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I was reading the “Energizer” posts where someone brought up the K-1 discussion. I have mostly stayed away from these, but I was reading an article about how a lot of brokerage companies would file these for you if your investments were in an IRA. So I posed the question to TDAmeritrade and this was the reply I received. “IRA clients who receive a Schedule K-1 from an MLP which shows Unrelated Business Taxable Income (UBTI) equal to or greater than $1,000, which is found on line 20 with a code V, can mail their Schedule K-1, along with their account number, to TDAmeritrade to prepare their Form 990-T. There is no fee charged for this service.” I hope some of the readers might find this info helpful and clear up some of the many questions of K-1s. You may want to ask your broker if they provide this service.
In case anyone is interested, TDAM is offering a Citigroup 3% fixed rate callable Note: 12-Month (Maturity 1/31/2020); pays monthly; first call 7/31/2019; Moody/SP: Baa1/BBB+ ; Offering: 1/16 to 1/29/2019
CUSIP: 17326YU87
Thanks aarod – I usually check their new offerings but missed that one – nice place to park some cash for a year.
TDAm also has in inventory: TD Bank 24-month callable step-up note: 3.1% first 15 months; 3.3% for next 6 mos; 4.3% for last 3 months. Maturity 31 Jan 2021 Moody/SP: Aa3 / A; pays quarterly. Callable starting Apr 2019, quarterly thereafter. TD Bank was 11th safest bank in top 50 safest bank list (posted in III recently), No 1 in NA. This note no longer shows up
online so one has to call their fixed income desk. Settlement date is Jan 30 or 31 2019. ….. but for 24 month, one may want to consider KYN-F and/or LANDP
Inventory for new issues of fixed-inc inventory at TDAM may show up at two different tabs. I continued to check both, get different results. Under “Trade” tab, click on “Fixed-income New Issues.” And under “Research & Ideas” tab, click on “New Issues” under “Bonds & CDs.”
Also, one can make sweep account to a higher yield MM (Federated Investments’ Prime Cash Obligation Fund) that is more competitive. 7 day yield is ~ 2.2% (but I have not checked recently).
I am in no way promoting or endorsing TDAM. I use Fido, Schwab, and ML as well – each has its respective pluses and minuses. In fact, Fido’s MM sweep account provides best yield, ~2.38%
Thanks again – good tip about the MM – sitting on too much cash right now.
Good info aarod
enrxp (Energizer holdings) now trading (7.50% Series A Mandatory Convertible Preferred Stock at $100.00 per share) in the mid 102s.
Apologies if this has been posted elsewhere.
Hi wedgehead–just posted on the site. Some had mentioned yesterday, but didn’t have pricing.
Ok great Tim.
Best, Wedgehead.
HCFT-A is being redeemed as of 14 February. The high pay out rate was good while it lasted. 1 month!
Sorry, I’m a day late and a dollar short. I didn’t read yesterdays posts. Old news. I should have known with the folks that post here, someone would have been on top of the news as soon as it was announced. It’s one of the reasons I like this site so much.
Wondering if anyone else has seen this article in Barrons weekly about libor being suspended in about three years, and the potential effects on F-F pref shares.
https://www.barrons.com/articles/libor-preferred-share-investors-51547226509
A new issue from JPM ( JPM-C)
https://www.sec.gov/Archives/edgar/data/19617/000119312519010366/d687927d424b2.htm
Does anyone know what the temporary symbol of this issue will be?
Inspbudget–it is not released as of this moment-10 am (central)
Thanks Eugene
Interesting. I brought JPM-D last year at $25 per share. Sold at $25 per share as selloff occurred. Now at $24.73. That issue was 5.75%.
This issue? Might be interested at a fixed rate of 6.5% or above or a floating rate at 6% or above in 5 years.
Right now WFC-Q 5.875% with a floating rate in 5 years of Libor+3.09% is trading at $24.94
Sempra Energy (NYSE:SRE) +1% after-hours following news it will join the Dow Jones Utility Average, replacing PG&E, effective prior to trading on Jan. 18.
For those who own MTB- and MTB-C preferreds (I own both) M&T just declared the preferred stock dividend today. This is important because a redemption notice did not come with this past call issue (it became callable last dividend payment) So one can reasonably assume it will at least be around for the following dividend also.
BUFFALO, N.Y., Jan. 15, 2019 /PRNewswire/ — M&T Bank Corporation (“M&T”) (MTB) announced that it has declared quarterly cash dividends of $15.9375 per share on each of its Series A (NYSE:MTBPr) and Series C (NYSE:MTBPrC) preferred stock. The dividends will be payable February 15, 2019 to shareholders of record at the close of business on February 1, 2019.
For those who own JBK, I received a tender offer today, for a total of $25.25 and no accumulated interest.
Interesting that the current open market price is $25.59.
I suspect the tenderers are not going to have too many folks accepting their offer.
Inspy, Is Origin doing this again? The issue has 60 cents of accrued interest in it.. And the underlying bond is well over $100 usually around $110. They are trying to fleece the blind with that 3rd party tender. This tender is way worse than the last one in August. They were at least paying a 70 cent premium plus the accrued interest payment.
Yes, you are absolutely correct. It is Origin Phoenix LLC making the tender.
Very disgusting the way these crooks trying to take advantage of naive shareholders.
Inspbudget, How did Origin contact you? They must be making plenty of dough as there are articles from 20 years ago about this. Apparently they buy no more than 4.9% of any issue thereby escaping the SEC regs.
Alpha8, I received a notification from my broker that there was a “corporate action” message in my inbox.
This is dated 1/14/2019. As Grid says, it is so much worse than the one they had in July 2018, at least they offered $26.5 then.
The offer is for $25.25 per share of JBK, no other interest. Why offer at a price below current open market price? I wonder if they are planning a short attack to bring the price down before Feb 2, which is when the tender ends. If they do, I will likely buy more around par.
It is a voluntary tender, so default action is not to tender – which is what I will do, just ignoring the offer.
As I suspect most shareholders will quickly see through this and ignore it, there will be some who will take it for whatever reason they have.
Alpha they got almost 50% of the float last offer. This isnt a stock per se in an ownership of a company. This is just a certificate that lays claim to the underlying bond held in trust. They immediately withdrew the bonds held in trust last time. They pocket the spread from buying the shares and then selling the bonds. Or, its a front for Goldman who has been trying to redeem these 6.345% trust debt bonds for years.
Inspbudget and Gridbird, What a racket.
Yes, Grid & I were talking about this last July when the first tender happened.
They got a nice bunch from the tender for which they paid $26.50/share. Then they redeemed as many bonds they could using those shares, and the bonds can be sold at 110% of their par value at the time. So the intrinsic value of each JBK share was actually 110% of par ( or $27.50 ).
They paid $26.50 to the naive shareholders, redeemed the underlying bonds for effectively $27.50, and pocketed the difference – plus any accrued interest of the bonds.
You’re correct – what a racket. And they’re trying to do the same thing again. Well, they ain’t getting none of my 500 shares.
HCFT-A being redeemed on February 14, 2019.
https://www.prnewswire.com/news-releases/hunt-companies-finance-trust-announces-redemption-of-all-series-a-cumulative-redeemable-preferred-stock-and-new-40-25-million-credit-facility-300778848.html
Sorry to hear this news…HCFT-A was a sweet monthly payer and had just increased its coupon.
For completeness sake: On Jan 14, ENERGIZER HOLDINGS (ENR) announced offering of common stock and mandatory convertible pfd stock. The Pfd’ OTC ticker symbol is ENRXP
Hi aarod–I saw that but it didn’t have a coupon in the filings–will watch for more info.
Another blog has it as 7.5% but no link to any documents or press releases
Tim, Is it possible to list the latest post at the top of the page and the earlier post at the end? It would save having to scroll to the end of the page to get the latest post. Thanks for a great site!
Yes, that’s a good idea.
Eugene–we should now see the newest posted first.
If there are comments to a post the reading becomes backwards.
danzeb–I turned it so the latest THREAD is first–yes the comments will be below the THREAD. We can go a few days a see if that works–can always change back.
puck49–I was thinking the same thing the other day. Let me look at the settings. If I am too ignorant to do a change, maybe the tech folks could do it for me.