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  1. At the risk of stoking the ire of Tim, I wanted to post a comment about 2 Canadian preferreds I came across (from Joel A.’s links) which appear to offer a decent yield with what I perceive to be reasonable risk. Anyone else dig into the following Canadian preferred securities?

    Bombardier – The plane/other industry manufacturer. Their website has great detailed summaries/explanations of the preferreds. They have 3 preferreds, the ones I liked are:
    BBDRF (Series 2, TSX symbol BBD.PR.B) – pays out at 80% of the CA Prime rate, capped at CAD$1.00. Par = CAD$25. Last traded on TSX @ 11.07, yielding 8.8% (note: exact formula is complex, above is condensed-currently pays 100% of CA Prime since it trades < $25)
    BDRXF (Series 4, TSX BBD.PR.C) – flat CAD$1.5625 dividend. Currently yields about 8%.

    Dundee Corp – A somewhat diversified company, a little like Steel Partners (SPLP). They are primarily an asset manager, have marketable securities, mining interests, agriculture/real estate, etc. Not the greatest income statement, but there are assets to back it up, and they recently announced calling in one of the preferreds, so they are looking at their cost structure. Par value is $25, so if any of these were called, it would be a huge capital gain.
    Series 2 DC.DPR.B – 5yr CA Bond + 4.10% – currently yielding 11.3%
    Series 3 DC.PR.D – 3mo CA Bond + 4.10% – currently yielding 11.5%
    No US quotes on TD Ameritrade for Dundee, but they could probably create symbols for them like they did for me on Enbridge's Series 1 preferred.

    1. I am gratified to see a verification that there may be a larger universe of opps opening up. I have been learning the language so to say of these CNs and am still stumbling forward. My style is to show a possible method to fish and talk about it when I at least have a position or…a fish. I will follow through on your extension of the research as well! Security in finances seems to be at a very imp. turning point right now in general with credit, interest and equity bubbling, and also because of age for me. Happy Research! JA

      1. Curious if the foreign transaction broker fee is being charged to those of you purchasing Canadian Preferred’s (any issue symbol ending in F). $50 at Fidelity. TD ?

  2. Last half hour on Fri:
    Here’s two monthlies which have paid for 13+ years and are as close to a deep value as I have seen in this market for an innovative income security! :
    Added to FRHLF a royalty company worth understanding, 7.7% annual.
    Opened IPPLF solid CN worth understanding too, 8.49% annual.
    Good Weekend to all! J

  3. I was able to buy a Canadian reset preferred OTC today that have never traded before but ticker was assigned. No problem. One doesnt need volume to get TSX price if liquid on TSX.

      1. Joel, out of stubbornness, lack of brain power, distrust, lack of interest (take your pick on any or all of the above, lol) I only have less than 10 I am seriously interested in buying. I just am not going to buy any Canadian reset unless its a utility one or Enbridge…. Now admittedly I do watch TCANF, but dont really want a piper outside of Enbridge. But if it dropped another buck, its hideous 1.5% ish kicker would get interesting at a lower price point.

      1. Bob, take a shot and guess what it is……Im just getting off golf course, so I will reply when I get home.

          1. Bob, close is not the word….Spot on Bingo you are! Its the Series Y issue. This is not a purchase that I am looking for a flip as it may stay down a while. Just getting balance. I can wait this out and hold indefinitely. Its just a ute that is grade A in quality. 47 consecutive years of common stock divi increases and their preferreds are higher investment grade I have considerably more of their fixed floor reset issue. I just funded my taxable TD account (have TD in an HSA brokerage also) and wanted to give it a spin with an issue I have wanted but could not buy thanks to the new Vanguard lock out on Canadian resets.

              1. Bob, there reasons for justifying it would have been ok, except for one reason…They are 100% inaccurate. Actually had a pretty smart guy on the phone a level above the phone reps. He made a mistake thinking he knew more than I did. I quickly had him on his heels.
                Well at first I didnt, he proceeded to cover up lies with more lies except he finally gave up when I corrected him and let him knew I wasnt falling for the crap. Would have respected him more if he just admitted I was right and then through the suites upstairs under the bus…But he sucked it up and took the tire tracks for the team.
                I dont mind legitimate reasons to block them, but not fantasy inaccurate reasons.

          2. Bob, I forgot to ask, how you knew. I know you know I am a ute preferred nut, but you still would have had to have it on your tracking list to determine what issue it was.

            1. I have ties to Canada and have been invested in the resets for some time. I follow all that have US tickers, or at least the ones I know about. 31 or 32 I believe but about half of those from just 3 issuers.

              I have to file FBAR but no way do I want to file a Canadian tax return so I don’t buy directly on the TSX.

              Readers should also know that there are many “interlisted” Canadian companies (=Cdn companies with actual, registered, shares traded on US exchanges. No “F” at the end.) Many would be of interest to income oriented investors.

              PS – if anyone out there wants to put in the effort I can name a few more resets I’d like to see with US tickers.

              1. Bob, I and probably many others here would be interested in a few of the ‘interlisted’ Cdn companies you think might ‘be of interest to income-oriented investors.’ That is, if you’d care to name them…


                1. BAM, BCE, BBU, BIP, BPY, BEP, CCJ, CM, CNI, FNV, SU, TRP, TD, TU, RY, FTD, ENB.

                  Should get you started.

                  1. Bob, forgot to add my CNAUF is just an entry position. I hope for it to return even closer to its 52 week low. For every 75 cent drop off or so on TSX, I will add 500. Would love to get to 2000 shares if it drops enough. But…No more drop, no more buy…

                    1. Most everything on my wish list is much close to 52-week highs than lows, so very little buying for me.

                      But there are many potential catalysts for a down market so I wait.

                    2. CNAUF is 25% off its 52 week high. But for me this is largely irrelevant in terms of pricing. It will go lower if expectations of 5 yr CAD are going lower also. And that quite possibly could happen. The base pricing would appear to be summer of 2016 when 5 yr sagged to well under 1%. This in turn caused the Series L to bottom out around $15 during that time period. Current pricing is $2.80 above that, but correspondingly the present 5 yr is still considerably higher than that time period also.

              2. Bob, all you have to do is sick Amy on it. If she could personally create EBGEF she can get another ticker assigned for you, I am sure!
                I have looked at the world of Canadian preferreds and due to my shallow small world investing traits the only ones I track or own are the 3 Enbridge preferreds that are US Tbill based, the Altagas issues (currently out but watch), ERRAF, Fortis, and the 2 Canadian Utilities issues. I keep my eye on TCANF also. If any of those utes leak an OTC issue on I would follow. But I dont have any desire or energy to look at any other issues. This is enough to keep me busy, lol.

                1. “Bob, all you have to do is sick Amy on it. If she could personally create EBGEF she can get another ticker assigned for you, I am sure!”

                  Ha! With all of the new Canadian tickers you turned me on to, I already feel like I should be putting on Vanna White’s dress. Too many letters for this aging brain to keep track of!

                  Then add in OTC vs TSX…..USD vs CA dollars……currency conversion….reset timing…..kickers…….and the hard drive between my ears is maxed.

                  But, all that said, I’d badger Schwab again if another situation like EBGEF presents itself. It really wasn’t too bad – just a few phone calls. It was well worth it.

                  1. Amy – we are vacationing in the Cereal State but when I get home I will comb the list.


  4. That new Ford pref is real, even if it isn’t actually trading yet:

    Cusip 345370845
    Coupon 6.2%
    S/P Rating BBB
    Matures 2059
    Callable 6/1/2024

    FYI I now do most of my own trading thru Vang (thanks hugely to Tim and this community) where there is no sign of these yet, but still have a small acct at RBC who seem to have been given the first nibble here. Was also same sceario with those DUK-A prefs recently

    1. What does RBC charge you in brokerage fees for your preferred purchases? I bet it ain’t cheap. I trade some particular things with them for free, but when I asked about preferred stocks if was something outrageous to trade them.

      1. Scott, the crazy thing is RBC don’t charge anything for new issues like this when they are the bookrunners. A whole world of hurt if you want to actively trade anything else though..$95 a trade! Plus their ludicrous bond pricing. …
        Royaly Banking (on you) of Canada.
        Moved everything else over to VAN, and wil now just do these new issues a par value with RBC. They will only get this sort of access to about 25% of these new issues at most though.

        1. Adrian, all actual IPO’s have commission built in for the selling broker IF you are buying them from the underwriter(s) or the selling group. If you read the IPO prospectus it is specifically spelled out the fees that are built in and are getting paid by the issuer.
          Gold has intrinsic value. The problem with the dollar is it has no intrinsic value. And if the Federal Reserve is going to spend trillions of them to buy up all these bad mortgages and all other kinds of bad debt, the dollar is going to lose all of its value. Gold will store its value, and you’ll always be able to buy more food with your gold. — Peter Schiff
          Have a great weekend, Nomad

          1. I wonder if Peter Schiff will actually be able to buy a can of beans with his littlest bar of gold if the ship actually goes down.

            1. camroc, thank you for sharing with all of us your insightful comment and empathy. One of my old clients that I am still in touch with are/were based in Venezuela; they have seen severe economic tragedy and their fiat currency has sadly become basically worthless. My friend/client worked for Texaco at one time and then Exxon as a chemical engineer and has stayed in the country because he has elderly parents with no one to take care of them in these horrible times there. He has been trading his silver (maybe gold too but he’s only mentioned silver that we bought for him) for “items” to sustain his family and I can only pray that there are many others that are not starving because they have some gold and silver (or other items of value) to trade for goods and services they desperately need. I truly hope you can understand and are sensitive to the Venezuelan peoples abhorrent state of affairs…
              Because gold is honest money it is disliked by dishonest men.
              Be well my friend, Nomad

              1. I am not, per se, against gold, Nomad. I’ve owned it (and mining shares, too, but that’s another story, lol). Nor am I indifferent to those who suffer, wherever they may be.

                And I’m certainly glad that there is still some semblance of an exchange system in Venezuela to sustain your friends.

                My comment related to what may come later, the period when, for example, I am desperate and hungry and have a can of beans and you offer me gold for it. The choice for me then is simple. Perhaps, instead, if you have a can opener, we might share.

                On the other hand, you might bring forth a weapon. Either way, gold would mean nothing to me in such circumstances…

                Would that we can both be well.


        2. Thanks, I will check with my guy there and see what he says.

          That is the commission I remember too when I asked about a preferred that was already trading before. No commission up front would be good on the issues they are participating in but when you go to sell them you would get hit with the $95 on the back end. That’s about $0.24 ea. on 400 shares. Fido and Merrill charge me nothing.

          Best to buy them at RBC, transfer to new account, and then hold or sell them I guess. Or just keep sock drawer issues with RBC that you intend to hold forever.

        3. The Canadian banks are truly fee crazed and that is why they make so much money. It’s a much less competitive landscape that you see in the U.S. I would rather own the stock than bank with them.

          Any particular reason you would trade with RBC?

    2. On the phone with Schwab, again, trying to get a symbol in their system and thereby place an order . . .
      So, they say it won’t be listed for public trading until Tuesday 28th or shortly after.

    3. Awesome. Thanks for Cusip number. Fidelity has it, if you lookup by that number. No symbol yet. This is a great coupon rate for BBB rated.

      1. Imagine the price will rocket out of the gate when it finally becomes available to trade. Any ideas what the ideal limit order price might be?

    4. It’s a note, not a preferred. Notes rarely trade grey market so have to wait until it’s listed.

        1. Baby bond is correct. Bond, note, same thing. It’s debt. The “PFD” on the end of the Fido description is incorrect. Just don’t want to see folks buy this thinking they are getting a qualified dividend because they’re not.

          The FWP is readily available on It’s good practice to check with authoritative sources before buying.

          1. I think I see a regular Ford bond trading with a shorter maturity trading at a 6.2 yield: 345370BV1 FORD MOTOR COMPANY N/C, 8.90%, due 01/15/2032 BBB 8.90000
            Obviously, with an 8.9% coupon, it’s trading at a premium.

    5. Also, appreciate this is NOT QID, it’s ordinary income. Don’t compare it to BBB rated preferred.

      1. Hi Rod, Vang: Vanguard, TDAM: Ameritrade, FIDO: Fidelity.

        The trick on a lot of these new issues is finding them. Vanguard and Merrill (Edge) have recently been at sourcing new issues than the other major firms.

        Also some have nuances such as Fidelity requires a phone conversation to place an order for a fix to float issue which is silly as many of them are safer than the underlying common stocks.

  5. HOUSTON, TX / ACCESSWIRE / May 22, 2019 / Spark Energy, Inc. (SPKE) (“Spark” or the “Company”) (NASDAQ: SPKE), today announced the commencement of a 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”). The Company may make purchases of Preferred Stock under the Repurchase Program, if any, from the commencement of the program on May 20, 2019 through May 20, 2020, and there is no dollar limit on the amount of Preferred Stock that may be purchased. The Company may make purchases, from time to time, at prevailing prices in open market transactions or in negotiated purchases, subject to market conditions, share prices and other considerations. The Repurchase Program does not obligate the Company to make any repurchases and may be suspended for periods or discontinued at any time. The Company intends to fund the Repurchase Program through available cash balances as well as future operating cash flows.
    “We achieved a strong first quarter to start 2019 and believe this is a good opportunity, given the current trading price of the Preferred Stock being under par value,” said Nathan Kroeker, Spark’s President and Chief Executive Officer. “We have strengthening liquidity and this program will allow us to retire Preferred Stock that has a significantly higher cost of capital than other sources available to us.”

    1. So let me see if I understand this. i find this a little frightening unless o don’t understand.

      Instead of calling in the $25 preferred, they will buy it back for lots less and destroy those preferred shares. What stops them and other preferred way under water from doing this. It undermines the whole concept. Next big pullback what stops the 5% coupon power companies from doing this?

      1. Steve, I doubt would pay $25 for a 5.7% yield if they can buy a 6.875% for $25, and that’s my concern. The 5.7% becomes worth under $21 if it happens. You get divvy along the way so it’s not quite a goose egg but it’s close. It’s still a $25 issue but only worth $20+. The issuer wouldn’t call it because it’s cheap money (unless mandatory).

        1. I understand you’re reply to Steve. The difference in thinking is one of annuitant vs trader. You’re concerned with the total capital value preservation . I’m more concerned about the certainty of future cash flows. Not saying that my thinking is right and yours is wrong. We’re both right. We just have different objectives.

          1. Retired, I agree with you 100% that everyone has different viewpoints and objectives. Not right and wrong, but simply different. I am not a buyer of annuities. Closest thing was buying royalties on wasting assets. I made some good money there but it was from trading them, lol.

      2. Steve, its nothing to be afraid of because its not the company causing the depressed price but the markets viewpoint of the issue. Spark is trying to strengthen company by taking advantage of situation. Owners do not have to tender.
        By the way, utilities have in the past offered buyouts of their preferreds in the past when market conditions presented themselves. Take for example one I own…IPWLO an old 4.2% 1940s issued preferred. In the much higher rate era of 1990s Indianapolis Power&Light offered buyouts to all their series of preferreds (they still trade today). IPWLO was offered a $77ish buyout price. About 20,000 shares of the 40,000 share float accepted the offer. The remaining ones still trade today.
        Utilites have offered tenders will above par and well below par. Depending on interest rates of that time compared to coupon yield of preferred and actual terms and redemption price of the preferred.
        The only reason to be worried of such an offer is if it has deliberately been beaten down first by manipulation or dividend suspension.

        1. You are no doubt correct and as I thought this out, I agree with you. You are actually helping stabilize or even strength the market price of the preferred.

          However, with that said, preferred stock or baby bonds is neither stock nor bond. It’s is a unique financial instrument. It’s value is $25. That is the deal the company struck when they went to market. That is not the deal for common stock. Buying back preferred stock at less than $25 by the company that issued it and destroying those shares is circumventing the original terms the company entered into. I don’t like it. A deal is a deal. A company that circumvents their deals is not be trusted. It may be legal but I don’t think it is the right thing to do. You want the preferred back, do a partial call of the offering. End of rant !!!

          1. Interesting discussion. I don’t own this issue, but own lots of other preferreds trading below par. Once I have my position, I want there to be demand for the security and buyers in the market. It doesn’t matter to me whether I sell to my next door neighbor or the company. And if I’m holding, I think my preferred is safer and higher quality if other preferreds are retired and the company balance sheet improves. On balance, I think I welcome it.

            The one place where I would object is if the issuer sees evidence that the company is turning around and performing better, but hasn’t yet disclosed updated financials to the public. In that case, it would seem to be no different than insider trading, where the company knows the preferred is safer, but other investors don’t.

          2. Steve – this is actually, IMHO, a good buying opportunity. Why? The company has financials that are improving. They have some cash. They want to use the cash to redeem these preferreds early (the call is in 2022). They had to issue the preferreds at a high interest rate. So the only way they can do this is to buy in the open market. Plus since the stock is under $25, the company saves on the redemption amount as well. But now I know the company is very confident. So I can buy at $24.50ish with pretty good confidence about the safety of the dividend. And if they call in 2022, so what? I get 8.75% for 2-3 years plus a .50 cent capital gain. I am good with this.

        2. Gridbird and others: Has there been some handicapping of a Kemper subdebt redemption that I missed, or does the 25.70 price paid several times today reflect a willingness to roll the dice on what I estimate (correct, please, if wrong) would be at best a $.60 loss if the redemption notice went out tomorrow?


          1. Ben, KMPA is puzzling for sure. I wrung my hands and tried to figure the odds of a call when I decided to buy a few weeks ago, but at $25.24. I wouldn’t touch it at these prices.

            1. I purchase 400 at 25.27 last week. I figured if they called it I’m out a Benjamin. The yield was too good to pass up if they don’t call it. Every day that goes by makes me look smarter or lucky. More likely lucky. I’m too old to get smarter. If they don’t call it soon I can’t lose.

    1. Right. If you are into very high quality with painfully low yields, they are flooding to market.

      Would have to cut out the Dundee cake if I bought those.

    2. A4I, if it had been 5.75% QDI or above IG, I would have sold something and been on it like a fly to a barn…If one could get within ear shout of par. Every QDI has jumped out of gate despite low yields. Im not a personal fan of low yielding notes for tax reasons. Though I did jump in the latest Algonquin as momentum play….
      Spire preferred keeps climbing towards $26. I jumped back in niceley on NI-B earlier this week at 26.58, which essentially was 26.18 due to its exD this week. Im really quite happy in hunker down mode. Drained another 20k on CNIGO to satisfy the term dated bucket a bit. Im about in hunker down mode comfortable with what I own for near term. But if a 5.75% IG ute comes to market I will play the game somehow.

      1. I hear ya… I was just on the hunt for any ute type offerings that may of been interesting. I’ve seen you picking up some of the lower yielding plays as of late and was just posting to see if any of these were in your lane in case you didn’t see them. Good luck my friend…

    3. We are in a Catch 22 from historical perspective. The recent ag bank is 5.7%. I bought a 6.875% ag bank about 5 years ago that has about 5 years left till call. If interest goes back to 6.875% in the remaining 5 years then that 5.7% will yield a goose egg destroying capital. I have picked up some recent IG but under no illusions they are the “safe bet”. History indicates otherwise, unless “this time it’s different”. I hedge about 20% of capital against rising rates.

      1. I politely tend to disagree. If you’re retired you tend to gravitate to issues that are safer and you have to take what the market gives you. There are no other viable choices without a crystal ball. Safety of the payout is the most important consideration.

        The cash flow generated by these lower yielding IG issues supports my needs to supplement social security. If rates rise, I may well suffer some capital destruction but the income continues to roll in. If I don’t use all the income for living expenses I can always plow the excess back into newer, higher yielding issues that come to market. I expect that to be the case as I calculate I will only need about half the income the current portfolio generates. I see the current portfolio akin to purchasing a fixed annuity with an inflation adjustment. If rates rise, some of my income will purchase that inflation buffer.

        Life is full of options but you have too play with options you know, not the ones that may or may not show up later.

        1. Retired and P, I agree with you both! But there is no inevitability to any direction so you take your chances. For every groan of a new 5.5% to 5.75% issuance to market I can show you a 3.5%- 3.75% par perpetual preferred still trading today from yesteryear….Just like yields can go higher, they can go a helluva lot lower too.

          1. Grid, I agree with both you and Retired. I have no idea where interest is going either and I stay fully invested for that reason. Just saying I’m not happy to go overweight on a bunch of low yielding perpetuals as money comes in. I hedge with 9mo-18mo IG bonds and may up that a bit more. I can still find 3%-3.5%, even a lucky buy on some 1yr CNO this week at 3.8%. It’s a couple percent less than IG BB but it’s all the capital coming back relatively short term. I would like to have my cake and eat it too.

            1. I dont blame you P. Sounds like a very good strategy…..Over the past few years I have gotten a bit more sanguine on capital preservation and lean towards safe producing income. But its just a personal choice of what I want to do. My pension is what I live on and its really all that matters for me lifestyle wise.

              1. Yes. Having a pension with a COLA while living debt-free out in flyover country gives you some leeway to reinvest and hold safe income securities without thinking too much about interest rates or capital preservation. Then the main worries become healthcare costs and personal safety from, e.g., a tornado. Speaking of which, I do hope you’re safe out there in big MO…

                1. Camroc, that hit about a 2 hour drive away from me. I have lived here my entire life of 55 years and have never come close to seeing one. Odds are better than your worry about Santa Anna coming back over the border and taking back their land from you. But overall pretty small odds. Hope I didnt jinx myself!
                  Healthcare insurance totally sucks, but Im healthy. My ace in the hole is moving GF in with me and getting on her plan. $175 a month with $200 yearly deductible which includes vision and dental. That is better than Medicare! 🙂

          2. I guess that’s my point. I don’t know the future. I once asked an ouija board to predict my financial future and it spelled out “LOL”. The Palm reader didn’t do it for me either. Tarot cards anyone…

            1. Retired, If focusing on income you’re strategy of rolling with whatever the market is yielding makes a lot of sense as long you have capital to re-invest. Under that scenario you’ll always be averaging toward the current market and the probability is that your nominal income will continue to rise. Sure beats hanging out in 2% waiting for an opportunity that may not present itself.

              The fly in the ointment I think for all of us is inflation. That insidious force inexorably dilutes our capital and income.

  6. Eagle Point Credit Company Inc. Announces First Quarter 2019 Financial Results and Partial Redemption of Series A Term Preferred Stock Due 2022
    …The Company will redeem 909,000 shares of its 7.75% Series A Term Preferred Stock due 2022 (“Series A Term Preferred Stock”) on June 28, 2019 (the “Redemption Date”). The redemption price per share of Series A Term Preferred Stock will be $25 plus an amount equal to all unpaid dividends and distributions on such shares accumulated to (but excluding) the Redemption Date (the “Redemption Price”). Because the Company has declared dividends and distributions on the Series A Term Preferred Stock payable on each of May 31, 2019 and June 28, 2019, no such amounts will be unpaid as of the Redemption Date and, as such, the Redemption Price shall equal $25 per share of Series A Term Preferred Stock. It should be noted that, since the Redemption Date occurs after the June 12, 2019 record date applicable to the June 28, 2019 dividend payment date, the dividend payable on June 28, 2019 in respect of the redeemed shares is payable to the holders of record of such shares at the close of business on June 12, 2019 record date, and is not payable as part of the Redemption Price…

    1. I wonder why BDCs seem to so frequently only make partial calls on outstanding baby bonds instead of calling the entire issue? I can think of at least 3 other issuers who have done the same thing..

    2. How do these partial redemptions typically work? Are they FIFO or what?

      I’m long ECCA.

      1. A4I, my few experiences have been pro rata…But according to its propsectus, they have options…
        A Term Preferred Stock to be redeemed will be selected either (1) pro rata among Series A Term Preferred Stock, (2) by lot or (3) in such other manner as our board of directors may determine to be fair and equitable. If fewer than all shares of Series A Term Preferred Stock held by any holder are to be redeemed, the Notice of Redemption mailed to such holder will also specify the number of shares of Series A Term Preferred Stock to be redeemed from such holder or the method of determining such number.

        1. I have a few hundred shares of the A – I’ll post here as to what happens. Was going to switch to B but was too pricey for me. If it goes, it goes. C’est la vie.

          1. Thanks Grid and Tim. Seems like FIFO would be a fair way to do it but I’m sure fair isn’t what they are interested in if there are ways to redeem and skim a few points off the top somehow. Holding my A series for now. Agreed, the B is in nosebleed territory.

        2. When interest rates stopped going up i started to rebalance my portfolio and i switched out ecca for eccb. i have been switching out a lot of callable preferreds for their less callable siblings.

          1. I’ve been looking at these and never pulled the trigger (thanks Tim). If I understand it right, if you buy now you’ll still get the June dividend (~0.161) so current offer is 25.16. If it gets close to that I will pick some up.

        3. I agree, Grid – With the call being 50% of outstanding best statistical assumption an ECCA holder can make is that they will have half their holdings called… The only time I can think of seeing an exception to pro-rata (or equivalent from the point of view of holder) was way back when when some term bonds were issued with sinking funds and back then occasionally sf requirements were done by bond number, not pro-rata, but that was very much the exception.

    3. Sold all ECC-A shares @ 25.36 this morning rather than collect another .16 cent monthly premium then redemption at par. Might consider getting back into ECC-A after the partial redemption date has passed, and I agree the ECC-B shares look pricey. Fabrib…thanks for the heads up!

  7. Of interest: Received a phone call yesterday from Farmer Mac responding to my inquiry from two weeks ago re new issue AGM-D (then FMTPP). Had been looking for the prospectus and asking how they could make the public offering without the SEC filing.

    The (quite amiable) rep indicated as they are federally chartered, they are exempt from filing a formal public prospectus with the SEC prior to issuance. He further indicated that at that time their “Certificate” was only available through Merrill Lynch who underwrote the offering, and that Farmer Mac was not allowed to provide the Certificate. It is available now here:

    1. Good research. I wasn’t aware of the exemption.

      FWP or no FWP I did step up biggly on this one. Like Ag banks. Own them all, including ones that that were never registered.

      1. Aren’t you worried about rising farm bankruptcies Bob? After all these are banks that lend to farmers. I’d be concerned about the rising age of farmers taking out the loans as well. The trade war with China is another head wind.

        1. I don’t “worry” but I do think. I don’t have particular concerns about farming going the way of the dodo. Unless, of course, they get unionized, then all bets are off.

          The ag banks have strong balance sheets and come with implicit government support. I have 2% of my investible assets in ag banks. Would buy more but they are hard to get at prices I’m willing to pay. I can accept the risk.

          1. Which is why I decided to grab 600 shares right away. Too hard to trade after they’ve been available for some time. I’ll stick them in the proverbial sock draw.

          2. Additionally the farms arent just to farmers per se. All sorts of rural lending going on with these banks also.

              1. Yes they also guarantee a USDA home loans for rural areas. 100% financing, though each loan requires a 1% upfront insurance fee, an annual insurance assessment of .35%, and loans have considerably stricter debt/income requirements than conventional loans and of course are backed by a hard asset.

                Farmer financing is also a bit of a lighting-rod. The lights would be dimming on Pennsylvania Ave before the backing for this charter ends. My sock drawer runneth over, though properly apportioned.

    1. Seems they are issuing bonds like clockwork. Are they issuing a new bond to cover the interest payments on the other bonds? Having an 8% preferred that they could have redeemed, but then issuing more. Gives me pause especially when they are in the finance industry and should have tight cost controls.

  8. I was out of the country and missed NRUC when a lot of you got in around $25.10’. It’s $25.38 now. My question: is it still a good buy at current levels? Thanks.

    1. Probably a great bet on steady payouts to maturity with no muss-fuss. If, and when, rates go up recall your reason for buying…the COUPON! Go to their site and read up on their function and long successful mission. I would describe this as a sock drawer issue.

  9. A friend at RBC tells me there is a new Ford preferred in the 6.125% range being offered to RBC customers at least as of this morning. Thats all I know. Wouldn’t know how to go about tracking it down, maybe someone on here does?

    1. I doubt it. No press release from Ford on their website. As a public company, I would think they would have to make it available to all investors at the same time.

      Will defer to those with more experience naturally

      1. You are right..doesn’t seem to be anything out there. However, I appear to have aquired 400 of them thru RBC this am! Maybe they are just “Built Ford Tough” and hard to get your hands on. Is it up for instituional buying only I wonder? Similar to some recent issues discussed here?

        1. If you broker has discretion to trade he can buy “wholesale”, before it goes to retail or even has a ticker.

          Otherwise it was magic.

  10. This is the best deal I have ever seen on United States Mint Silver Eagles
    This is NOT a recommendation, please do your OWN deep due diligence before investing and only invest money your are prepared to not lose sleep over.
    Gold is a treasure, and he who possesses it does all he wishes to in this world, and succeeds in helping souls into paradise. – Christopher Columbus
    Be Well, Nomad

    1. If it comes to the point where those are important to me, I’ll be sure to also have lots of bullets and freeze-dried food in my converted missile silo…

      1. camroc, if you could please give all of us the address of your “missile silo” just in case of a zombie apocalypse, after an EMO attack or meltdown of our US dollar. I hope you have plenty of room for all of us (my horde of bullion too), considering Tim’s site is growing each month…
        Wishing you safe passage, Nomad

          1. Camroc, my brother has an open one room bedroom leading up from stairs with a huge safe in it stuffed with guns and ammo to outfit an army. I worry at times he is relishing a bit too much the thought of this happening so he can “defend his fort”. 🙂

          2. Camroc, That was actually an interesting link, made more so by the second slide on the first bunker which evidenced every self-respecting doomsdayer’s essential must-have: a 1,000-bottle wine cellar. lol

            1. Alpha, someone–it may have been Chris Rock–said if ordinary people knew how the super rich really live, they’d kill us all…

    2. Thanks Nomad-
      Looks like a good deal and thanks for posting. IMHO, physical precious metals should be a definite part of a conservative portfolio which seeks to preserve assets in all types of future economic conditions. Again, this is just my opinion.

      1. I truly appreciate your thoughts and reply Pete. The vast majority of my assets are in real estate (commercial, land and residential), the world’s liquid financial equity/debt markets, art, private lending, “alternative collectibles” and I look at precious metals as just another way to diversify and get away from King Dollar. These investments are right for ME ONLY and are not to be taken as any recommendation in any way. Each of us has to do our OWN deep due diligence before committing our asset base to any form of potential risk.

        If I could share a story in my finance career. When I was managing client money, one of my first large clients was the father of one of my Law School classmates. The father was already wealthy from a large inheritance he received prior to being my client (the family were heirs to a mega pharma company that has a market cap of over $350+ billion). He was a very intelligent person/pharmacist and owned his own chain of pharmacies. After building a HUGE portfolio of equities and bonds with me over 23+ years, he called me one day and said he had just sold the chain to one of the large publicly traded pharmacy chains and was planning on retiring to travel the world in 3 to 4 months. Sadly, he contracted a viral infection and passed away 2 weeks later. His heirs arranged a meeting with me (I had met all of them numerous times) in the Texas area and I flew in with forms to have his large portfolio transfer to his 3 children, as the deceased had legally decided; we had made him up a FLP (Family Limited Partnership), life insurance to pay the estate taxes etc some years prior to his passing. All 3 children wanted NOTHING of any of his portfolio that we built for over 2+ decades and asked that I liquidate over 9 figures of assets as they didn’t want to keep ANYTHING!
        The point of the story is that investments that you and I dearly value, our heirs may not want to do anything with them, do not have the time/strength/sophistication or are not interested in spending hours thinking about what to do with the assets and the world markets. Enjoy each day and worry less about just what stuff you have any more about who you are and what legacy you will leave…
        Be well my friends, Nomad

        1. Great story from a regular poster that I grow to respect more each day. And that’s in a group of truly outstanding members of this forum.

        2. Great story Nomad. Read it twice. I will confess to having paused at the 9 figures contemplating the work involved building that portfolio.

        3. Great story Nomad. I am 58 and newly retired after 30 plus years owning a small construction business. This time was spent raising children with my beautiful wife while trying to make and save a buck or two after starting with next to nothing. My investments have always been in real estate and bank cd’s (after a bad experience with an investment manager). Now I am trying to develop an income portfolio with a portion of my cash while staying very conservative. This site and folks like you have jump started me by many years and have saved me a lot of mistakes. Thanks again. Also, by the way, my intention is to spend less time investing and more time with my family including two grandchildren (and another on the way). My faith and my family are the most important things in life to me and I know that time is precious and I want to spend my remaining years well.

        4. Nomad, thanks for sharing. I second diversification and investing on “land” that tends to go up in value, such as waterfront lots. At times some deals can be found on following website that lists many of the available waterfront properties:

          And thanks for your philosophical ending quotes; I enjoy them. My fav is “time flies over us but leaves it’s shadow behind”

  11. SLMNP….Sorry, but apparently I blew it after getting info tonight… An online friend pursued the put factor with LYB US investor relations and the put factor is not $1000 but a little over $800. There was a 30 day window last fall where owners were getting about $1000. That window was not mention in their annual SEC filings. It just mentioned 8973 shares were tendered for approximately $9 million. That was my cross reference to the other info I posted that had me assuming it was par they were being redeemed at.
    So now existing shareholders are only able to put back to original terms of the buy out price of $42 x 19.113 or $802.67. The price of SLMNP has basically traded over $1000 since acquisition announcement Feb 2018. Thus probably the reason for less than 7.5% of float tendering.
    So basically one is owning a Baa3 type with a relative market range ave QDI of 5.8% but the put carrying a lot less value at $802. Not the end of the world, but not as I thought it to be so I must apologize.
    As for me, its not really changing anything for time being. I need QDI, and like a diversifier outside of the normal QDI issued sectors. I will need to be more mindful of whiffs of rates rising and LYB credit ratings though.
    But it may others, so the reason to let you know.
    Humble pie is not nearly as tasty as other desserts…..

    1. That was my concern earlier in a previous post Grid. You have demonstrated personal integrity and veracity tonight and should be commended for having the honesty to post your comment. Rida would not have done that.
      No one is perfect. The filings are vague. This site is an open forum. I appreciate your openness and the openness of others on this site.
      All my pencils have well worn erasers.
      – Dave

    2. Grid, Well, technically that $1,000 put is still available, though apparently with a tad less duration. Thank you for all of your excellent commentary Grid.

    3. Grid – Is there any documentation to reference for any of this? Would love to be able to read the source material…. Kudos for your friend’s sleuthing and for you going public on the changed discovery……That really is a Bill Murray 5…. lol.

      1. 2WhiteRoses,
        I’m the one who did the “sleuthing”.
        Vanguard Brokerage read me the Bloomberg press releases from last fall that contains the information from LYB on SLMBP redemption price that Gridbird references above.
        Additionally – yesterday afternoon I spoke with LYB’s head of US Investors relations for 10 minutes and he confirmed and reiterated that the redemption price on the put is a little over $800.

        1. Thank you, Steve. I wasnt going to bring you in unless you wanted to be. You were a pit bull on this and thanks for correcting an error on my part.
          Guys, I still havent tracked it down, the difference in why those 8974 shares got the limited time tender, but I personally trust what Steve said and have full confidence in his info. If you look at the CNBC chart of SLMNP you will see a big spike in volume of about 15,000 at end of October which corresponds to what Steve found out about the tender ending. Oddly enough though the trading was being done around 1030-1035. Since first of Nov barely 10k shares have traded hands out of the 115,000 left in tradeable float from originally issued ~125,000.
          Like Dave mentioned above, the filings didn’t directly say $1000. But it always referenced the immediate sentence before the $1000 liquidation price. So I was trying to find that second cross reference to confirm. Digging deep into annual I came across the shares redeemed from tender offer and it matched up with cash received for par. So that was the confirmation I was looking for and found it…Unfortunately I shouldnt have found it as it mislead me to a wrong conclusion….. And then the fact only 7.5% even bothered to accept terms further emboldened me down my trail, because who would want to tender shares with $1000 put in ones pocket? So that reinforced my false logic trail I was on.
          Here is the August terms from SEC.
          At the effective time of the Merger (the “Effective Time”), each share of common stock, par value $1.00 per share, of Schulman (“Schulman Common Stock”) issued and outstanding immediately prior to the Effective Time (other than shares of Schulman Common Stock held (a) in the treasury of Schulman or by Schulman or any wholly owned subsidiary of Schulman, (b) by LYB, Merger Sub or any wholly owned subsidiary of LYB or (c) by any stockholder who is entitled to demand and properly demands appraisal of such shares pursuant to, and who complies in all respects with, Section 262 of the Delaware General Corporation Law), was canceled and automatically converted into the right to receive (i) $42.00 in cash (the “Per-Share Amount”), and (ii) one contractual contingent value right (the “CVR”), in each case, without interest and subject to any applicable withholding taxes.

          So after that one time tender expired it has reverted back to this filing.

          The CVR was related to Schulman being involved in a lawsuit against a company it acquired that fraudulently misrepresented itself. This continued on in litigation and a few months back in early 2019 were awarded from lawsuit $100 million. These acquisition/lawsuit was actually the genesis for Schulman looking for a suitor to strengthen them financially as they overpaid for what the company could actually do for them. Thus the immediate S&P credit upgrade of Schulman from B+ to match LYB of BBB+ in August 2018.
          Steve has found out that CVR monies were only for then existing owners. I never was concerned with that part, as I was only worried about linking their credit ratings strong LYB ratings and the $1000 put.
          A put is only as good as the company supporting it, so I had no interest in a put from a B+ credit outfit. It was like that when I was trading it pre LYB days. As I wasnt inclined to hold long term cyclical companies with that type of credit rating.
          So I found the credit rating I needed, the put and confirmation of put price, I just had to wait 5 to get any bought though it wasnt from lack of trying…Except I was wrong on the put value.
          Im more pissed I was delving out wrong info for people looking at that par $1000 put than I am over the issue itself. Im a bit over concentrated in the issue. Probably will scale back 10-20 shares after a few divies, but dont have any personal concerns for time being. As I mentioned before the 1020-35 has been its home when it trades for over a year now. But the pricing logically thinking is being supported now by the low yield environment and its companies investment rating than the put. So that changes the variables a bit from my personal thinking anyways.

          1. Don’t feel too bad, Grid. Everyone makes mistakes – overlooking something, misinterpreting something, or worse.

            We’re all grown up folks here, and knowing the risks we take whenever we buy a security. It was our decision, and no one coerced anyone to do so.

            The yield on SLMNP is still attractive, and the issue is technically uncallable, so it can be looked upon as a stable income stream, barring any company specific issues of course.

            I shall hang onto my 10 shares.

            1. Thanks Inspbudget… This market trading range for it has been supported long before my erroneous thinking so nothing has really changed. And like you said the uncallable feature is still a nice aspect if rates were to continue to sink. So like you, I will hold with no present concerns. But I appreciate Steve coming to the truth, instead of my version by looking in wrong direction to find confirmation of my “truth”.

              1. If this “discovery” has unnerved some holders, and they wish to sell, I don’t mind picking up a few more SLMNP shares at $$900, LOL.

                1. Well Im assuming the market knew the truth…But I didnt… :(….If it got to $900 Inspbudget that means I would be owning even more because I would buy before then, lol… Im a bit over exposed now, but Im willing to get on an intermediate basis even more exposed if it dropped down under par!
                  But there should be for now no basis for panic as it is a market performer.
                  Basically its credit rated just like new issue SIPRY. Currently its 5.75% and less if redeemed on call date and of course has no put floor. SLMNP is 5.8% with a floor 20% underpar, with no maturity date. So it has its plusses or minuses like the rest. It just has 20% less plusses than I thought it did unfortunately.

          2. Grid, many thanks for all your insights through the course of time. We appreciate that you take the time to share/post. You shared SNMLP info with good intentions for us (III visitors) to benefit. Even with the corrected put, IMO, SNMLP should be appealing in a diversified pfd portfolio. You have never forced the hand of any investor. Besides, each respective investor needs to do their own DDD – borrowing Nomad’s term: “deep due diligence.” THANK YOU for your generosity and sharing pfd insights.

            1. Thank you aarod (its hard for me to track posts if it isnt in the last 5). I hunted a little too hard and in the wrong woods on that put thing. But the issue should be just fine and its merits without any put has it as a good price on a relative market basis…Interestingly as a comparative you got a perpetual non callable from BAC-L with essentially same credit rating at 5.47% and SLMNP is 5.85% non callable. Its trading range has been 1020-1040 past 15 months since acquisition offer.
              I have played in deep illiquids for years now and never experienced the oddness of this one. Essentially didnt trade for 6 months (only 400 shares outside of two 1000 share blocks and a 100 share block all on same day Jan. 18. No ask price was ever shown during this time period (or really even during pre LYB days when I played it) And the minute after I force a trade from trading desk on phone it suddenly woke it up. Like someone found 2000 shares they were missing. Now there is constantly bid ask and a lot of volume…Very strange. ….

        2. Steve – Many thanks for sleuthing thru to a final answer…. When you think about it, this makes all the sense in the world. The reason why the put even exists now I suspect is because the original issue was a convertible. and the math is conversion of this issue at the price LYB paid for Schulman… So naturally, to keep the condition of the convertibility when Schulman stock no longer exists, they gave holders the ability to put at the original price times the original conversion factor. Hence the 802 and change.. What makes less sense was the window they opened temporarily at par. I sure do understand Grid (and the rest of us) jumping to the wishful thinking conclusion we did. I bet had it been my original discovery, I would have jumped to the same conclusion, but hindsight says well of course the put’s at 802+. Duh! Still, as Grid’s said, price is in line with reality but the benefit of the put is lessened…. Yawn…. I’ll probably hold because it will essentially be my only existing perpetual given the lessened value….. So Grid, what’s your next one? I’m ready for another good story…

          1. 2WR, I have dug out the mine and only rocks remain. Until there is volatility, personally I am pretty much at a standstill. I got my balance of liquids and illiquids, so I can roll either way, but the market is going to have to make something happen. As there really is no diamonds in the rough at any screaming value…At the credit rating Im willing to chase anyways.
            I would be open to buying a slug of DD-A at present $83 price if Dow would send me a private email informing me they are going to redeem it (call price $102). But since it has been callable since 1947, I am not holding out much hope for that correspondence to occur. 🙂

            1. Not that this is a Grid-like security but given it, too, has a 3 1/2% coupon like DD-A and if I remember correctly it was mentioned as a place to stash cash in another thread I now can’t find, has anyone noticed that the SPE-B, Special Opportunities Fund, 3.50% Cumulative Convertible Preferred Stock Ser B has quietly gotten very close to being in the money as a convertible? With SPE having begun a monthly distribution policy recently and with the dividend impacting the conversion rare, SPE has the current conversion rate @ 1.6304 and I think that translates into a stock price of 15.33. Please do check my math. That conversion rate will change each month with each dividend paid. SPE closed at 15.23. I never bot it for the convertibility but as an attractively priced short term bond alternative, so if it actually gets in the money, that’s an added plus…. And btw, Tim, you show it as mandatorily converted on 8/19/21. It is but converted into cash I think on 8/19/21, not shares……

  12. Of interest, I just came across these 2 older article and thought it would be of help to many here.
    Why was 99% of Warren Buffet’s wealth earned after his 50th birthday? The true holy grail of Investing…
    Wishing you profitable investing, Nomad

  13. Avantor dropped IPO price way down from $18-$19 range down to $14. Plus they put a 50 convertible preferred out.

    Chemicals company Avantor Inc. shares AVTR+3.57% rose 4.5% in their trading debut Friday, after underwriters priced the company’s initial public offering at $14 a share, the low end of its range. The company sold 207 million shares to raise $2.9 billion. The company also offered 18 million shares of its 6.252% Series A mandatory convertible preferred stock at $50 a share. The company will use the proceeds of the deal to redeem all of its existing Series A preferred stock and to repay some of its senior secured term loans. The common stock and preferred stock are trading on the New York Stock Exchange under the ticker symbols “AVTR” and “AVTR PRA.” Goldman Sachs and JPMorgan were lead underwriters on the deal with another 24 banks participating. Avantor makes products for the biopharma, health care, education and government and advanced tech industries. The company is mostly made up of VWR, which was taken private by private-equity firm New Mountain and Goldman Sachs in 2017. The company has more than $7 billion in debt.

    1. I’m not sure what to make of it. The second part of the clause seems to refer to a bankruptcy (I did not send that part) The first part (which I sent) seems a little vague: “the making by the Company of a general assignment for the benefit of its creditors or”. The or is what seems to separate this part of the clause from the bankruptcy portion.

      1. This “general assignment” language is a reference to a little-used state law procedure that is tantamount to bankruptcy. But, Pete, and others: have you seen this kind of clause in other than European bank debt?

  14. Well, this should get interesting. AQNA (BB+ credit rating) 6.875% fixed-float, NI-B (BBB- credit rating) 6.35% fixed to float and DUK-A (BBB- credit rating) 5.75% fixed trading in the mid 26.50’s range. Spire (BBB credit rating although Moodys has BB+ equivalent) 5.9% fixed immediately jumped to 25.70 range.

    So where does a new 6.2% (assume still BB+ credit rating) trade at?

    1. SteveA–this will be interesting because the preferreds of all these issues have traded very strongly, but many of the debt issues have lagged–excepting the AQN 6.875% issue.

      1. I notice the AQNA issue doesn’t seem to be price affected by this new issue. Down a nickel at last look.

      2. great catch.

        Maybe it’s the tiered floating rate where libor increases after the 1st floating rate bump (at year 10). I don’t recall seeing that on other floating issues. A little extra protection

      3. Interesting S&P rates the note issue identically to the preferred…. They must be considering the subordinated of the note seriously……. So based on the rating alone, is there a real reason for the new subordinated note to want one over the other>

        1. I gotta proof read better – Is there a real reason for someone to want the new subordinated 6.20% note at a current yield 30 basis thru the preferred?

  15. Algonquin Power & Utilities (NYSE:AQN) has priced an underwritten public offering of $350M of 6.20% fixed-to-floating subordinated notes, Series 2019-A due July 1, 2079.
    The sale of the Notes is expected to close on or about May 23.
    The company intends to use the net proceeds of the offering to repay existing indebtedness under the Company’s term credit facility and the Liberty Utilities Group revolving credit facility, to partially finance the Company’s previously-announced acquisition of Enbridge Gas New Brunswick Limited Partnership, and for general corporate purposes.

    1. For what it is worth, the largest Canadian Rating Service upgraded Algonquin prefs one notch in Jan, equivalent from BB- to BB S&P: “Medium grade and comes with moderate credit risk. There may be speculative characteristics.”
      Now they are cramming a bond issue over it. Hmm, typical.
      From the Raymond James quarterly report on CN Prefs: Good comments on their perspective on resets, positioning in time of reset dates and interest rates:

        1. This is the CN rating agency and their equivalent. See the article I linked and chart at the bottom of the page, otherwise good content for those in this field. JA


    Looks like these folks are going to do both a common stock and convertible offering (AVNOP) at the same. They have dropped the IPO range to $14-16. The above writeup is bad. Pinterest announced earnings today, way short.

    One research firm is claiming in 2000, the number of IPO that came to market where the company was already profitable was 14%. Right now, we are at a whopping 15%.

    Would be nice to see new companies coming to market that actually make money. SteveA ( fully invested but rather bearish)

    1. Sorry was replying to Algonquin Power & Utilities (NYSE:AQN) has priced an underwritten public offering of $350M of 6.20% fixed-to-floating subordinated notes, Series 2019-A due July 1, 2079.

      Well, this should get interesting. AQNA (BB+ credit rating) 6.875% fixed-float, NI-B (BBB- credit rating) 6.35% fixed to float and DUK-A (BBB- credit rating) 5.75% fixed trading in the mid 26.50’s range. Spire (BBB credit rating although Moodys has BB+ equivalent) 5.9% fixed immediately jumped to 25.70 range.

      So where does a new 6.2% (assume still BB+ credit rating) trade at?

        1. What do you make of this auto conversion clause in the new AQN issue?
          Automatic Conversion:

          The Notes, including accrued and unpaid interest thereon, will be converted automatically (“Automatic Conversion”), without the consent of the holders of the Notes, into shares of a newly issued series of preferred shares of the Company (the “Conversion Preferred Shares”) upon the occurrence of: (i) the making by the Company of a general assignment for the benefit of its creditors or

        2. Grid, this Algonquin baby traded on TRACE 18 times yesterday (no symbolas Of yet) between $25.00-$25.45 and closed at $25 (last trade of the day was 40,000 shares). Most trades were larger in size and some of the trades had the dreaded “+” by them, meaning it was more than what they are reporting, but they are not offering to disclose the information. As soon as I see anything else on this issue, I will report back the ET AL.
          All the very best my friends, Nomad

          1. The Algonquin issue is trading retail this morning (because we see many small trades) Vanguard gave me a offer indication for 1000 shares at $25.40 and would not let me put in at $25.25.

              1. Fidelity shows no symbol yet however, if you place the CUSIP into the bond trading platform (015857808), it shows up but it won’t trade yet.

  17. Multiple Capital One Financial pfd’s trading ex-date today. Some are past call or are coming up on a first call date. Just FYI. Still some good yields out there on these. Careful with the calls, though…

  18. NuStar Logistics, L.P., a wholly owned operating subsidiary of NuStar Energy L.P. (NYSE:NS) intends to offer senior notes, which will be fully and unconditionally guaranteed by NuStar Energy, as parent guarantor, and a wholly owned operating subsidiary NuStar Pipeline Operating Partnership L.P. as affiliate guarantor.
    The net proceeds from the offering are expected to be used for general partnership purposes, including the funding of future capital expenditures and to repay amounts outstanding under NuStar Logistics (NSS), L.P.’s revolving credit agreement.

      1. CW, I am sticking to my guns since pre call date. NSS will leave on. They will not take junior debt that creditors are waving are debt to shove it upstairs into senior unsecured. They have too much negative cash flow to do this, I would think.

          1. No mention of NSS in the Use of Proceeds section of the 423B3 – “We intend to use the net proceeds from this offering for general partnership purposes, including to repay amounts outstanding under our revolving credit agreement and to fund future capital expenditures.” Looks like you’re going to be right again. Grid

            1. 2WR, I am almost always right….When I poach and steal credible information and lay claim to it as mine. When it comes first hand from my own collective thoughts….Well just might as well flip a coin!

              1. But you see, separating wheat from chaff is what’s key, and that’s what you’re so good at. Half my portfolio is based on it. Take that for data. lol

                1. Camroc, well we cant get beat up too bad when we stick with companies that have a captive audience, can pull the wool over PSC’s for rate increases, grease politicians for favors, and then get the customer to pay more for any mistakes they make…A great business model to ensure we get paid! 🙂

        1. You’re probably right Grid…it looks like the SA editor used NSS improperly as the ticker for Nustar Logistics which is not publicly traded.

    1. Took them forever, Fabrib. This certainly has to be the bond that is finally paying off the 2018 bond that was redeemed by revolver. They need to free up revolver for more cash needs.

    2. Juggling their debts. Borrowing to pay off revolver, probably at a higher rate. Better that they cut the overall debt load.

      NSS is junior subordinated debt, with a ton of senior in front of it.

      I have sold down my NSS to 500 shares, which is likely where it will stay. Much rather take 6% +/- in QID pref with good credit. Yes, there still a few out there.

      1. Bob, the revolver had matured spring of 2018 bond sitting in it. They had to free it up at some point. In conference call they were of course siting their coverage ratio sans the excluded NSS, so that makes me think they are not immediately looking to do anything near term with it.
        Im at the 500 share spot too myself. Not interested in anymore either. And wont cry if it gets redeemed either to be done with it.

  19. CenturyLink has launched cash tender offers for up to $525M in debt securities.
    The offer comprises six series, including 7.75% notes due 2031 and 6.875% notes due 2028 from its Qwest Capital Funding unit; 7.6% notes due 2039, 7.65% notes due 2042, and 6.15% notes due 2019 from CenturyLink; and 9% notes due 2019 from its Centel unit.
    The top acceptance priorities are for the Qwest notes; all series have an early tender premium of $30 per $1,000 principal.

    1. Spending that much cash makes now on other recalls me wonder if CTL will recall CTY, or later this year CTV.

      1. I bought more CTY this morning. It is subpar and it could get called later but anyone selling may move money there. Plus I like these preferred >7% yields 🙂

  20. For those of you into REITs ….

    A very (very) rare setback for PIMCO. They sought to bring a REIT to market (their first) with what is essentially a hedge fund fee structure.

    After 8 days flogging it, they pulled it. Good sign, and I hope PIMCO learns a little humility in the process. Notwithstanding the silly premiums folks pay for PIMCO funds there is a limit to what the market will pay in fees.

    PS – I should have gone to work for PIMCO when I got our of biz school.

    1. Grid, thank you so much for the information. Maybe this dog with fleas can hunt a bit and their Sarcoptic mange (that’s for Amy) will start going away… I always feel amazed when I see their quarterly payment show up in my account. The company that took over Phoenix has a decent balance sheet and a real asset base: Nassau Re, based in Hartford, CT, currently has combined assets of approximately $22.6 billion and capital of approximately $1.3 billion.
      Hope you are having an incredible and memorable weekend, Nomad

      1. Nomad, admittedly I havent followed lately too closely since I bought under the “maturity or bankruptcy” plan. But things looking better. Golden Gate infused capital into them when they were acquired 3 or so years ago, and Nassau pumped another $200 million in equity in Phoenix last fall. They have rebranded so it is now Nassau Companies of NY instead of Phoenix.

  21. MBFIO update. For all you who were beginning to doubt the craziness of jumping off the cliff with me into a delisted preferred, your patience is being rewarded. The new ticker symbol is MBFPP. Current opening bid is $25. Well up from the dump sell off that occurred at delisting. Should be going exD pretty soon too if memory serves.

    1. Thanks Grid. Didn’t doubt you for a second. Seriously. Followed along with 500 but I m happy to see it come back on the books. Thanks!

      1. Glad we made it through the darkness to find light again, Tim! It will be nice to see these shares are worth something again, lol. My account has showed it worth, $0.00. But since they are in my TradeKing, Lord knows how long it will take for them to get the new ticker installed.

    2. Kind of odd…MBFPP bid is up 50 to $25.50 and no sellers yet. Probably because no one can yet, lol.

      1. Yes, the symbol changed on Schwab but they are not showing any chart info yet. Schwab shows a bid/ask of 24.56/24.71, volume zero.

        1. I saw that bid/ask on Schwab. I’m not sure what to put my limit order in for given that grid is seeing $25.50 …..

            1. Tim, It closed at 25.99 on over 8,000 shares. Piss pot Tradeking still has my preferred as letters and numbers. They are the worst. One poster here Blue, wrote on other forum his shares were converted. He uses FIDO.

    3. Good example of what an illiquidity premium looks like. Surprised it took so long to come up with an OTC ticker. It’s no bargain now.

    1. Thanks Fabrib. It’s an interesting read. It’s a little beyond my expertise, so I’ll look forward to hearing from all who take a deep dive into the asset sale and the 1st quarter financials. My biggest question (among many) is if they are actually improving themselves by selling the terminal or are they simply cannibalizing themselves to fund their growth projects?

      1. Your welcome, SunnyFlorida. Their earnings get lumped under US utility operations in AES filings so one doesnt get any meaningful info there. Actually AES now only controls 85% of the stock now as they sold off 15% to a new partner.

    1. XWords, I agree on the information provided…But these guys are douchebags.
      We see some parallels to GGP with how CBL & Associates (CBL) has restructured their debt, which is why we have recommended selling.

      They “lie with the truth”. What they didnt mention was this clown outfit was recommending CBL at over $8. Then had audacity to write a “victory lap brag article” last year about buying again down at $4. It briefly spiked 50 cents and they were still way under water all while bragging…Then it rolled over like a fat hog and they dropped coverage like a hot potato on the site…And now of course they are recommending not to buy it in the $1’s. Because they are so adept at reading financials.

  22. Apollo Commercial Real Estate Finance (NYSE:ARI) slides 1.5% in after-hours trading after announcing a public offering of 15M shares of common stock.
    Expects to grant a greenshoe option for an additional 2.25M shares.
    Intends to use proceeds for general corporate purposes, including the redemption of the outstanding 8.00% Series C Cumulative Redeemable Perpetual Preferred Stock, the acquisition or origination of target assets, and working capital.
    May use some of the proceeds to temporarily reduce borrowings under repurchase agreements.

    1. Fabrib, thanks for the notice on the ARI issuance as I just saw it today. Looks like my 8% ARI-C shares will finally be called. They have been a good investment for me and I will miss the income.

    1. Ouch. Another dead soldier.

      Problem with these redemptions is that they push others to follow in their foot steps.

        1. Grid, you made me look when you first brought this one up. Yes, it’s looking more like a “bargain” every day.

    2. The New preferred issue of Federal Agricultural Mortgage Corp is already trading under the temporary symbol FMTPP ( OTC ) which will change to AGM-D when it moves to the NYSE. The coupon is 5.70% and last I looked today was trading near par of $25. As Tim.Moore commented , the funds from the new issue will be used to call in the Series B preferred. I have not seen
      any other data, so if other readers can locate the first call date, dividend pay dates, and maturity date that would be helpful to all. The dividend is $1.425 per year.

      1. If I’m to believe Vanguard (and I do) call is mid 2024. Almost certainly pay and other dates will be the same as the 3 outstanding issues.

        Funny, no SEC docs on the issue, that I could find. Wonder how they did that.

        This is one of only 2 new issues that I have bought this year. A couple I should have but didn’t. Been a lot of junk this year. This, however, is a good issue. Wish the coupon was higher (always do) and wish it was F2F, but it’s not.

        1. Bob-in-DE,

          I also show 2024, though don’t recall my source – and wrote Farmer Mac asking for the prospectus and had asked that same question: How they issued without an SEC posting. Will share prospectus if receive a link.

          Agree on rates. Would like them higher but they are what they are for now.

  23. The National Rural Utilities Cooperative Finance Corporation (“CFC”) announced today that it settled the offering of $250 million aggregate principal amount of its 5.500% Subordinated Notes due 2064 (the “Notes”). The Notes will be issued in denominations of $25.00 and multiples in excess thereof with a coupon of 5.500% per annum.

    It is trading today on NYSE under the ticker NRUC–250-million-of-5-500–subordinated-notes-due-2064.html

    1. Eugene, they sure have pristine credit. These subordinated notes are a split BBB+/A3 rating from the two big rating guns.

      1. Even though it was above par, I picked up a very small number of shares at $25.10/share – as you say they’re rock solid.

        1. I also picked up a couple hundred at $25.10. This is in my ROTH. If NRUC swings below par, I will add to my position. A solid and safe investment.

          1. I did the same thing. At 25.10 it’s a bargain compared to the other high IG utes with similar coupons. I’ll add also if it goes lower. Thanks for the alert Eugene!

                1. I bought a little. If the recent PS preferred at 5.6% so people can store their junk was reasonable, then keeping people’s lights on at 5.5% sounds more reasonable. However, it’s debatable if either one is reasonable though.

                  1. Picked up 400 in an IRA and am a card-carrying member of the 25.10 club. Eugene thank you for the heads-up on this issue. Blends well with the December and more recent acquisitions and it sure beats the 2% waiting lounge.

                    1. alpha, I can’t afford paying the waiting lounge membership dues. I’ve been all in this year although a little overweight on IG bonds from my normal allocation. I’d absolutely love it if things went bump in the night but for now all I hear is crickets.

                    2. P, Like I’m sure you have, I’ve been paying a bit more attention to EUR rates, especially Germany and Switzerland. Also that TNX has topped 3% exactly twice in the last 8 years during this growing economy. One cannot help but consider the potential scenarios if the economy rolls over.

                      The only thing I’m certain of is that I have no idea which way rates will go and that 5.5 is more than 2 (just confirmed with my calculator). Not awe-inspiring in our tax-advantaged accounts today, but there’s every possibility we may greatly value Eugene’s scoop on this 5.5%, high IG issue a few tomorrows down the road.

              1. I’m in the club too. I bought some for my daughter’s trust.

                I still have way too much in cash and no good place to put it.

  24. WINNIPEG, Manitoba/CALGARY, Alberta (Reuters) – Canada’s Enbridge is asking oil shippers to sign at least eight-year contracts to move crude on its Mainline pipeline network, as it proposes to shift away from a monthly allocation system, people with knowledge of the matter told Reuters…

  25. Aegon today announces that it is exercising its right to redeem the USD 500 million perpetual capital securities with a coupon of 6.5% issued in 2005. The securities (ISIN code: NL0000062420, CUSIP code: N007924400) are currently listed on the New York Stock Exchange with symbol AED

    1. Joel, isn’t that under 4% YTM 11/13/26…?
      While money can’t buy happiness, it certainly lets you choose your own form of misery, Nomad

      1. True! Seems the slant on seeking a decent IG hold while speculating on a div or two while waiting for a higher buyer to flip to is a possible incentive. I saw actual volume on it as I flashed by on my clicks today and was surprised to see any vol let alone at a 50% down to Dec lows. Prob a pre-mature news flash by me. Proof to do more work, esp with this informed crowd! Thanks for keeping me on my toes! JA

        1. Joel, Like you I’ve been keeping on eye on PLDGP, though tagging onto Nomad’s comment, at $15 over par, there’s some serious downslope in PLDGP’s future. No preferential treatment of dividends, though this volatile pfd BBB might be interesting under 60 if it doesn’t take too long to get there.

  26. Picked up some extra shares of KTBA for $26.75 owned by ATT.
    Structured Products CorTS, BellSouth Debentures, 7.00% Certificates
    52 Week Range 25.10 – 29.90

    1. Libero, I play this one frequently myself. Bought again earlier this week or last week at 26.70 for the upcoming 6 month interest payment due end of this month.
      Gotta love this trust debt issuance. You got a Bell South subordinated debt issue, held in trust by USBank, assumed by AT&T, which is really Southwestern Bell that used the AT&T nameplate.

      1. I hadn’t heard of this issue before so I did a little research. According to QOL it is noncallable to 2095. At a $26.70 entry point the CY is 6.55% – not bad for a bond backed by ATT, which has to pay dividends to satisfy shareholders. This is a better rate than other ATT debt. I would buy it for the risk/reward you get for the interest rate, but also there is good upside opportunity for a flip. Am I missing something?

        1. xwords59, this is only my opinion and I urge you to do your own deep due diligence:
          KTBA is the old debt of Bellsouth; one of the Baby Bell forced spinoffs from the break up AT&T January 1, 1984 and very illiquid. The coupon is 7%, goes EX date 5/30 for a 6th month payment, non-callable, maturity is when many of us will be distant memories 12/1/2095. The issue is that AT&T is the largest corporate debtor this planet has ever know with a whopping $193.73+ of toxic debt. They have a horrible balance sheet with only +6.52 billion of cash and must borrow each quarter to just pay their enormous dividend; with 7.3 billion shares (!) JUST the dividend each year is $14.892 billion! The equity of AT&T (a good measure of financial performance and management effectiveness) is horrendous:
          1 Year +2.44%
          3 Year Average -1.98%
          5 Year Average +2.54%
          10 Year Average +6.56%
          15 Year Average +5.48%
          The only ones that have made any real money with AT&T is their inept management team.I am long a bit of KTBA (I flip back and forth each year to capture the 6 moth payment) but this is not the widows and orphans holding that it use to be when these bonds were issued 6/10/1999. BTW, the rating has been withdrawn from Moody’s and when these bonds were issued they were rated AAA, today AT&T’s bond rating is just above junk at Baa2 Moody’s and BBB by S&P…Smile
          If stock market experts were so expert, they would be buying stocks, not selling advice, Nomad

          1. Nomad, I agree people always need to know the bad with the good. Heck many people dont even know AT&T really isnt even AT&T. Its Southwestern Bell with the name change. And its not even the same company in current form. It is a debt monster, but a cash flow machine. I own KTBA in same format as you, and am in currently just recently repurchasing last week.
            Remember though this is actually a REAL subordinated debt trading bond though…BBB rated and last trade was May 2 at $112. That leaves the actual bond with a 6.2% yield. The trust debt off it will always trade a bit higher due to the tiny underlying risk of US Bank being the trustee, and provisions for a jerk off sell liquidation most likely if T suspended interest payment.

        2. Xwords, remember this is illiquid and can move 50 cents on a market order trade. But it can be bought if patient. I determined 26.70 was my entry point this time and I actually got the 20 cent drop in just a few hours. Also, I would suggest yield is higher since the 6 month interest cycle is payable end of this month. About 87 cents if memory serves, so its “accrued” (yes they trade flat though) interest payment for this cycle is 85% plus complete.
          Its a true perpetual bond, so that exposes one to longevity risk and long end yield curve risk.

          1. Grid, The wonders of a 1000-share market order hitting an illiquid like KTBA were evidenced by the $3+ run-up of the issue on March 21 when it jumped from $26.37 to $29.90 in a matter of hours. I’m particularly aware of this because I’d entered a limit sell at $27.75 on March 5 on the expectation of an eventual market order bonus, though my limit sell did not execute. When I pressed FIDO on this, the geniuses at their “senior desk” tried to attributed it variously to “the market-maker making money” ($3/share LOL) or that my limit order did not execute because it was above the ask. I had to explain the dynamics of market orders to a supervisor at this “senior desk” (I kid you not). They refused to fill and near-angrily refused to investigate. It was a remarkable experience. By amazing coincidence, “Privately” who hangs out at SI had his limit sell at $28.50 at Schwab into that market order and generously shared a copy of that trade w/me. Along with the time and sales charts and a few other documents, burned off a letter to FINRA and the SEC. Well, two weeks later, which was Thursday morning, the trade was quietly executed off-market by FIDO. Traveling now but can see from my scanned email we have a letter incoming from FINRA which I”m looking forward to reading – but it’ll have to wait while we work our way through Mai Tais the next few weeks.

            1. Congrats on your perseverance, Alpha! You deserve those Mai Tais’s in reward for righting a wrong!

              1. All – thanks for the insightful comments. I am actually a telecom industry veteran and am familiar with the T story. Yes, I think there are definately some risks that could cause problems (remember GE?), but I think T is in pretty good shape, at least for now. It will take several years for the dust to settle on 5G, but in the meantime they will have about 150 million phones to sell.

                I will try to enter selectively at favorable pricing. Maybe I can get lucky like some of you with a limit-sell order and get a nice short term flip.

                1. Xwords, Like you I am not losing sleep over T meeting debt obligations. I wouldnt be so sanguine about trying to get my 6% through the common as far as long term safety goes….But that is not my problem.
                  Just kind of looking big picture, we are what 8 years or so into post recession crisis of economic growth and the best we could muster was 2 brief blips above 3% on 10 year. Just this past year and about 5 years ago.
                  In the ghosts of economic past there are 3.5%-4% perpetual preferreds still trading issued 70 years ago. Wouldnt seem to be outrageous to hold some 6% plus uncallables in the fold as protection from any southbound movement from long end. Its not the majority of my preferred holdings but I do like holding a few of these types alongside the others I have.

              1. And it wasn’t even about the money Qniform. I was more interested in them investigating what went wrong as this goes right to the core of it for all of us – either we have confidence in equitable execution of orders, or the market ceases to exist. They were defiantly clueless, but I expect they were fined. One can only hope it was large enough to raise an eyebrow in their compliance department. Of course the order was filled, so we know something moved…

  27. I stand corrected. PW-A has gone up on 3.5X ADV today per Tim’s high/low volume spreadsheet.
    – Dave

  28. PW-A
    Does anybody have an opinion why PW-A curiously spiked up today in light volume? Peaked at 29.84 today vs. 25.63 just a few weeks ago (+ 16.4%). Perhaps a market order in a thinly traded preferred or is there an underlying fundamental reason???
    Thanks for any opinions.
    – Dave

    1. Whoever bought mine, I hope they enjoy them. No logical reason, and this issue doesnt usually do that. But I made over $2 a share for a quick hold so I am not complaining. This is actually kind of heavy volume for this issue. Only about 140,000 shares available.

        1. Dave, if it was skill, I would have bought a heck of a lot more to begin with, lol. The standing bids were way above $27, so it was no accident. Computer bot maybe jumping onto momentum from a bad trade?

        2. Dave, I wasnt really paying attention when I posted. I made almost $3 on each share holding a month or so. Actually almost 3.50, because I bought maybe 6 weeks ago at 25.30 sold at 25.80 then it dropped back a quarter and then I bought them again.

  29. Hey Tim-
    Would it be possible to increase the number of recent comments? I have found that if I miss a day or even a few hours, sometimes I miss some discussions that I have found by accident while perusing later. I have found this site so valuable that I hate to miss anything. Thanks for all.

    1. I would love to see this also. It would also be nice if they were higher up on the page. I think it would be OK if they were above Categories and Archives.

      1. David, This is a good case in point. I just found your reply from my 5/2 comment. Any consideration to this addition would be great. Thanks

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