the last 2 days. Something was eating at me that I was missing something somewhere. With a dividend coming up in a month, I figured this was the next few issues to rotate some funds from selling into. I am down to about 60 preferreds and baby bonds, but this time last year i was around 90+. To me, these are better to rotate new money in vs brand new sub 5% and perpetual. Many I own now are past call issues to keep that idea of pinned to par.

        1. Mr Lucky–I think part of the downward action was simply the rising interest rates–but all things considered these issues should stay pegged around $25 which is right in my wheelhouse now–assuming we don’t get another big spike in rates.

  9. RILYL – I know some others here still hold RILYL, so I’ll share this email received on 10/18 from IR regarding Riley’s theoretical plans for RILYL… “With regard to the notes, we intend to call the 7.50% 2021 Notes by the end of the year. We have not yet established the exact call date, but will be sure to communicate additional details as soon as available.” I share this so you are aware of the risks of holding given how RILYL now trades at a price above what would accrue by 12/31. Personally, I bot a ton when it was announced as to be called from proceeds of RILYN on 9/20, so I’m thrilled that a call date has yet to be announced and I’ve only sold about 22% of what I own at 25.30. I am holding the balance despite what IR said mainly for two reasons – 1. No matter what happens I am already doing better than I expected given I bot for a picking up pennies type anticipated 30 day call and 2. I believe a lot of investment opportunities happened all of a sudden for Riley immediately after they issued both RILYN and P, and so at least temporarily, they have had other more pertinent uses of capital than to call RILY, thus making immediate call less important to them, especially since it’s such a small sized issue of only 28.8 mil. So I’m holding and taking the risk that IR provided info that will prove to have been prematurely stated… If it lasts beyond the next coupon worth 46.875 cents, then who knows how long they’ll end up ignoring its existence?

  10. three simple suggestions:

    1. unplug from the day to day media, that is what i do
    it makes the rest of your life very rewarding

    2. stop whining, you cant control any of this

    3. any questions see #2

    1. PickleNick, you are DEFINITELY a scholar and correct; reminds me of one of my favorite quotes…
      “ Life is too important to be taken seriously“. Oscar Wilde
      Have an awesome weekend, Nomad

      1. SteveA–I assume this is the one from early today. I saw it then–no biggie–we all lose control–but we should minimize (as you know). Have a good weekend.

  11. CIT GROUP – New issue : CITUP for now ( Sit-up & take notice?)
    CIT GROUP INC NEW Preferred Ser B

    Did not find it in any search here.

    1. 5.625% is decent but not for BA3 by Moodys of B+ by S&P. It sure mirrors the low rates being paid but maybe it will trade down. Thanks for pointing this out and giving OTC symbol. I saw it earlier in reader alerts nd lost track of the issue.

    2. HOUSTON, TX / ACCESSWIRE / November 8, 2019 / Spark Energy, Inc. (SPKE) (“Spark” or the “Company”) (NASDAQ:SPKE), today announced that it has amended and extended its repurchase program (the “Repurchase Program”) of its 8.75% Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Stock, par value $0.01 per share (the “Preferred Stock”), formerly announced on May 22, 2019. The Repurchase Program allows the Company to purchase Preferred Stock through December 31, 2020, at prevailing prices, in open market or negotiated transactions, subject to market conditions, maximum share prices and other considerations. The Repurchase Program does not obligate the Company to make any repurchases and may be suspended at any time. The Company intends to fund the Repurchase Program through available cash balances as well as future operating cash flows.
      https://seekingalpha.com/pr/17692993-spark-energy-inc-authorizes-preferred-stock-share-repurchase-program

  12. New issues:
    AEFC trading back down to around $25.25 and 5% yield.
    ASTLZ at $24.79 just shy of 5%.
    NTREL back down.
    PSPBZ back down.
    Circle back, watch and wait.

      1. Never really know. Panic happens. I am in a three year compounding phase and do not want to touch my investments. I will take IG and long call coverage to get through. A man’s gotta know his limits and those are mine right now. Figure out exactly what you reasonably want from your funds now and act that out.
        I think IG will eventually hold a price line during some recession/downturn AND rates soften again. Of course, my average yield has gone south to a degree. I’ve been stopped out and sold some higher yields, but have not been called at a premium yet either.
        The differential on a $10,000 investment at 1% lower rate = $100 a year; a capital loss can be much more and suddenly irreversible, so I accept a lower IG/long call issues and stay fully invested. I can drip divys/compound and look for future opps. Develop a firm schema.
        On TD there is a nice Income Estimator tool that is not automatic and is easy to maintain by adding data on new purchases. Sales are deleted automatically. With some short term gains, if possible now? and ‘flipping out’ it may continue to be possible to add incremental gain to the raw income production.
        You will probably manage your funds better than a broker, BUT keep studying. If necessary move in small positioning esp now that commissions are zero!

        1. Joel, Joel, Joel. My man. You’ve been reading my playbook…

          I just keep investing and reinvesting in what I think will pay me the rest of my days. If they’re down, fine. If they’re up, so be it. I have a trotline I run, looking for ~5% IG, QDI preferreds or better. If one bites, I haul it in, put it in the lockbox and keep on chooglin’.

          No flipping, no funny stuff. Just pay me. Call me Woody Hayes, if you like: Three yards and a cloud of dust.

          JMO

          1. Camroc, is your investing style old school Woody Hayes the coaching legend?
            Or is it too old senile Woody Hayes punching Clemson football players during a game? 🙂

            1. Well, I’m counting on you to let me know when to fold them. Just send me that curmudgeon shirt & I’ll take the hint. 😉

    1. Would you pay over $37 for a $25 preferred share. That is exactly what you would be doing if the WFC-L had a par of $25 instead of $1,000.

      1. Steve, that really isnt relevant here specifically for this issue. Two differences, the issue yield of 7% is considerably higher than 5% and below now for similar quality. Also its basically uncallable until Wells common is well over $150 (forget what it is exactly). Im personally not into 5% and lower bank perpetuals. But that largely is a personal view. But…Im not without sin myself. SR-A was going to be a long term hold.
        But, the constant flipping fun began with this. It went well over $27 and I sold. But then it continued heading up peaking out at $28.47 couple months ago. I got my beginning 500 share position reestablished at $26.39 today. Would love to see it drop another buck so I could triple the position and let it be.

      2. That depends. I’ve paid $150 for a $100 ‘par’ noncallable and $80 for a $50 ‘par’ noncallable. They’re both firmly in my lockbox.

        But I also realize that what I do is not everyone’s cuppa…

        JMO

        1. I can confirm what Camroc has stated above. I was the guy who sold him the $100 par preferred for $150, and having a bit of seller’s remorse.

          I did sell another small lot after that for $160.

          Still hold a very small amount, and this time – it will not be sold!! :-))

          1. You werent the only one, Inspy! 🙂 But I have no regrets… A win-win trade I call it for the both of us.

    2. I’d rather own WFC-P which has a 20 bps higher yield but no call protection. However, a call is very unlikely for WFC-P. Certainly wouldn’t be practical to refinance it. Should rates go higher, WFC-P will do better than L.

      1. With WFC-P, you have a lot of downside risk but very little upside potential. If rates drop, it probably will be called. WFC-L has a lot of downside risk and a lot of upside potential. I think that call feature is worth a lot more than 20 bps so the L is a better buy.

        1. WFC-P should have the same upside as WFC-L for the next 15-20 bps at which point P starts to get some significant call risk. If rates move beyond that, you can always swap to WFC-L. I owned WFC-L previously but swapped from L to P around 1480.

          With P, you’re protected from downside risk from a small increase in rates. You’re seeing that today with L down significantly and P hanging in there. But if rates get past 2%, P will also get hit.

  13. For those with Schwab. STT/PRE is now STT/PRECL and showing a value of $13.88 a share. I contacted them via chat. They know the 13.88 is incorrect and they are working to fix it. So, you don’t need to contact them

    1. They better shove them out the door quickly to get those record low yields to the sleep walking public. As govt yields are creeping back up.

      1. The entire US yield curve is looking so much better. Was it mostly the China tariffs that depressed it? I guess it doesn’t matter if it was lower EPS, the Fed or China tariffs that caused it as long as it stays this way and ideally improves even more. Usually, it is a combination of things.

        1. They dont ask me that is sure, Steve! I would guess your correct. But as a side note, the yield recently had tried to move higher every time rumors of China deal is positive. There are some preferreds that have really dropped recently I have noticed. Im mostly in past call or higher relative yield plays, and resets, so I havent seen much droppage if really any…..So far….

  14. looks like swk might be redeeming swj. not 100 percent sure of this
    but if you own it i would look at it. it’s redeeming the 2052 debentures with
    a 5.75% rate.

    1. Call of SWJ from new SWK issue is in the Use of Proceeds as only purpose mentioned for new issue.

  15. Just thought that I would throw this out there. Many US companies are offering lump sum payouts to their employees when there exists a frozen retirement plan. This has to do with an overall trend of wanting to get the cohort left in the plan small enough so that the remaining liabilities (retirees, etc.) can be sold off to an insurance company. This also eliminates the need for actuaries, etc. for the plan. These offers are being done now because the interest rates used to calculate these lump sums are going to decline dramatically next year which will push the lump sums higher.

    Many of these plans do not normally offer a lump sum form of payment and this may be a one-time only offer.

  16. Company Release – 11/6/2019 9:21 AM ET
    BOSTON–(BUSINESS WIRE)– State Street Corporation (NYSE:STT) today announced that it will redeem all of its outstanding shares of non-cumulative perpetual preferred stock Series E (represented by depositary shares, each representing a 1/4000th interest in a share of Series E preferred stock)(the “Redemption”) on December 15, 2019 (the “Redemption Date”), for cash at a redemption price of $100,000 per share (equivalent to $25.00 per depositary share) plus all dividends that have been declared but not paid up to but not including the Redemption Date.

    1. Oh well, got a few cents per share on this one. It was trading close to par + upcoming dividend. What is surprising to me, is that WFC-T continues to climb this week. Same coupon and I cannot see why they would not call this after the next dividend payment which is 12-16-2019. It has jumped to $25.56 this week. Maybe I will get lucky with this one but I sure would not buy above $25.38

      1. With STT-E being called, is anybody interested in the other STT preferreds?
        -G and -D fix/floats but trading > $27 !!
        -C fixed 5.25%, callable and trading slightly above par+1 div. Callable since 2017.

        Personally, I would not buy -G or -D at such a premium, and regarding
        -C, I am debating whether it is likely not to be called soon and whether 5.25% is worth the risk (although I like state street).

        What is the III opinion on these?

        Is anybody buying these or does anybody hold them?

        Tx!

        1. On the STT-G/D, look at YTC and decide if you’re happy with those. I would not be a buyer.

          STT-C has a stripped yield of 5.22% and a small call risk. Won’t make you rich or broke.

      2. For some reason WFC has not been very aggressive about refi’ing their preferreds. In August they only did a partial call of WFCNO, which is a FTF that was yielding ~5.9%. And they haven’t issued a new pfd since 2017.

    2. Bro Bob warned us…gave me a sell signal on 600 at $25.42 a few days ago and put it to work again. Thanks again. Need more cash! I’d like to believe if I drove off now for a few years everything would just click along like an annuity payment. IGs, long Call protection, compound drip divys for a while to reinvest, a few CN resets, what could go wrong (echo…echo…echo) !?

    3. Don’t know if I’m being overly cautious about STT-E but along with the press release on STT-E being called, STT also announced the following declaration of dividends WHICH DOES NOT INCLUDE STT-E. Is that going to mean STT-E shareholders are supposed to get only $25 because dividend on it has not been declared? I have not looked to see if it might have been declared earlier..

      State Street Corporation Declares Dividends on its Non-Cumulative Perpetual Preferred Stock Series “C,” “D,” “G,” and “H”
      [Business Wire]
      Business Wire•November 6, 2019

      BOSTON–(BUSINESS WIRE)–

      State Street Corporation (STT) today announced cash dividends on each of the below outstanding series of non-cumulative perpetual preferred stock:

      Series C (represented by depositary shares, each representing a 1/4000th interest in a share of Series C preferred stock). The cash dividend is in the amount of $1,312.50 per share of Series C preferred stock (resulting in a distribution of approximately $0.3281 per depositary share) and is payable on December 16, 2019 to the holders of record of the Series C preferred stock at the close of business on December 2, 2019.
      Series D (represented by depositary shares, each representing a 1/4000th interest in a share of Series D preferred stock). The cash dividend is in the amount of $1,475.00 per share of Series D preferred stock (resulting in a distribution of approximately $0.3687 per depositary share) and is payable on December 16, 2019 to the holders of record of the Series D preferred stock at the close of business on December 2, 2019.
      Series G (represented by depositary shares, each representing a 1/4000th interest in a share of Series G preferred stock). The cash dividend is in the amount of $1,337.50 per share of Series G preferred stock (resulting in a distribution of approximately $0.3343 per depositary share) and is payable on December 16, 2019 to the holders of record of the Series G preferred stock at the close of business on December 2, 2019.
      Series H (represented by depositary shares, each representing 1/100th interest in a share of Series H preferred stock). The cash dividend is in the amount of $2,812.50 per share of Series H preferred stock (resulting in a distribution of approximately $12.18 per depositary share) and is payable on December 16, 2019 to the holders of record of the Series H preferred stock at the close of business on December 2, 2019.

  17. New TRTN C preferred quite weak. Offered @$24.87 right now after touching a low of $24.75 earlier. Probably the coupon was too low, now becoming more attractive. I sold some shipping stuff that had a share in my allocation too high.

    1. Gabriele–I hope a bunch of the new issues trade lower–they are too low in coupon and I would be a buyer at lower prices.

      1. My thoughts exactly. With a lot of cash in short-term bond funds spread across three accounts, I’m actually hoping for a repeat of December 2018 when prices dropped to more acceptable levels.

  18. AGM has earnings announcement tomorrow. Farm Bureau reports Chap 12 Farm Bankruptcy Filings up again, tariffs may not help report. Several prefs out there. The trend has been deteriorating and the processes here move slowly. Always liked the govt guar. I sold today.

    1. A long term bond really holding debentures. May be a look at what may happen during a rate-up scare…eventually it will happen.
      I had a conversation yesterday with someone who has assets at Ed Jones an ‘esteemed buy-hold forever’ private asset mgnt firm based here in Ol StL. He said he can NOT place stops under any holdings. OK. I asked him if he had ever considered putting a sell limit OVER the price as a consideration also? Of course, this can be done mentally also. If it hits, you have sold and move down to a cheaper security or hold some cash. Your annual goal had been achieved. This is what alot of bloggers here talk about and it is taken as “active flipping”, but in this pref market right now it is actively sell-stopping; even though the term ‘flip’ is used. HGH was stopped out for me and prob early, but my goal for it had been achieved.
      IE: If you can get a year’s worth of gain ( prob short term fully taxable!) in the first three months and a sell stop triggers then you have cash if things swoon or even rebuy that security later cheaper. I think THAT is what some of the pros here are really referring to with ‘flipping’. Interest rate perception is pushing prefs all over and it may be a matter of survival or rate torture.

  19. Anyone on here know anything about PepsiCo issuing a “green bond” ? [The company announced its pricing on Monday, Oct. 7, of $1 billion in senior notes due in 2049, which collectively sport a coupon of 2.875%, payable semianually.] I know that’s super low coupon, but the premise behind it is intriguing. [However, this newest debt offering is unique for PepsiCo in that it represents the organization’s first “green bond.” Proceeds will be used solely to fund sustainability initiatives under three major priorities: “Sustainable Plastics and Packaging,” “Decarbonization of Operations and Supply Chain,” and “Water Sustainability.” ] Bracketed text from Motley Fool website.

    I’ve been looking for a place to park my cash now that I sold out of over half my positions. Pays more than T-bills and, theoretically, should be rock solid from a cash preservation standpoint.

    I type in the ticker (PEP) on the site here and nothing at all comes up??? A quick look on Pepsi’s website was also not too informative. Found something called “Metro Notes” that are not even available to U.S investors or institutions.

    1. Mark – As a suggestion, you might want to familiarize yourself with EDGAR. Given you have heard of Pepsico issuing a “green bond” and you know the date or date range, it’s an easy search to find the prospectus for the issue you’re looking for. https://www.sec.gov/Archives/edgar/data/77476/000104746919005653/a2239662z424b2.htm provides the final prospectus for the issue you’re talking about… It took about 30 seconds to find it… The main website Search site is https://www.sec.gov/edgar/searchedgar/companysearch.html It’ll probably take you awhile to get figure out which types of forms you might be looking for, but with a little experience you’ll catch on quite easily….. Hope this helps.

      1. 2WR, Thanks. Here I am trying to look on the company website… I’ve heard of EDGAR before, but never visited the site. I will check there in the future – actually easier than company website – at least in this case; probably in most….

        Yeah, I can see it can take a while to find the correct form. I clicked on at least 8 links before I found the page you linked. I found one for 0.875%. They actually have takers for that? Geez. The mattress is looking better and better… 🙂

        1. Mark – Do a little exploring on the site and I’m sure you’ll catch on pretty quickly…. You’ll also note that there is a link on the site for definitions of the different file classifications, however you might get a little more out of the basics on the Investopedia site – https://www.investopedia.com/articles/fundamental-analysis/08/sec-forms.asp. It’s tedious I suppose but good to have a handle on the basics…. Having said that, I still find it hard to figure out how to get the most out of 13D and the other variations of “13” filings when they’re filed… Most of the time, it’s tough at least for me to make heads or tails out of the details.

  20. For the TDJ/TDE holders…. The parent company is getting CRUSHED today in the markets…

    Telephone and Data Systems, Inc. (TDS) is currently at $22.12, down $3.97 or 15.2%

    — Would be lowest close since Jan. 25, 2016, when it closed at $21.89

    — On pace for largest percent decrease since Nov. 7, 2012, when it fell 16.56%

    — On Thursday, Telephone and Data Systems reported net income attributable to TDS shareholders and related diluted earnings per share were $18 million and $0.15, respectively, for the third quarter of 2019 compared to $46 million and $ 0.41, respectively, in the same period one year ago

    — Currently down three of the past four days

    — Currently down two consecutive days; down 17.07% over this period

    — Worst two day stretch since the two days ending Aug. 8, 2011, when it fell 17.41%

    — Down 32.01% year-to-date; on pace for worst year since 2008, when it fell 49.28%

    — Down 67.17% from its all-time closing high of $67.40 on July 19, 2007

    — Down 35.55% from 52 weeks ago (Nov. 2, 2018), when it closed at $34.33

    — Down 39.89% from its 52 week closing high of $36.81 on Feb. 20, 2019

    — Would be a new 52 week closing low

    — Traded as low as $21.44; lowest intraday level since Feb. 19, 2016, when it hit $21.05

    — Down 17.82% at today’s intraday low; largest intraday percent decrease since Aug. 2, 2019, when it fell as much as 18.66%

    All data as of 12:04:22 PM

    Source: Dow Jones Market Data, FactSet

    1. A4I, Telecoms getting treated bad when they head to dog house. And its hard to escape. That being said I bought 200 more TDE at 25.22 this morning on sell rout. That payment is coming in 2 weeks. Probably cull the herd soon though.

      1. Grid,
        I took advantage also and bot another slice of TDE as well. The numbers that the parent reported weren’t catastrophic. Total short squeeze on the common and a small birp on the ETD. Also snatched up more of the 5yr call protected CHCSM at a great QDI yield.

    2. I missed the chance to add to my TDE at the bargain price today. Personally, I’m actually glad to see the common stock down big and a big miss in their earnings report. Makes it less likely that they’ll call TDE/J which is my biggest concern.

      Long term I have no concerns about this company. They’ll be fine once 5G kicks in.

      1. I would think that missing numbers will further motivate them to call TDS and US wireless preferreds to save money. I hope they don’t but they have several callable in the 7% range.

        1. My thinking is that their cost of common equity capital is going up then their cost of preferred equity capital is also rising. For that matter there a cost of debt capital is also increasing. The higher their cost of preferred equity capital, the lower the savings from refinancing. If one part of the capital stack declines then it should impact the entire stack since all lauers are correlated. A low common stock price also eliminates the option of issuing common stock to redeem the preferred. SITC recently did that when their common stock spiked higher.

      2. Landlord, I am thinking a bit in the opposite direction, but based only because I have let my allocation size get too big here in TDE/J. I was telling Alpha offline here this morning, three years ago, I wouldnt have touched this outfit with a 10 ft pole. Mostly from me being considerably more conservative then, than as a reflection on TDS.
        They have their debt maturities spread out, have ample access to cash, and not over leveraged. And they recently got re-rated. But, telco is a brutal high cost, fast changing sector. They arent even really a competitor with the Big 4, being considerably smaller with US Cellular only really thriving in a few areas. And they are also in the same segment with Windstream and Frontier and that is a total money hell hole.
        Im going to scalp my interest payment and then look to push this issue back into the smaller blip portion that for me it really needs to reside at.

        1. Grid, I think the fact you don’t think a 6.9-7% yield compensates for the risk here is exactly why I’m willing to bet they won’t be calling TDE anytime soon. The pricing won’t be great on a new issue with the common stock crashing. Understandbly would spook a lot of investors. I’ve got a normal size full position. Just wish I had added more on the blip below stripped par.

          1. Landlord, I dont know if the yield supports the risk is true, but we could say that about a lot of things now couldnt we, ha. There certainly isnt any monetary risk call wise here at this price point. I dont really have what I call a “full position size”. But I am thinking I need to go on a diet here soon with this holding. If for nothing else out of principal as there is no way I can justify this being the biggest issue in my stash as it presently is.

  21. Even though there has been no question in my mind based on past experiences that SLMNP is qualified, I will provide another info point. I noticed my SLMNP dividends were deposited today in my TD. And it states “Qualified Dividend-SLMNP”.

    1. Gridbird

      Thanks re-SLMNP. Fidelity shows deposit but no statement about Qualified or not. That is a nice service that TD provides…..I wonder if they have other great benefits that merit thinking of opening an account there.
      Love FIDO but they have many restrictions on purchasing ETN’s and some foreign holdings, as well as some preferreds. Do you happen to know if TD allow trading in a wider set of instruments than Fidelity?

      1. Malka, I have to Fidelity experience, but TD is good for Canadian resets and also pretty decent in IPOs also. Its my favorite over Ally and Vanguard that I also have.

    2. Schwab is still showing SLMNP divvy as N-Q 🙁

      Anyone want to volunteer to get this straightened out?

  22. Boston Properties outlook revised from stable to negative by S&P. Their preferred went ex-div today and closed at 25.18

    1. Yes Newman, we discussed it briefly yesterday. DTEFU is the ticker. I bot in yesterday.

    2. has a stock purchase contract and enough clauses to make it hard to understand. I bought a little to flip based on pattern recognition and not any kind of thorough analysis.

    1. I have a CD with HSBC….interesting they are the only bank that’s late on their monthly payment…..

  23. * JPMORGAN CHASE ANNOUNCES OFFERING OF PREFERRED STOCK AND REDEMPTION OF OUTSTANDING PREFERRED STOCK

    * JPMORGAN CHASE & CO(JPM) – LAUNCHED AN OFFERING OF FIXED-RATE NON-CUMULATIVE PREFERRED STOCK, SERIES GG WHICH WILL BE REPRESENTED BY DEPOSITARY SHARES

    * JPMORGAN CHASE & CO(JPM) – INTENDS TO REDEEM SOME/ALL OF ITS 90,000 OUTSTANDING SHARES OF ITS 5.45% NON-CUMULATIVE PREFERRED STOCK, SERIES P ON DEC. 1

      1. Another one where investors are taking it on the chin. It was trading 2% over where it currently is. At $25.12. Ex-div was yesterday and payment date is 12-02. Is the payment on 12-02, $25 or is it $25 plus a months worth of interest. I would think it’s $25 on 12-02. It would be helpful if somebody with more experience would explain, In my view, the ex-div is occuring a month before the payment date but includes the interest for the month Nov up until 12-02, so I think it redeems at $25 but would be curious to know.

        1. Steve,
          It can only be redeemed on a divvy payment date per the prospectus. I think you’re right…A holder would get $25 and no further divvy accrual between now and then since there is none accruing. Payment date is on 12/1, though, I believe. No dividend should be accruing between the ex-date and the payment date. Divvies only start accruing after the payment date thru till the next ex-date coming up, roughly. Then again, I haven’t had enough coffee yet, so I’m shooting from the hip on this one and may be corrected.

          We may redeem the Preferred Stock on any dividend payment date on or after March 1, 2018, in whole or from time to time in part, at a redemption price equal to $10,000 per share (equivalent to $25 per depositary share), plus any declared and unpaid dividends, without accumulation of any undeclared dividends.

          https://www.sec.gov/Archives/edgar/data/19617/000119312513029913/d402650d424b5.htm

            1. Those are the folks still asleep at the wheel… I don’t like these type of calls that are made w/o the ability to at least scoop up one more divvy. I know, it’s all legal and well known that it was past 1st call, but still… just my personal feeling. I don’t hold this one, but do hold the JPM C and D flavors.

              When it comes to banking preferreds from the likes of BAC or JPM or Citi, I usually bail 6 months or more before 1st call when you can usually sell and make more than that accrued divvy if you held until 1st call and it was actually called. There’s just no system to game anymore and the likelihood of an actual call on the 1st avail date is just too high now. Would rather take my gains and find another sandbox.

          1. I’m just catching up with JPM-A. It does not make sense to me that this will be called on 12/1 and divs do not accrue. That is not the way NTRSP is going to work… Every other issue called on 30 days notice always accrue up until the call date or ex-div date depending on circumstance… If this is written differently please show where. If it’s to be called at 25.00, then those who have owned this from 9/1 who have experienced accrued divs to date would also get screwed out of their accrued divs…. That makes no sense.

            1. Here is the language from NTRSP “On any dividend payment date on or after October 1, 2019, the Series C Preferred Stock may be redeemed at our option in whole, or in part, at a redemption price equal to $25,000 per share (equivalent to $25 per depositary share), plus any declared and unpaid dividends, without accumulation of any undeclared dividends.” Isn’t it saying the same thing and yet NTRSP is trading as if upon call accrued up to call date will be paid… What makes JPM-A different?

              1. For the record, the dividend for JPM-A for December HAS ALREADY BEEN DECLARED so this will NOT be called at par without accrued.

                JPMorgan Chase Declares Preferred Stock Dividends

                New York, October 15, 2019 – JPMorgan Chase & Co. (NYSE: JPM) (“JPMorgan Chase” or the “Firm”) has declared dividends on the following series of the Firm’s outstanding preferred stock, each of which is represented by depositary shares:
                Preferred Stock Series Distribution (per Preferred Share) Distribution (per Depositary Share)
                5.45% Non-Cumulative Preferred Stock, Series P $136.25 $0.340625
                6.125% Non-Cumulative Preferred Stock, Series Y $153.13 $0.382825
                6.10% Non-Cumulative Preferred Stock, Series AA $152.50 $0.381250
                6.15% Non-Cumulative Preferred Stock, Series BB $153.75 $0.384375
                5.75% Non-Cumulative Preferred Stock, Series DD $143.75 $0.359375
                6.00% Non-Cumulative Preferred Stock, Series EE $150.00 $0.375000

                The dividend payment date is Sunday, December 1, 2019, to stockholders of record at the close of business on November 1, 2019. The dividend will be paid on Monday, December 2, 2019.

                1. Ahah! The point is NOT that JPM-A will be called on Dec 1 without any accrued… The point is that DATE OF RECORD is 11/1 and, therefore, ex-div is today, right? That means a buyer of JPM-A today will not be entitled to the dividend… I think I’m getting the picture…..

                    1. So, if I own JPM-A, and I sell today, I will get the Dec dividend, correct?

                      By selling now, I could gain another 7 cents per share.

                      Is this correct?

                    2. Inspbudget – That’s the way I would read it….. It is strange on many of these higher visibility called bonds/preferreds but they do frequently trade above the called value for quite some time right up to the call date….

                    3. Thanks, 2WR. I just discovered I had 400 shares in my IRA – bought a very long time ago, so had forgotten I had it.

                      With the Dec dividend, I will have a net gain, but if I can sell my holdings now, I can get another few cents.

                      I’ll do it.

  24. B. Riley Financial Board Approves Repurchase of Up to $50M of Outstanding Shrs For Yr Ending Oct 31, 2020 >RILY

    1. Was looking for an actual date of the redemption but can’t find it thus far. 2WR and I are monitoring this one closely. For some reason Dow Jones or somebody shot out this headline I posted but had no real info to follow up on. IR site shows nothing that I can find as of yet. Of course, I’m talking about RILYL.

      1. RILY conference call took all of about 20 minutes and didn’t really say much of anything that wasn’t covered in the press release. There was no mention of RILYL or when they’re going to follow through and call them as was the designated use of proceeds purpose for issuance of RILYN on 9/28, however, IR had previously mentioned they plan to call before yearend… Only 2 questions were asked in the CC and the only interesting info to come from the questions was that today’s announcement of a “Brand Investment Portfolio” will be “highly accretive.” RILY sure seems to be hitting on all cylinders and they brag about using their strong balance sheet to their advantage, but it sure seems as though their strong equity performance is fueled with an ever increasing appetite for debt and now, preferreds… They even announce another 50 mil share buyback program which will of course reduce the equity base behind the notes and preferreds even further if/when executed.

        1. RE: RILY – Authentic Brands/RILY purchase of Barney’s approved by courts and is now set to close on Friday..

    1. DTE Energy announces pricing of common shares and equity units

      October 29, 2019
      DETROIT, Oct. 29, 2019 /PRNewswire/ — DTE Energy (NYSE: DTE) today announced that it has priced its previously announced offerings of 2.4 million shares of its common stock at $126.00 per share and 23 million equity units. Each equity unit will be issued in a stated amount of $50 ($1.150 billion aggregate stated amount) and will consist of a contract to purchase DTE Energy common stock in the future and a 1/20, or 5%, undivided beneficial ownership interest in DTE’s 2019 Series F 2.25% remarketable senior notes due 2025 having a principal amount of $1,000. The remarketable senior notes are subject to remarketing to commence no earlier than July 28, 2022. The offerings are expected to close on or about November 1, 2019, subject to customary closing conditions.

      Total annual distribution on the equity units will be at the rate of 6.25%, consisting of interest on the 2019 Series F remarketable senior notes and payments under the related stock purchase contracts. The reference price for the equity units is $126.00 per share. The threshold appreciation price for the equity units is $157.50 per share, which represents a premium of approximately 25% over the reference price. Under the purchase contracts, holders will be required to purchase a variable number of shares of DTE Energy common stock no later than November 1, 2022.

      DTE has granted the underwriters an option to purchase during the 30-day period beginning on the date hereof up to 360,000 additional shares of DTE Energy common stock,. DTE has granted the underwriters an option to purchase during the 13-day period beginning on the initial issuance date of the equity units up to 3 million additional equity units to cover over allotments.

      DTE intends to use the net proceeds from these offerings, which are expected to be $295 million from the offering of its common stock or $339 million in the aggregate if the underwriters’ option is exercised in full and $1.121 billion from the offering of equity units or $1.268 billion in the aggregate if the underwriters’ over allotment option is exercised in full (in each case, after deducting underwriting discounts and commissions but before deducting other offering expenses), for the acquisition of midstream natural gas assets.

      Barclays, BofA Securities, J.P. Morgan, Wells Fargo Securities, Citigroup and Scotia Howard Weil are acting as joint book-running managers for the offerings.

      The offerings will be made under an effective shelf registration statement, filed with the U.S. Securities and Exchange Commission (“SEC”). This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities law of any such jurisdiction. Any offers of securities will be made exclusively by means of a prospectus supplement relating to such securities and accompanying prospectus. Copies of these documents may be obtained by contacting Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, at (888) 603-5847 or barclaysprospectus@broadridge.com; BofA Securities, Inc., Attention: Prospectus Department, 200 North College Street, NC1-004-03-43, Charlotte, NC 28255-0001, at (800) 294-1322, dg.prospectus_requests@baml.com; J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue Edgewood, NY 11717, at (866) 803-9204; Wells Fargo Securities, LLC, Attention: Equity Syndicate Department, 375 Park Avenue, 4th Floor, New York, NY 10152, at (800) 326-5897; Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, at (800) 831-9146; and Scotia Capital (USA) Inc., 250 Vesey Street, 24th Floor, New York, NY 10281, Attention: Equity Capital Markets, at (212) 255-6854, us.ecm@scotiabank.com.

      About DTE Energy
      DTE Energy (NYSE: DTE) is a Detroit-based diversified energy company involved in the development and management of energy-related businesses and services nationwide. Its operating units include an electric company serving 2.2 million customers in Southeast Michigan and a natural gas company serving 1.3 million customers in Michigan. The DTE portfolio includes energy businesses focused on power and industrial projects; renewable natural gas; natural gas pipelines, gathering and storage; and energy marketing and trading.
      Nomad

        1. Andrew, yes, that’s my read of what’s in the prospectus. Interest will be paid, non QDI, just like a baby bond.

  25. STT has sold $1.5 billion in Fixed to Float notes due 2025 and 2034, at 2.354% and 3.031%, respectively.

    This is more than sufficient to redeem both STT-E and STT-C, if the company wishes.

    STT-C has a better chance of surviving because of its lower coupon.

    1. Bob-in–DE–saw that yesterday ad thought the same thing although they do not mention that as a use of proceeds.

      1. Picked up psb-v today at $25.30. This was an order i put in sometime back, now i am wondering if it is going to be called. Anyone heard anything?

    1. Thanks, IF, was wondering. Bailed a while ago and moved into the M and O flavors . Still sorry to see it go. Agree with Grid and other III pals, time to tread lightly with new low yield issues.

  26. Northern Trust Corporation announced the launch of a proposed public offering of depositary shares, designated Series E Non-Cumulative Perpetual … Corporation intends to use the net proceeds from the sale of the Depositary Shares to redeem outstanding shares of its Series C Non-Cumulative Perpetual Preferred Stock

    1. 8-K now confirms NTRSP will be redeemed (to nobody’s surprise)

      On October 29, 2019, Northern Trust Corporation (the “Corporation”) announced the launch of a proposed public offering (the “Offering”) of depositary shares, each representing a 1/1,000th interest in a share of newly-designated Series E Non-Cumulative Perpetual Preferred Stock (the “Depositary Shares”). The Offering is subject to pricing, which has not yet occurred. If the Offering is priced and proceeds to closing, the Corporation intends to use the net proceeds from the sale of the Depositary Shares to redeem outstanding shares of its Series C Non-Cumulative Perpetual Preferred Stock, $25,000 liquidation preference per share (the “Series C Preferred Stock”). Depositary shares, each representing 1/1,000th interest in a share of the Series C Preferred Stock, are currently traded on The NASDAQ Global Select Market under the symbol NTRSP.

  27. You’ve been warned! STT has filed a red herring for an issue of 2025 and 2034 notes. It’s going to be big. Pricing should come out today, Tuesday.

    Of note, they are fixed-to-float, float based on SORF, and will not be exchange listed. Will probably be available on the bond desk for those liking fat spreads and low coupons.

    Use of proceeds states in part:

    “may include, without limitation, working capital, capital expenditures, investments in or loans to our subsidiaries, refinancing of outstanding indebtedness, refinancing of outstanding capital securities, share repurchases”.

    STT-E, with its 6% coupon, is a prime candidate for redemption. STT-C, at 5.25%, may survive.

    I own copious amounts of both.

    1. Thanks Bob. I took my six cent gain in STT-E. Maybe I shouldn’t be picking up pennies in front of a steamroller! 🙂

  28. For owners of BAC-Y, the call date is coming on 1/27/20 . The shares are going for 25.63 currently.

  29. MVCD has traded roughly .80 lower since July. It can be called on 11/30/19. Anyone else own this and what are you thoughts on an early call? Thanks

    1. A call doesn’t make a lot of financial sense unless they want to issue much longer paper. It costs them 3%+ to issue a security so the breakeven rate on a new issue would be 5.25%. I doubt they can do much lower than that so why bother. (They’ll probably announce a first thing in the morning! 😉

    1. OSBCP will probably be pinned to not more than par+1div from now on, the fear of call has certainly risen dramatically, even though no call was announced.

      I sold 1/2 my position for a small cap gain. Intend to keep the rest to the bitter end.

      1. Inspy – But a quarterly div = 78 cents and it’s trading at 10.27…. What am I missing? I don’t know this one, but assuming it’d take 30 days to do a call, a buyer should be guaranteed about 10.52 even if it gets called today…. I took a shot and bot at 10.27 and will now check out what exactly I’ve bot… lol

          1. I was, and am, pretty bummed about OSBCP. However, I bought a few hundred shares of PSPBZ right at par. Still a loss of income, but at least I have 5 years of this smaller income stream. Ugh. These higher yield issues falling like bowling pins – really hoping that AILLL, CNLPL & CNTHP do not suffer the same fate.

            1. Inspy, who knows, but I am thinking you are reading a bit more into what I posted on SI this morning. Remember that happened Thursday. And CEO said that was second option to M&A. And…The last time OSBCP was mentioned in a CC by an analyst 3 years ago, the old CEO said when questioned “They were looking at it”. Well they didnt look very close then did they, lol..
              I was just posting info, not a panic rout. Hell I saw the price drop in my car about 230, and put a bid in at 10.26 and it hit for 1500. Sell at 10.50-60, I get it, definitely prudent….But dumping 7 cents above your next payment you know you will get? Without any definitive direction? That is crazy for an issue like this. He clearly said he was looking at M&A as priority one.
              That doesnt happen overnight. That takes months and months to explore.

              1. Grid, I unloaded 1/2 my position just to be safe, still holding onto 1000 shares. These will be for keeps, since my costs basis for them is right at $10.19.

                But, if the price ever goes down below that level, I will likely buy back.

              2. Grid, I’ve owned OSBCP since July 2011, my CEF fixed income analyst was on a conference call with one of my clients and told him she was buying this Trust Preferred for herself. Many times I thought I had made a mistake and that the Fed would definitely have to bail this Aurora based bank out (or shutter them) because they were in real financial trouble. I don’t believe very many retail investors knew they were alive until you mentioned them in a post many years ago (I believe January 2016) and I added to my position then. I again bought another 1000 shares today at $10.26 and hope that the Tier 1 status will stop Old Second from a redemption for many years to come…
                Please don’t let this gravy train end, Nomad

                1. Nomad, yes they were in a world of hurt back then…And OSBC is a classic example of your government dollars at work through TARP….Feds bought preferred stock for OSBC and then dumped them for 35 cents on the dollar largely apparently bought up by insiders. And then insiders in turn flip them for 93 cents on the dollar. Your tax dollars at work! 🙂
                  Old Second plans to use the money from the stock sale to redeem about a third of the $73 million in bailout funds the bank received from the Treasury Department in 2009 under the Troubled Asset Relief Program, according to the filing. Old Second says it has negotiated a “non-binding letter of understanding” with the holder of those shares to redeem them at nearly 93 percent of their face value.
                  That’s a substantial premium above what the investors who now hold the TARP shares paid for them less than a year ago. The Treasury, as part of a program to unload all of its remaining bailout shares, auctioned Old Second’s at a little over 35 cents on the dollar.
                  https://www.chicagobusiness.com/article/20140122/NEWS01/140129921/old-second-bank-insiders-could-profit-on-former-federal-bailout-shares

          2. See what you get when you jump in without looking carefully??? A duh, out of character moment for me…. Thanks, Inspy…

            1. 2wr, I’m glad someone else does things like that. I’ll be happy to lend you my dunce hat if you’d like to borrow it – though it does evidence some heavy wear from yours truly. And if it’s not something we do, the holding has it’s own rug-pulling like F-B. Previously sold off 1/2 of an oversized position then after F’s downgrade to BBB- late Friday I let go the other half go this morning. Nice payor though not interested in holding anything hanging over the precipice of IG v non-IG as you know the next step is a doozy and resulting forced selling would be unpleasant.

        1. 2whiteroses,
          Correct me if I’m wrong, but I believe OSBCP would pay a divy of .19 cents on the next payment date. That equates to .78 cents for all 4 quarters or 7.80% on a $10 share.

          Leslie Joy

  30. Is SAB at serious risk of being called soon? This 6.75% 2003 BB has a first call date of 12/19/19. It is trading at $25.90 with the next ex date 12/12. Saratoga can issue below 6% considering what lesser BDC’s have done, and I’m getting nervous and thinking about selling. Thoughts?

    1. Wilson – For the record the first call is actually 12/21 according to the prospectus despite quantumonline saying it’s 12/20. Having said that, I would believe the threat of call would be high, high enough that I have sold about 2/3 of what I owned of SAB, however, that risk is somewhat mitigated by the fact that BDCs in general are all looking to leverage up not down nowadays. That might have SAR leaving these outstanding for awhile, but I believe SAB is their most expensive debt outstanding so… I also think a few comparable BDCs have recently tapped the bond market (not baby bond market) for 5 year notes in the range of 4.375% to 4.75% so it sure would seem to be very easy for SAR to follow suit even though it’s a relatively small player. To me, the important date to pay attention to would be most likely in the week of November 18. If they’re going to refinance via a new issue, they would most likely float it no later than that week so they have the time to close and announce a call 30 days before call date as required. Of course, after November 19 approx, they’ll always be able to call at any time on 30 day’s notice so there’s nothing magic about the 12/21 first call date other than as an indicator of how actively they plan to manage this costly outstanding issue. But as it’s trading now at over 2 times the next coupon payment selling some does seem to make sense.

      1. Thanks for the reply, 2white roses, but I think first call is 12/21/19. QuantumOnline says 12/19/19, but I just looked at the prospectus, and it says 12/21/19. In view of that and your comments, I may parachute.

    1. There are very few sacred cows anymore. Many of the will-never-be-called issues are going to be called if rates stay as is or move lower.

      Getting harder for BODs and management to ignore past call issues.

      1. Can somebody explain to me why the redemption value is $25 + .22 when the redemption date is 11/26? By my estimates ex div date is 12/30 which puts redemption date ~ 2/3 into the quarter so accrued dividend should be ~ 2/3 * .485 = .32

        So should not redemption price be 25.32?

        Awesome site, I have been a long time reader and learned many things here.

  31. ABR closed on $110m of 4.75% senior notes earlier this month. They have 3 outstanding preferreds ranging from 7.75% to 8.5% all currently callable. I’ve been selling my ABR-A anticipating a possible call upcoming. The last of it went today.

    1. I must be getting old and forgetful. Tim posted this a few days ago. I remembered the information but forgot the source. Thanks Tim!

  32. Probably not worth mentioning but since it is a preferred stock IPO. YCBD-A paying 8% and opening a good deal below par. Dubious company in a sector that doesn’t normally use preferred stocks.

    1. Seems to be a convertible preferred and converts to CBD stock.

      Chart of CBD is not the best and this preferred is trading lower each day, now yielding over 9%. Though the yield is tempting, being convertible into a stock in the Cannabis space is a sure risky and 9% yield not enough to take it (for me)

      I would rather consider another Mandatory pref with a much better stock in a growth sector such as AVGOP with a 8% coupon.

      1. Martin G and mSquare this is my research on YCBD:

        Just what could you like from this horrible company (Name use to be Beauty and Pin-Ups then changed to Level Beauty Group then Level Brands and now cbdMD) with no proven track record or any reasonable path to profitability:
        EBITDA NEGATIVE -$11.81 Million
        Net Income NEGATIVE -$63.78 Million
        “Earnings” Per Share NEGATIVE -$2.301
        Cash Flow NEGATIVE -$7.39% Million
        Book Value 0.92 cents
        Market Cap $105 Million is on a wish and a pray that they survive with their hype as they will keep burning through their cash and issuing more shares (especially to management through convertibles)…
        Total Liabilities -$75.7+ Million (that’s ridiculous)
        Accumulate Deficit NEGATIVE -$70.78+ million (a BIG loser)
        Read the balance sheet and you will see that they are just an illusion as they carry $55+ million of “goodwill” (means nothing as you cannot spend “goodwill”) and whopping $22.5+ million of “intangible” assets (again means nothing).
        On December 20, 2018 the Company, and its newly organized wholly-owned subsidiaries AcqCo, LLC and cbdMD LLC, completed a two-step merger (the “Mergers”) with Cure Based Development, LLC, a Nevada limited liability company (“Cure Based Development”). Upon completion of the Mergers, cbdMD LLC survived and operates the prior business of Cure Based Development. On April 10, 2019, cbdMD LLC was renamed to CBD Industries LLC (“CBDI”). As consideration for the Mergers, the Company had a contractual obligation, after approval by our shareholders, to issue 15,250,000 shares of our common stock to the members of Cure Based Development, of which 8,750,000 of the shares will vest over a five year period and are subject to a voting proxy agreement, as well as to issue another 15,250,000 shares of our common stock in the future upon earnout goals being within the next 5 years. The Company’s shareholders approved the issuance of the 15,250,000 shares of common stock and they were issued to members of Cure Based Development on April 19, 2019. CBDI produces and distributes various high-grade, premium cannibidiol oil (“CBD”) products under the cbdMD brand. CBD is a natural substance produced from the hemp plant and the products manufactured by CBDI are non pyschoactive as they do not contain tetrahydrocannibinol (THC).
        Please… Nothing but HYPE
        Stay away from this company until they can show at least a hint of profit or real free cash flow. Smoke Em’ If You Got Em’!
        Time flies over us but leaves it’s shadow behind, Nomad

  33. W. R. Berkley Up Over 5% After 3Q Earnings, On Pace for Largest Percent Increase in Over a Decade. This might cap WRB-B, it’ll be interesting to see if they call it.

  34. A. Shulman SLMNP dropped $8.60 to $1025.00 today on news it has been fully purchased by LyondelBassell. Full press release is on LYB website.

    1. Howard, I am not following what you are saying. LYB fully acquired Shulman in August of 2018. The preferreds are owner optional redeemable. What press release are you referring too?

    2. Thanks but I don’t see how this news would impact the value of SLMNP. Can anyone explain?

    3. You folks are absolutely correct. The latest ? news on the websites is over one year old and I was reviewing it too fast. Too late, too late, for an important date. I also was confused as I thought the same as you’all, that Schulman was already a subsidiary of LYB. My error.

      1. Howard, you are getting “Sundowners” like me already, lol. At night when I have something that requires real thinking, I just put it off until morning right after the java kicks in.

        1. Mr Gridbird: I was just flying through a bunch of things and didn’t even see the date.
          Yes, I had thought the transaction took place long ago and was not careful enough.
          At this point, I have so many holdings I cannot keep proper track of them.
          The fact that one can make money on appreciating preferred issues has bolloxed up my investing system, which is to buy and HOLD.
          But, when you can earn 2-3 years of dividends by selling for a profit I am pretty much forced to sell and look for another product.
          So, I have traded far too often this year and have too many holdings,
          and I am moving too fast almost daily. I hardly have time to read the cartoons any longer.
          I am sorry I mixed up a few readers .I will do better next time ( by NOT posting comments) except for this one.
          Thanks

          1. Howard, you made a mistake, welcome to the club! Heck SLMNP also was one of my erred postings earlier this year. I read enough (and read and read) to determine SLMNP had a buyers “put” at $1000. Except there was one little problem…I was wrong. A fellow forum poster dug deeper with company and found out that there was indeed a “put”, but at about $802.

          2. Howard–no big deal–please continue to post comments–heck if all of us that made mistakes quit posting there would be no one left.

  35. Capital One Announces Full Redemption of Depositary Shares Representing Interests in Its Series C and Series D Preferred Stock
    (COF-C) & (COF-D)

    Full Redemption of Depositary Shares Representing Interests in its Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series C, and Full Redemption of Depositary Shares Representing Interests in its Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series D

    McLean, Va., October 21, 2019 – Capital One Financial Corporation (NYSE: COF) today announced that it will redeem all outstanding shares of its Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series C, $0.01 par value per share (“Series C Preferred Stock”), and the corresponding depositary shares representing fractional interests in the Series C Preferred Stock (“Series C Depositary Shares”). Capital One will also redeem all outstanding shares of its Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series D, $0.01 par value per share (“Series D Preferred Stock”), and the corresponding depositary shares representing fractional interests in the Series D Preferred Stock (“Series D Depositary Shares”).

    The Series C Depositary Shares (NYSE: COF PRC, CUSIP: 14040H600), each representing a 1/40th interest in a share of Series C Preferred Stock, and the Series D Depositary Shares (NYSE: COF PRD, CUSIP: 14040H709), each representing a 1/40th interest in a share of Series D Preferred Stock, will be redeemed simultaneously with the redemption of the respective Series C Preferred Stock or Series D Preferred Stock, in each case at a redemption price of $25 per depositary share (equivalent to $1,000 per share of preferred stock). All 20 million outstanding Series C Depositary Shares, and all 20 million outstanding Series D Depositary Shares, will be redeemed on the dividend payment date of December 2, 2019.

    Regular dividends on the outstanding shares of the Series C Preferred Stock of $15.625 per share (equivalent to $0.390625 per Series C Depositary Share) and regular dividends on the outstanding shares of the Series D Preferred Stock of $16.750 per share (equivalent to $0.41875 per Series D Depositary Share) will be paid separately to holders of record as of the close of business on November 15, 2019, in the customary manner. Accordingly, the redemption price for the Series C Preferred Stock and the redemption price for the Series D Preferred Stock will not include any accrued and unpaid dividends. On and after the redemption date, all dividends on the shares of Series C Preferred Stock and all dividends on the shares of Series D Preferred Stock will cease to accrue.

    The Series C Depositary Shares and the Series D Depositary Shares are held through The Depository Trust Company (“DTC”) and will be redeemed in accordance with the procedures of DTC. Payment to DTC for the Series C Depositary Shares and the Series D Depositary Shares will be made by Computershare Trust Company, N.A., as redemption agent, in accordance with the Deposit Agreements that govern the Series C Depositary Shares and Series D Depositary Shares. The address for the redemption agent is as follows:

    Computershare Trust Company, N.A.
    Attn: Corporate Actions
    150 Royall St.
    Canton, MA 02021

  36. Looks like SITC-J is being partially called.

    https://seekingalpha.com/news/3507481-site-centers-minus-3_6-percent-stock-offering-starts

    Site Centers (NYSE:SITC) drops 3.6% in after-hours trading after starting a public offering of 10.5M shares of common stock.

    Sees granting greenshoe option for up to an additional 1.575M shares of common stock.

    Plans to use proceeds to redeem a portion of depositary shares representing outstanding 6.50% class J cumulative redeemable preferred shares, which have an aggregate liquidation preference of $200.0M.

  37. Business Wire October 21, 2019 08:00:00 AM ET
    Further Enhances Industry-Leading Program That Rewards Clients for Banking, Borrowing and Investing

    CHARLOTTE, N.C.–(BUSINESS WIRE)– Bank of America today announced that Merrill Edge Self-Directed will expand its zero-dollar online trade benefits, offering unlimited commission-free stock, exchange-traded fund (ETF) and options trading to clients in all tiers of its Preferred Rewards program .1 This expansion further enhances the benefits of this unique program, which rewards members for their full relationship across Bank of America deposit and Merrill investment accounts. Approximately 87 percent of trades on the Merrill Edge Self-Directed platform were already commission-free through the benefits offered to members of the program.

    “We began offering zero-dollar trading 13 years ago as one of the many ways we reward clients for doing business with us,” said Aron Levine, head of Consumer Banking and Investments at Bank of America. “We take a unique and innovative approach to rewarding clients across their entire financial lives. By expanding to unlimited free trading for our Preferred Rewards members, we’re delivering on our promise to help make clients’ financial lives better.”

    In addition to moving to zero-dollar trades for all members of the program, Merrill Edge Self-Directed clients not enrolled in Preferred Rewards will now receive flat-rate pricing of $2.95 for online stock and ETF trades – down from $6.95 – with no trade or balance minimums. The new pricing is the latest offering within a powerful combination of tools, people and know-how to help Merrill clients in all life stages and across the entire wealth spectrum through Merrill Edge Self-Directed, Merrill Guided Investing, and Merrill Lynch Wealth Management.

  38. Capital One Finance COF/PRI on Schwab
    5%, split investment grade, 1st call 12/1/24, perpetual, non-cum
    rising slowly last 4 weeks, now 25.10 today

    Any opinions?

    1. New Issue. Not yet trading but recognized by Fidelity.com and Schwab.com. Not yet trade-able.
      Please see QuantumOnLine.com

      Issuer: relatively large cap oil/gas
      http://quantumonline.com/search.cfm?tickersymbol=XEC&sopt=symbol
      Via Schwab.com, MorningStar analyst gave it 4 Star. MStar gives BAD buy point. However, it is comforting to see them with the 4 Star.

      Juicy Convertible. It appears that the terms are reasonable IMHO.
      http://quantumonline.com/search.cfm?tickersymbol=CIMXP&sopt=symbol
      8.25% coupon. 62.5 Mil USD. So should be 2.5 million shares offered.

      Temporary Symbol: CIMXP

      1. TDA shows last price at $1295 per
        share on 115 share volume, so it is trading and is already out of my zone of interest.

        1. This is so lightly traded, I am going to put out a limit order for par for a few months and might get lucky.

  39. For “fans” of B. Riley:

    U.S. luxury department-store chain Barneys New York Inc has reached an agreement to sell its assets to brand developer Authentic Brands Group and investment bank B. Riley Financial Inc for $271 million in a “stalking horse” bid.

    If Authentic Brands closes the deal, it will open Barneys shops inside Saks stores.

      1. From RILY Investor Relations: “The stated bid [for Barney’s]is part of the normal course of our liquidation business, and will be decided upon in the next few weeks in line with the bankruptcy court process. When we are engaged on a liquidation, the process typically involves our purchase of assets and selling the inventory to recover our investment. This is usually a 12-16 week process.”

        1. 2WR, from what I have read before, they are very good at this part of their business. They love bankruptcies.

          1. Absolutely, Grid – Not only do they have the liquidator business which has done many of the name brand retail liquidations these past few years, but they also have the principal business that has done quite well buying up dying companies like MagicJack, NetZero, and Juno and somehow they make them winners for RILY without actually doing much of anything to revive the brands… Don’t know how they do it, but I admire what they’ve done… I like companies who look to participate where most others won’t even look and that certainly describe their purchases of Juno, NetZero and MagicJack. They’ve probably made the bid for Barney’s anticipating getting outbid and merely collecting the $8mil fee for being the stalking horse bidder if they are outbid, but because of their liquidating involvement and expertise, I suspect they’ve made a very comfortable bid given their expertise and jump start on the rest of the field. It sounds like a win win potential situation, but I sure wish I knew what their portion of the financial obligation of the $271 mil bid was… We don’t need yet another RILY baby bond or preferred right now…

        2. Given the slow moving train wreck in mall retailing, I’d expect B. Riley will be busy for quite a while. Throw in a recession over the next 24 months and you can see why RILY stock is up 60% on the year.

  40. Business Wire October 16, 2019 04:10:00 PM ET

    CHARLOTTE, N.C.–(BUSINESS WIRE)– Bank of America Corporation announced today that it will redeem all $1,000,000,000 principal amount outstanding of its 2.151% Senior Notes, due November 2020 (CUSIP No. 06051GGB9) (the “Notes”), on November 9, 2019, at a redemption price equal to 100% of the principal amount of the Notes, plus accrued and unpaid interest to but excluding the redemption date of November 9, 2019. Since November 9, 2019 is not a business day, the redemption price will be paid on the next succeeding business day, November 12, 2019. Interest on the Notes will cease to accrue on the redemption date.

    1. Bought some, not thrilled with it but the price is good.
      Recent IPOs all trading slightly below par. Does that indicate the rate drops are over? wishful thinking.

  41. All the GLOP preferreds are still undervalued in my opinion. With shipping rates on fire I expected some traction and prices at least going to par.

  42. FYI: GLADL opened up for general trading today, and started climbing right out of the gate. It’s now about 25.23.

    1. Who’d a thunk’d it – GLADL was available at Fidelity all day but not TDA…. It’s normally the other way around in my experience.

  43. FWIW, I don’t see anyone having mentioned it here so I can confirm that Fido is now executing free trades, including call-ins for those tickers they won’t let us buy and sell by ourselves online. I imagine 10s of thousands of old codgers from sea to shining sea going, “oh, yeah!”

  44. International Seaways, Inc. INSW, +4.26% (the “Company” or “INSW”), one of the largest tanker companies worldwide providing energy transportation services for crude oil and petroleum products in International Flag markets, announced today that the Company has sold its 49.9% ownership interest in its joint venture with Qatar Gas Transport Company Ltd. (Nakilat), which owns four liquefied natural gas (“LNG”) carriers to Nakilat for $123 million in cash.
    https://www.marketwatch.com/press-release/international-seaways-announces-sale-of-ownership-interest-in-lng-joint-venture-2019-10-07

    For the smart folks holding the 8.5% Senior Note INSW-A, this large cash infusion could mean a June 2020 redemption is more likely than not.

  45. Due to the current low interest rate environment, I’m currently looking for options to invest any spare cash as there are almost no values in the fixed income sector now. When reading an article in Barron’s this weekend, I came across and investment from Duke Energy called Premier Notes. It is similar to the U-Haul Investors Club as you are investing in short-term notes with Duke. Minimum of $1,000 to invest, but once the account is set up you can actually write checks against the account. Rates are at 2.20% for investments under $10k and 2.40% for balances over $50k. Not great, but a possible investment idea as rates will continue to be low for quite some time. Below is a link and it provides some additional information.

    https://www.duke-energy.com/our-company/investors/individual-investors/premiernotes-investment

    1. Just to add to my last post, Dominion Energy has a similar program called Dominion Energy Reliability Investment. In fact, it is almost identical but Dominion Energy has a lower credit rating than Duke. Rates are 2.45% for investments under $10k and 2.55% for investments up to $50k. Also, it appears you can write checks out of this account as well. Link to the idea is listed below.

      https://investors.dominionenergy.com/fixed-income/dominion-energy-reliability-investment/default.aspx

      1. Vg–yes ex today. I will wait a few days and see what it does–I am already in it for a full position.

        1. WFC-T would give you the added benefit of QDI on top of dual IG ratings, plus, you’d get your next divvy a month earlier – AND – a higher divvy payment to boot.

          1. A4I, yes, but call risk puts me off WFC-T @25.40 whereas there was none with WRB-B @24.97. I usually get burned when buying a callable much over par. :-/

              1. Tempting that STT-E SteveA. By the looks of the chart there seems to be high expectation of a call on 12/15 though, resulting in not much net gain. But that’s possible for any callable I guess. In my ignorance I’m more comfortable with WRB-B.

  46. From Bloomberg, appears Fido has eliminated the commissions but raised the bar:

    Fidelity Investments is crashing the free-trading party, challenging rivals in a gambit to lure assets by ending commissions.
    The firm will offer not only zero commissions for online buying and selling of U.S. stocks, exchange-traded funds and options, but also provide higher yields for cash balances and better trade execution, according to an announcement Thursday.

    1. Good news from Fidelity and kudos to them for emphasizing the better yield on their sweep accounts…maybe this will spark a race from other brokerages to raise their own sweep yields.

    2. I use FIDO for all my a/c.. I really dont trade much so no biggie to me.. I do appreciate the higher sweep cash payments.. these have fallen a lot as you all know but it is something.. nickels and dimes do add up.. so much for the “incentives” to move your accounts for “free” trades.. I wonder what they will come up with to counter that loss???

    3. But I suppose FIDO will continue their nanny state that makes if difficult to buy many issues of interest to III without having to call in if at all…. I find I’ve been moving money out of Fidelity to TDA just to be able to more easily buy issues I want to buy these days.

      1. 2WR, Ditto.
        I’m setting up a watch list in TDAM, but i’m not happy with my progress so far.
        I sold a stock today in FIDO and checked if it was free.
        They only charged me .08 cents fee. 20 days ago they had charged me the 4.95 comm plus a .06 fee.
        2 cents more is a bargain.

    4. It’s really a non issue for me. I solely use Fidelity as they provide great service for me. I am glad they are still touting that they will offer the higher rates on sweep accounts and better executions. Those to me are far more important than saving a few bucks on commissions. But if they can eliminate commissions while still providing better executions and higher interest rates on sweep accounts, great

      1. And just made two small trades at Fidelity and it appears based on those two nothing has changed in terms of executions. I received price improvements both times similar to before. Obviously it is just 2 trades but is good to see

  47. Reposting again…not sure the other one went thru

    Business Wire October 09, 2019 03:45:00 PM ET

    CHICAGO–(BUSINESS WIRE)– OFS Capital Corporation (the “Company”) (Nasdaq: OFS) announced today that it has priced a registered public offering of $50,000,000 aggregate principal amount of its 5.95% notes due 2026 (the “Notes”) which will result in net proceeds to the Company of approximately $48,137,500 (or approximately $55,403,125 if the underwriters fully exercise the overallotment option described below) based on a public offering price of 100% of the aggregate principal amount of the Notes, after deducting payment of underwriting discounts and commissions and estimated offering expenses payable by the Company.

    The Notes will mature on October 31, 2026 and may be redeemed in whole or in part at any time, or from time to time, at the Company’s option on or after October 31, 2021. The Notes will bear interest at a rate of 5.95% per year, payable quarterly on January 31, April 30, July 31 and October 31 of each year, beginning on January 31, 2020. The Notes have received a private rating of “BBB+”* from Egan-Jones Ratings Company. The Company has also granted the underwriters a 30-day option to purchase an additional $7,500,000 aggregate principal amount of Notes to cover overallotments, if any.

    The offering is subject to customary closing conditions and is expected to close on October 15, 2019. The Company has submitted an application for the Notes to be listed and trade on The Nasdaq Global Select Market under the trading symbol “OFSSI”. If approved for listing, the Company expects the Notes to begin trading within 30 days from the original issue date.

    The Company intends to use the net proceeds of the offering to fund investments in debt and equity securities in accordance with its investment objective and for other general corporate purposes. The Company also intends to use a portion of the net proceeds from the offering to repay outstanding indebtedness under its revolving credit facility. As of October 7, 2019, the Company had $45.8 million of indebtedness outstanding under the credit facility.

  48. At the risk of being nit-picky, I would agree in defining ETDs as either “baby bonds” or “notes”, but not “subordinated notes.”

    Many ETDs are indeed subordinated (too many) but not all. Some are pari passu with other debt and a few are senior.

    That said, yeah, many companies view baby bonds as a dumping ground for their lowest ranked debt. Institutions won’t buy them so they sell to retail.

    1. Bob, I would suggest too many people buying baby bonds have no understanding in distinction in cap stack to the various types that are issued.

      1. That’s why the post 🙂

        The starting place for investing in corporate securities should be a Corporate Finance 101 text.

        1. But they dont even understand the significance of the terms…subordinate, senior secured, senior unsecured, pari passu, cap stack, bank secure, debtor in possession, etc. and how they all interrelate with each other. The terms without context and understanding are meaningless.
          This really should be understood at a remedial level before anyone buys these things to better understand what they are.

          1. Debtor in possession? I’ll bet they know that term, … They see it after their investment has fallen off a cliff in value…

            1. Gary, Under “Additional Links” at top right of any page, click on “Sandbox”. The trick once there is to scroll all the way to the bottom to see the “Leave a Reply” section.

      1. I think if you go through the list of $25 notes (baby bonds) you will find most of them are parri passu with other unsecured debt. In other words, neither senior nor subordinated.

        1. Bob-in-DE – I think there are some utility 1st mortgage issues floating around–from Entergy.

  49. Tim,
    Please help me understand the premise / criterion behind your III Ratings – A/B/C/D . Thanks
    Also, is there a list of all the positions you cover and their Rating ?
    Thanks
    Gary

    1. Gary, you may want to click on the Security Finder at top of this page. Leaving the search options blank should provide a complete list. The “Preferred” tab is also very useful as there are multiple useful lists.
      I encourage all to navigate and become familiar with this site as there is more to it than just Tim’s posts and visitors’ comments.
      In fact, a recent post by someone else asked about the meaning of ETD and it could be found (inferred) in the Definitions listed under “Educational Items.”

    2. Hi Gary—that III rating is relative to dividend safety only–if you hover over it there is a note to that effect–I think it is confusing so I think I am going to eliminate it.

      There is no specific list with ratings–and since I am going to remove it I guess there won’t be. I don’t want folks to be mislead by anything.

      1. Tim, the rating is useful and understood exactly as you expressed (and nothing more). Not confusing at all IMO. Nice to have. Thank you

          1. Tim, it’s unclear to me what the safety of the dividend refers to – safety of the common dividend? the odds of the preferred continuing to pay dividends? something else? How about (if feasible) defining that term in the box that appears when one hovers over the rating?
            Thanks, Tim.

            mbg

  50. Thanks Wedgehead.
    Just picked up small position thru Vanguard at 24.80
    Had to be persistent..it rejected first attempt.

  51. Any news on the OTC ticker for the new PRIF-E issue ?
    Also – where is this information published ?
    Thanks

      1. Tim-

        You may have possibly covered this at some point, but I was curious how you or others find the new issue preferreds ? I have E-Trade and I don’t see them under stock IPOs. I can find common and bonds easily, but preferreds have always been hard to find info. It does not seem like all brokers let customers participate in new preferred offerings.

        1. Alex – new preferred offerings are not handled like common ones. You won’t find them at brokers where you may be able to get an allocation at what they price at. Rather, if you want to get in early, you need to buy the new preferred offering on the grey market using the temporary ticker. And the price will be what the market will bear

          Basically – with common stock IPOs brokers are allocated so many shares and you can apply for an allocation and if successful, you pay the offering price

          With preferred IPOs, the underwriters place them directly, selling to institutional holders or to retail holders on the grey market

          1. Hey Mike I had a question, for OTC Finra, do you also see baby bonds here too, or just preferreds before they debut ?

            1. Alex, since the FINRA link is an OTC listing of new issues and since baby bonds don’t trade OTC, no you wouldn’t find them there. I’ll let the more experienced members share their source for new BB news.

            2. Alex–you will have to call your broker and get the ‘bond desk’ and then you may be able to buy using the CUSIP. Otherwise you will need to wait for exchange trading.

        2. some of us also have RSS feeds setup to troll the investor alerts/filings pages of various companies, so as soon as the news hits the wires, we usually get an alert and can quickly see who gets to the “Reader Initiated Alerts” page first…it’s almost like a game to see who can run and tattle first to goose Tim into writing up an alert to everyone… lol

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