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For instance if we are not at our computer and a reader spots a new issue being issued they can post it below where others can come for ‘breaking news’ from other readers.
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We only ask that comments beyond the breaking news be kept to other pages or this page will be ‘out of control’ and not fulfilling what I hope is a handy alert page.
SBBC was called 3/18 (and my shares were cashed out), but it looks like it’s still trading?
Buongiorno JDubs, confermo la tua impressione. Ho pensato che non sarebbero state rimborsate e ho venduto a quelle che detenevo a $25,32 Poco fa mi hanno accreditato la cedola maturata nelle ultime due settimane.
Non ci ho capito nulla.
Let me take a shot at translating his Italian:
Hello JDubs, I confirm your impression. I thought they would not be reimbursed and sold to the ones I held for $ 25.32. A little while ago they credited me with the coupon accrued in the last two weeks.
I didn’t understand anything.
BPRAP just took a dump down to $23.60 on 20,000 units traded this am. Can’t find any news suggesting problems and the stock didn’t even have a blip.
BPRAP ask is now back up to $24.67 currently at 9:21 central. What happened? Just a very large all-or-none sale?
I saw that and entered a quick limit buy at 23.70 but no luck. Somebody got a lucky hit
Thanks to Nomadicmist and Gridbird for the recent input on the AFFS baby bond I had posted last Friday. They finally paid their payment Monday afternoon. They had never been late up until this payment, the first after they went into hiding.
Maybe a little late to the party though NEEPRN is now (finally) trading at FIDO. Picked up 800 shares. Plenty of sister NEE pfds underscore the value of the trade. The ticker (NEE-N) is loaded up in TD, though at last check was still not tradable on that site.
Looks like NEE-N is trading around $25.26 – $25.28. Not unreasonable given the higher coupon rate.
I own a moderate amount, might add more if there is a dip down to the par area.
Alpha, I wish I had bought more when it was on the Grey Sheets. I think this is a quality issue that in such a low interest rate environment is a easy cash flow blessing…
Nomad, I’m already second-guessing not picking up more. Grateful for our December buys though there’s no peace as we’re being coerced to sell some due to cap gains equivalent to years of dividends. Sold NI-B for over $2 gain plus divvy or around 10% gain from 24.70 purchase just a few months ago. Crazy. Ready for another December. lol
So the biggest and only news coming from the Medley LLC (MDLY) meeting was that adjourned it. I wonder how much further they will get next time on March 29th.
NEW YORK, March 15, 2019 /PRNewswire/ — Medley Capital Corporation (NYSE: MCC, “MCC”) (TASE: MCC), Sierra Income Corporation (“Sierra”), and Medley Management Inc. (NYSE: MDLY, “MDLY” or “Medley”) today announced that each Special Meeting of Shareholders of MCC, Sierra, and MDLY held earlier today (the “Special Meetings”) in connection with MCC’s proposed merger with Sierra and Sierra’s concurrent acquisition of MDLY was convened and adjourned without any business being conducted other than the adjournment.
Some recently asked about a list of QDI preferred issues and I came across the link below. Note that I have not verified the accuracy of the list so your mileage may vary. Use it as a start point.
https://www.dividendinvestor.com/preferred-stocks-qualified-distributions/
mikeo, thanks for your post. “Security Finder” link here works as well, if not better. Select in “Qualified” drop down (i.e., last one): “Yes”
https://innovativeincomeinvestor.com/income-security-finder/?wpv_view_count=193-TCPID1157&parent-ticker=§or=0§ype=0&payment-months=&cumulative=&qualified=Yes
Ameritrust has apparently decided to pay their preferred dividends and NOT their baby bond dividends. Anybody notice that today? Never heard of that before.
Make that AmTrust
BTW, what day did they pay? I have no skin in the game but am following the preferreds and baby bonds. I flipped the baby bonds a couple times, but am waiting until the “coast is clear”. I already have (PFX) Phoenix 7.45% 1/15/32 bonds that are delisted (of course they are paying) CUSIP 71902E208…
All the Amtrust preferreds were paid 3/15.
Citigroup Says It Plans to Fix Its Preferred-Stock Problem
Citigroup is “actively evaluating alternatives” to change an unusual quirk in the language of its preferred-share contracts, according to recent comments from its executives. Such a fix would help investors avoid a worst-case scenario of unexpectedly low yields if regulators succeed in their efforts to kill off the benchmark London interbank offered rate by the end of 2021.
The back story: On Jan. 11, we warned about the language affecting $11 billion of Citigroup’s (ticker: C) preferred shares. Those shares’ yields are meant to switch from a fixed rate to a floating rate on a predetermined future date. The problem is that the floating rate is based on Libor, which regulators want to discontinue. And if Libor is discontinued, investors could get stuck with lower-than-expected yields. Here’s why: Unconventional language in those shares’ contracts say that if no banks are providing Libor quotes when the shares switch over to a floating rate, the benchmark will be Libor at the time the shares were issued. Interest rates were near zero back then.
The plot twist: It looks like Citigroup is paying attention. On Jan. 24, Citigroup Treasurer Mike Verdeschi said the following on the bank’s fixed-income investor call :
…while we and our peers have begun to adjust the LIBOR provisions in our new issuances to allow for a transition to a successor rate, the industry is still in discussions regarding marketwide standards for new issuances and the language in legacy securities. That said, we recognize that the language affecting a subset of our preferred securities is unique and is a concern for investors given the potential for dividend rates to revert to the LIBOR setting at issuance when and if LIBOR is discontinued. We are very focused on this language in the subset of our preferred securities and are actively evaluating alternatives to address it.
That provides more detail than the bank’s April 2018 conference call, in which Verdeschi said the following:
We recognize that that language presents a concern for our investors. We fully appreciate that. As we’ve said, we really value the relationship with them and we recognize the need to address that as we look at the potential of LIBOR being discontinued. And so, that’s something that we are still very focused on. As I said, we have representation on a lot of the committees and working groups that are working towards the transition on LIBOR and we want to work alongside all that to adopt industry-best practices. So, that’s something that’s still very much on our mind.
Insofar as “recogniz[ing] the need to address” something isn’t the same thing as “actively evaluating” ways to address it, Verdeschi’s Jan. 24 comments show the bank is getting serious about adjusting its benchmark.
Moving forward: Citigroup hasn’t decided how exactly it will change the language in those contracts, however. The bank has a few different options, as Verdeschi discussed on the Jan. 24 call:
Each potential path forward, whether we address the issue through an exchange or an amendment or some other means, has different considerations which is what we’re currently working through. Also, we want to be thoughtful and aligned with industry’s best practices to make sure any decisions we make in the near term will not be inconsistent with the ongoing work we’re doing with the rest of the industry. And so while we’re not yet in a position to discuss any particular action or timing, we’re very focused and engaged on the issue, recognizing that it’s an ongoing concern for our investors.
Stated otherwise, Citi could exchange the $11 billion of preferred shares for new shares with stronger contractual language, or it could amend the contracts on those securities to fix the problem. Verdeschi also said the bank could use “other means,” which might include buying back the shares, since they become callable the same day they switch to a floating rate.
The bank is a member of the Federal Reserve-backed Alternative Reference Rates Committee, an industry group formed to push the market toward options other than Libor. The committee is still pressing forward with its efforts to replace the benchmark in the markets for loans, interest-rate derivatives and securitized assets.
Of course, the preferred-share market is just a drop in the $200 trillion bucket of securities tied to Libor. Because of that, the committee may not choose a tailored benchmark replacement for preferred shares. That’s all the more reason for Citi to tackle the issue itself.
Citi had slick lawyers for sure. I looked at several prspecti and the language was consistent. Amazing how they snuck it through. I’m pleased by Citi’s comments (I own K and N shares); they surely saw the litigation hand writing on the wall if the LIBOR rollback terms were ever implemented.
For those holding NI-B:
NiSource (NYSE:NI) declares $0.20/share quarterly dividend, 2.6% increase from prior dividend of $0.195.
Always (well, almost always) a positive seeing the underlying bump the divvy.
I already noted on another page here on the site that the announcement to call it has been made. It is being called for 3/1/19. Announcement was made yesterday, I believe. I posted a link.
I didn’t realize we’re past the ex-div date, my mistake. No wonder.
Thanks built_ll-last
A8, thanks for posting. One of the smartasset website articles mentions DRIP. There has been some discussion of the pluses and minuses of respective brokerages. DRIP method among brokers also differs and can be added to that list of brokers differences. Perhaps not pertinent in III since folks typically DRIP common shares and in non-taxable accounts. If I am not mistaken, TDAm buys DRIP shares on div pay date at noon. Fidelity’s method seems often favorable. According to a poster in M* years back, my understanding is that Fido buys DRIP shares through multiple days and averages share price; shares are bought from XD to pay date (or perhaps through day prior to pay date). No rep at Fido seems to be able to explain their DRIP method.
I follow these prophetic words “STAY AWAY FROM CALIFORNIA”! I use to live there years ago and it’s truly a beautiful state that is just messed up for any investor that has to rely on their politics. Wishing you profitable investing, Nomad
Yes Tex–always a good reminder for newer folks–looks like someone got an expensive ‘lesson’ in liquidity (or lack there of)
Its not the end of the world, Timdman to be stuck with an odd lot. I own an issue that I currently have a bit less than a 100 shares….But I still have more than 10% of the outstanding float, lol.
I should have also pointed out a side effect of placing limit orders on preferreds/baby bonds. You will become a charter member of the “one share club!” Some percentage of the time, your limit order will be filled with a single share. Here is an extreme example from today 1/25. NNN-E traded 42.734 shares but had 11 single share trades. Usually these are done on
“dark pool” exchanges so you cannot see any open buy or sell orders. I have not been watching this recently, but it used to be that nearly every morning at the 9:30am opening, you would start with one or more single share trades. My assumption is that ~ all of these single share trades are done by institutions or someone that does NOT pay regular a regular ~ $5 commission.
If you are going to play in the preferred/baby bond sandbox, this is just a fact of life you have to accept. . . .
Thanks,
YB
Thanks guys. I can live with that but I won’t overpay. I’ll just keep trying to round it up to 100 shares, never know what this crazy market will bring
If you use Merrill Edge, depending on your status and how much cash you keep with them, you can do a hundred trades with penny’s on the dollar. ex. Platinum with honors.
Anyone know who is behind Origen Phoenix and why they have such an interest in this issue?
Bob, Grid had a great explanation as to the reasons behind the first and now second attempt by Phoenix to buy up all the JBK they can find.
I’m sure Grid will chime in to clarify, but the reasoning goes like this:
The JBK shares have an underlying bond, which is selling for a larger premium than JBK at present. If Phoenix can accumulate enough JBK, they can redeem the appropriate number of underlying bonds at par, then turn around and sell them.
They then keep the difference between what they sell the bonds for and what they paid for JBK.
As example, if they pay $26 for JBK, a 4% premium, and can sell the underlying bonds at 10% premium, they keep 6% profit, a nice profit in a relatively short period ( they usually open the tender for 1 month ).. Not bad if they can swing the deal.
Its also possible its a front out fit for Goldman Sachs. The bonds on last tender dissapeared within days from the trust according to SEC filings. This is a massive Goldman debt issuance that essentially is uncallable with out make whole provisions. They have figured out a way to redeem half of it. This underlying bond was traded openly and was packaged into several trust ETD issues back in the day it was issued. Origen headquarters is in NYC.
Here is the revised offer from Origen Phoenix, upping the tender price to $26 from $25.25.
=====================================================
Tender Offer Increased to $26.00 for Corporate Backed Trust Certificates – $26.00 for each $25.00 principal amount
01/24/19 12:13 PM EST
Tender Offer Increased to $26.00 for Corporate Backed Trust Certificates – $26.00 for each $25.00 principal amount
PR Newswire
NEW YORK, Jan. 24, 2019
NEW YORK, Jan. 24, 2019 /PRNewswire/ — Origen Phoenix LLC (the “Purchaser”) has increased the purchase price for its cash tender offer to $26.00 for any and all outstanding Corporate-Backed Trust Certificates, Goldman Sachs Capital I Securities-Backed Series 2004-6 (CUSIP No. 21988K859) (NYSE symbol JBK) (Bloomberg symbol JBK Pfd) (the “Certificates”) as described below (the “Tender Offer”). All other terms and conditions of the Tender Offer remain unchanged. The terms and conditions of the Tender Offer are described in the Purchaser’s Offer to Purchase dated January 8, 2019 (the “Offer to Purchase”), the related Letter of Transmittal (the “Letter of Transmittal”) and Supplement No.1 to Offer to Purchase dated January 24, 2019 (the “Supplement”).
The Tender Offer will expire at 5:00p.m. EST, on February 8, 2019 unless extended or earlier terminated (the “Expiration Time”). Holders who validly tender (and who do not validly withdraw) their Certificates prior to the Expiration Time will be entitled to receive $26.00 for each $25.00 principal amount of Certificates. Holders will not receive any accrued and unpaid interest on their Certificates that are accepted for purchase in the Tender Offer.
The Tender Offer is subject to the conditions in the Offer to Purchase and the Letter of Transmittal. Provided that the conditions to the Tender Offer have been satisfied or waived, payment for the Certificates purchased in the Tender Offer will be made promptly after the Expiration Time which is expected to be on or about February 8, 2019.
This press release is neither an offer to purchase nor a solicitation of an offer to sell the Certificates. The Purchaser is making the offer only by the terms of the Offer to Purchase, Letter of Transmittal and Supplement, copies of which may be obtained from D.F. King & Co., Inc., the tender and information agent for the Tender Offer, at cbtc@dfking.com or (877) 297-1738 or, for banks and brokers, at (212) 269-5550.
Forward-Looking Statements
This press release contains forward-looking statements, including those related to the completion of the Tender Offer. Forward-looking statements involve many risks and uncertainties that could significantly affect anticipated results in the future. The Purchaser is not under any obligation to update its forward-looking statements as a result of new information, future events or otherwise, except as required by law.
Source: Origen Phoenix LLC
info@doxiebrook.com
Inspbudget, So they are basically offering you 20 cents above par, as they are scalping the almost 80 cent interest payment for themselves.
Yes, indeed. A shameless ploy to literally steal JBK shares from naive shareholders for $26, then turn round, redeem them for the underlying bonds, and then sell for equivalent of $27.50 ( 10% premium of the bonds ).
Wish I had the resources to do something like this, huh?
I am guessing that as time carries on, if interest rates remain low, Origen may bring forth future JBK tender offers and upping the price appropriately to capture the spread. I will sell them my shares for $27.50.
Congratulations! You spun the wheel and won:)
Libero, I cant claim victory here. I am holding this one…For good or bad…Ask me in a year, lol… I like the 7% QDI and they are presently eons better shape financially and liquidity wise than PCG. But if saying put your money where your mouth is, then my issue is really MTB- and MTB-C. My SCE preferreds are a very modest amount of my investment money.
I am having the same problem with “quantumonline” so not just your computer.
SCE is one big fire away from bankruptcy itself….caveat emptor
Thanks Eugene
Ouch
Thanks Eugene
Grid- any update on
That weekend find of the 6 % issue? Thanks
Still working on it BigBear. I will let you know. It could be a decent issue but it wont be an earth shaker of a deal.
Hi Nomad! Yes, I read everything 🙂
I hope you’re able to buy them. Especially since I’m hoping to find out what they are! Any secrets you can share on how you go about researching these? I’m always amazed at the preferreds you share.
Somebody better alert the surrounding neighborhoods if Grid starts buying nuclear generators.
I am at 5% in NI-B (overweight for me) but not as much overweight as AQNA at 6%. Other than Ally-A, NI-B, and AQNA everything else is at 3-4%.
BTW : I can confirm that Fidelity did NOT do Canadian withholding on AQNA since it is my IRA rollover account. This was automatic and did not require me to fill out any paperwork.
In addition to SIFI financial institutions, I love utility issues that pay 6%+ especially when they float like AQNA and NI-B
I grabbed AQNA at $24 which i thought was a gift. But at BB+ rated and now becoming a high flyer, i have sold mine on a few week flip, as i think it has investment crazy greed behind it. The wild swings in the market have been interesting lately.
Mr. Lucky, I was waiting for that sell off….I knew in that scenerio the liquids would crater and the illiquids would stay strong. The plan would be to sell the illiquids and past calls into new call protected issues that cratered well below par and lock in those issues…
Well the plan never totally works out.. I did rotate a big chunk into these, but then turned right around and sold them off to lock in easy money cap gains.
But….Of course…A leopard never changes its spots. I then start buying what I always buy, past call issues (though at better prices) such as the MTB preferreds and ALLY-A…..At least I locked into some call protected issues at good prices such as EBBNF, EBRGF, NI-B, and CBKPP for example. So all isnt lost I guess.
A year ago (maybe even 6 months) they could have sold this turkey!
I asked TDAMERITRADE the same question. They replied to me “We do not complete the form 990-T for you but we are able to file it on your behalf. If you would like us to, please provide us with the completed Form 990-T, a copy of your K-1 and the signed authorization that I have provided”.
Hi wedgehead–just posted on the site. Some had mentioned yesterday, but didn’t have pricing.