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Getting pissed with Fido on this ‘allowed to sell max 50 shares on XOMAP’. A 100 share trade is too much on a 687 sh day.
Must reconsider SCHWAB return…arrgh. But- it might not be worth it since I’m not really trading- just clearing some perpetuals-going to to take some time, not giving them away.
Isn’t odd that they would make a limit 50 which is considered an odd lot right? One would think the limit would at least be 100 so you would show up as the best ask if that is the amount you wanted to place. 50 is like limbo. No one can even see it unless they are looking at level II data. Does this rule actually harm their customers in some fashion?
Gary and fc,
Fido explained to me that they base these share limits on the average size of trades, not the average daily volume. My Time and Sales window shows 14 trades made up yesterday’s 687 shares. 687 / 14 = 49.07 shares per trade.
There was a 275 share trade. I don’t know how that was allowed. Maybe another broker that lets its customers trade without restricting size. No idea.
Forcing us to make multiple small trades lowers the average size per trade. I was trying to swap MITN for MITP. Could only trade 100 shares, then only 50 a couple times, now I can’t even trade 40 .Now it isn’t worth the effort.
Harm- maybe – if you really need to sell or buy, which I don’t . Still, I don’t like the idea they know what trade size should be. I left them over 4 yrs ago for their nannying- guess I forgot what a pain.
They also force you to put tax free issues, like muni CEFs into the taxable account. My choice, if I want it in my IRA or ROTH– for the yield, not a tax benefit- I keep very little in the taxable.
Gary, the old story of letting your winners run and cut your losers. I was looking this morning and a lot of holdings in our accounts are showing green. But there is a big difference in the number of stocks being up big time and others being up marginally. The ones up big time are ones I bought on a dip in the market.
Others I have purchased based on the yield and not on how much they were discounted. This includes recent purchases. A lot of these are currently showing a .1% to a .3% gain
This seems to be in the category of CEF and BDC’s even though I mostly hold only preferred and BB
My mistake I need to correct as I ran out of time on the above post. Should of been .1%to a 3% gain showing on a lot of recent purchases and buys this past year based only on trying to lock in yield.
I watch to see if there’s any changes in performance of the company. So far most are doing good and not deteriorating. But it makes me wonder if there’s a sell off in the market as a whole that these babies get thrown out with the bathwater. Could be a loss of capital.
Just thinking out loud here.
Midday Preferred Ups & Downs…
UP —LUXHP (+$2.15)…PEB-H (+$0.59)
DOWN—AHT-H (-$1.12)…SACH-A (-$0.93)…PSEC-A (-$0.86)
Heads up from Fido today, full call of ZIONL and ZIONO 12/16. Should I trust them? 🙂 both go ex 11/30.
D it was noted a couple days ago that Zion did a private placement and borrowed money to pay off 3 different outstanding issues All at the same time. Now you have to find another home for the money
Interestingly I don’t see it in their ir section of the website. In their new issue announcement they specifically stated that it was not a call of any pfd and that a separate announcement would be made in accordance with the pfd/ sub notes requirements. Fidelity may have jumped the gun.
From their press release on their website about the notes. No specific date was mentioned, but they have declared the next dividend.
Full redemption of its Series G Preferred Stock (CUSIP: 989701859) at a redemption price equal to $1,000 per share (equivalent to $25 per depositary share), plus any declared and unpaid dividends, without accumulation of any undeclared dividends;
Full redemption of its Series I Preferred Stock (CUSIP: 989701BD8) at a redemption price equal to $1,000 per share, plus any declared and unpaid dividends, without accumulation of any undeclared dividends;
Full redemption of its Series J Preferred Stock (CUSIP: 989701BF3) at a redemption price equal to $1,000 per share, plus any declared and unpaid dividends, without accumulation of any undeclared dividends; and
Full redemption of $87,890,550 aggregate principal amount of 6.95% Fixed-to-Floating Rate Subordinated Notes due September 15, 2028 (CUSIP: 989701818) at a redemption price equal to the principal amount being redeemed plus any accrued interest
Schwab is showing the same thing, so I think the 12/16 date is real.
I found a 30 day call notice in the prospectus for ZIONL, wouldn’t be surprised to see it come out tomorrow.
Blackstone For Lunch Today?
Blackstone acquires majority stake in Jersey Mike’s for $8B.
Blackstone is taking over the world!!
Corebridge Financial, Inc.
% Junior Subordinated Notes due 2064
https://www.sec.gov/Archives/edgar/data/1889539/000162828024048348/crbg-424b2prelimprosuppdeb.htm
Got it J–thank you!
FIDO taking online orders for MBIEV. DYOD!
Fidelity: MBIEV is shown, but not allowing orders, no B/A – gave it a try run.
Per the norm for lesser names… it started on the grey market which means for your protection all professionals get first shot at it before the peasants are allowed in. Until it moves to the pink we are locked out in most cases.
Ally allows me to enter an order but it just sits doing nothing. Once on the pink it actually works. Even calling in does nothing for me.
https://www.otcmarkets.com/stock/MBIEV/overview
what is MBIEV?
MJ,
MBIEV is the temp symbol for the new MBIN preferred. It’s permanent ticker will be MBINL. It’s a 7.625% coupon.
Here’s the details, provided by Tim:
https://innovativeincomeinvestor.com/merchants-bancorp-prices-new-large-preferred-offering/
Same for Schwab. Click on all or none, each trade gets a $7 commission.
Replying to my own message. Fido will not trade MBIEV. Spent an hour on the phone ; talked to numerous reps. Each had a different xplain. None made any sense. UGG!
SACH had a bad quarterly result and its baby bonds are tumbling. SACC due 12/30/24 is off four cents, with an IRR over 11% at a price of 25.11.
The others SCCC, SCCD, SCCE, SCCF, SCCG are all off by larger amounts. They are down between 16 and 91 cents. SCCE is particularly hard hit. At 21.32, its IRR is 13.79%. This may be a danger or an opportunity. DYODD.
Disclosure: I bought about a 1/3 position in SCCE.
Issue, Price, IRR%, Maturity
SACC,25.11,11.09,12/30/2024
SCCC,24.66,10.65,9/30/2025
SCCD,22.18,12.59,12/30/2026
SCCE,21.32,13.79,3/30/2027
SCCF,22.20,12.64,6/30/2027
SCCG,23.15,11.50,9/30/2027
SCCC caught my eye because the due date is under a year. Can SACH hold on that long? The sellers know this and are selling anyway. I’ve avoided SACH preferreds. Guess I won’t start now.
There are other companies with weak charts for the common and short maturity BBs, such as RC. I’m avoiding them also because this is my simple-minded form of DD. There are lots and lots of prefs/babies from financial companies with strong charts. Advice from an old song: You Better Shop Around. https://www.youtube.com/watch?v=dA5509mcQd8
Another take on the situation from another old song – This one is about a woman named Sachem…. you may know Percy’s version but this is done by the original songwriter at the Kerrville TX Folk Festival…. Son, take time to know her…… https://www.youtube.com/watch?v=b8Dpq15YQy4&ab_channel=Release-Topic
@ SACH attack
I dumped my SCCD after listening to 2WRs song. I swapped it for;
HFRO-A
OPP-B
ECC-D
I’m trying not to screw around with credit quality anymore. When spreads loosen up I may be more aggressive. I’m playing some defense to hold on to that 4th quarter lead into 2025.
Ex-banker here
SACH
Danger….
“Unsecured unsubordinated notes in the amount of $34.5 million are due and payable by December 30, 2024. The Company plans to repay these notes with a combination of current cash on hand, principal repayments from mortgage loans, its lines of credit, and the sale of mortgage loans.”
9/30/24 Cash $5.9 million
Bankruptcy…Spirit Airlines officially got its wings clipped today.
SQFT-P 10Q Blues
Ruh roh raggy
Could be a nothingburger but I’m glad to be down to holding 14 shares from 1114 shares.
“The Registrant has been unable, without unreasonable effort or expense, to timely compile all information for the financial statements and related disclosures required to be included in its Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2024. The Registrant expects to file the Quarterly Report on or before November 19, 2024.”
MBINL incoming…
MBINO potential redemption…
https://www.sec.gov/Archives/edgar/data/1629019/000110465924119981/tm2425445-1_424b5.htm
Yep. To make it explicit, in the Use of Proceeds section:
> We intend to use the net proceeds of this offering of depositary shares for the redemption of the Series B preferred stock and for general corporate purposes including to support balance sheet growth of Merchants Bank.
(Series B is MBINO)
Pricing talk 7.875 area…likely 7.50 final would be my guess…?
I think 775
9.2 mil shares priced 7.625..
Thanks Jerrymac!!
7 5/8…..
Good take awhile before it’s buyable in secondary. Not that many here should bother. I call these asbestos glove deals.
Can you elaborate on the “asbestos glove deals” moniker?
I am guessing it has something to do with the yield being diminished in the secondary markets and it being a fairly risk issue with that high of a coupon rate?
Another floater bites the dust. Have 3yrs before MBINM can be called.
Their few issues have done pretty good. And mbino solid even with news….. . They are thinly traded and should be regarded as such
If L will be priced at 7.5-7.75 then N should be selling at 20?. If anyone has N might be a good time to sell. N about 22.30’s at this time.
good comment..mbinn/pff pair has gone from 2 sigma cheap in may 2023 to over 2sigma rich last month and near 3 year high .. currently near 1.5 sigma rich ..would look for for more underperformance
nice call!
bought MBINO cheap in the panic of 2023. Now I’ll have a tax bill. oh darn. Other regional bank issues sitting on profits too.
Martin, I wonder if rates hold or even go up over the next year if some of these bank preferred I hold will go down and I will lose some of the unrealized capital gains? Something to watch but holding for now because of the YOC I have.
J do you know if this will trade under a temp symbol or go straight to MBINL ?
Charles–previous issues traded under temp symbols
Just got notice from Fidelity that ATT’s BB (TBC) is being called.
Fidelity full of it again
Pickler,
Fido recently sent out a call notice on ETI – (the Entergy Texas 5.35% pfd). That was a mistake.
In light of that, I searched for news releases and filings (8-K and 10-Q) by T and found no announcement of a redemption of TBB.
MBG & Others Wacky Calls
I received notice of a Lumen call from FIDO. Called and waited 45 mins and two reps later that it was an ERROR. Is there database compromised?
Dunno
TBC – Jump to near par, maybe redeemed
Checked with AI Copilot, no indication this has been redeemed
I have a full position in this, if called hard to replace for my sock drawer.
Maybe just roll it over to TBB.
I can’t find any independent news about the potential redemption. TBC is up 2.45% in an otherwise down market. I’d also find it hard to replace.
try expert market ktba. 7% T bond due in 2095 trading at 22.75
Got the TBC Call notice from both Etrade and Fido for Dec 12
thanks. i had posted on this in sandbox
regular common share have consistently paid slightly less div (for several months, at least) than the coupon – I wonder if that has something to do with it. Doesn’t that mean they could sell treasury shares and use them to pay off the bond since the cost of equity is less than the cost of debt? I’m long and up on the common share under the, perhaps mistaken, assumption that there is a do-right / pride element in restoring the dividend, kinda like how it played out with ET.
Jbosch,
I was taught in Finance class that equity is always more costly than debt.
Of course, that tenured professor kept a bottle in his desk and always smelled of alcohol
watching closely for the last couple years makes me think that debt is only cheaper when it is cheaper. there are a lot of beat up stocks out there. I don’t mind holding mag 7, but it’s not amenable to the valuation techniques of yore.
Additionally, the Zions board of directors has authorized the following capital actions:
Full redemption of its Series G Preferred Stock (CUSIP: 989701859) at a redemption price equal to $1,000 per share (equivalent to $25 per depositary share), plus any declared and unpaid dividends, without accumulation of any undeclared dividends;
Full redemption of its Series I Preferred Stock (CUSIP: 989701BD8) at a redemption price equal to $1,000 per share, plus any declared and unpaid dividends, without accumulation of any undeclared dividends;
Full redemption of its Series J Preferred Stock (CUSIP: 989701BF3) at a redemption price equal to $1,000 per share, plus any declared and unpaid dividends, without accumulation of any undeclared dividends; and
Full redemption of $87,890,550 aggregate principal amount of 6.95% Fixed-to-Floating Rate Subordinated Notes due September 15, 2028 (CUSIP: 989701818) at a redemption price equal to the principal amount being redeemed plus any accrued interest.
https://www.prnewswire.com/news-releases/zions-bancorporation-prices-public-offering-of-subordinated-notes-and-announces-additional-capital-actions-302306461.html
wow, the ZIONO was at 26.72 closing
Westie now another worry. We need to look and see which holdings have early call dates.
I’d been selling the O, but not all positions. Play games and sometimes you’re skewered by the bull!
Wow, they took a hatchet to their preferred stack. Can’t remember a time when a company has called four different series at once. The most I can remember is when ET called three series.
So annoying that they’re replacing these with a private placement.
The deal was a 1000 pfd, upper 6’s. The float was so low I’d hate to buy it, knowingly.
Upper 6s is reasonable for BB+ qualified preferred but yeah, I noticed that floating rate was pretty low. That said, the 280 bps spread is in line with current market pricing. There are barely any BB+ rated preferreds that currently yield 280 bps more than their respective Treasury rate.
I’d been milking that issue overtime. Two issues at play 1. Rates maybe heading higher, so refi now. AND 2. common bank stocks rallying has given the banks some cache with the street. Breathing too. Off the coals so to speak. They don’t have to pay BDC spreads.
Wow–thanks for the info J
I rarely pay over par because of this risk, but I’ve never seen it actually happen.
Issues over par can be a bargain because price is suppressed by call risk. I have some floaters at or near 26 and I banked some of the profit. Hard to let go of the rest the divvy is too high.
One thing I do is go with the one with the series with the second highest call risk figuring the one yielding a bit more will get called first. But that strategy doesn’t work when they call all their series at once.
EQC and EQC-D
A non event for EQC-D based on its current price but it will be called most likely on Dec 4, given accumulated will be thru 12/3 https://ir.eqcre.com/press-releases/news-details/2024/Equity-Commonwealth-Announces-Voting-Results-of-Special-Shareholder-Meeting-and-Payment-of-Liquidation-Preference-for-Series-D-Preferred-Shares/default.aspx
EQC common’s initial Cash Liquidation Distribution will be $19 on Dec 6 and raised guidance for total distribution to be in range of $20-21 – https://ir.eqcre.com/press-releases/news-details/2024/Equity-Commonwealth-Declares-Initial-Cash-Liquidating-Distribution-of-19.00-Per-Common-Share-and-Announces-Ex-Dividend-Date/default.aspx
Liquidating payments present the same problems in IRAs as payments from MLPs. Just be aware.
Mark
I assume that would only impact the common shareholder, not the D holder, right?
Hi 2whiteroses,
That’s a good question. I used to fish a lot in these ponds. It clearly applies to the common. Don’t know about the preferred shares. I never purchased any in a liquidation. Perhaps one of the CPAs on the board could chime in?
Mark
New JPM Bond… too conservative for most on this site….”extended” 5-Year call protection, annual payment
* 48130CUK9
* Senior, A-/A1 rating
* 5.125% Coupon
* Price 99.7
* YTC – 11/14/29, 5.189%
* YTM – 11/14/34, 5.189%
Another LNG shipper preferred shares alert from your humble narrator: Seapeak LLC (SEAL-A, SEAL-B) filed its 3rd Quarter, 2024 6-K less than an hour ago:
https://www.sec.gov/Archives/edgar/data/1308106/000162828024047815/seapeak6-kq3x24doc.htm
My little buddy Claude tells me that:
_____
The company reported:
• Net income of $37.3M for Q3 2024
• Net income of $190.6M for the first nine months of 2024
While profits are lower compared to 2023 ($117.2M in Q3 2023 and $315.0M for first nine months of 2023), the company remains profitable with positive income from both its LNG and NGL segments.
The lower profitability in 2024 is partly due to unrealized losses on derivative instruments and changes in credit loss provisions, rather than fundamental business performance issues.
_____
Draw your own conclusions, of course. No current position in these shares, but I follow the company. I will note that the company has (for obvious reasons) curtailed its repurchases of the preferred shares, and that:
As at September 30, 2024, the remaining dollar value of Series A and Series B Preferred Units that may be repurchased under the plan was $23.3 million.
ESW3 I used to own it and still follow it. If I remember correctly the investment fund running it had to inject cash in the past year when they had some new ships drop down. I seem to remember the P.E group invests for the Canadian employee’s retirement fund and other retirement funds. This is just going from my hazy memory.
Thursday Midday data dump…
* Top 10 MMFs…hit all-time high of 7T in MMFs
1. GABXX – 4.71%
2. VMRXX – 4.66%
3. VMFXX – 4.64%
4. VUSXX – 4.62%
5. SWVXX – 4.54%
6. IDSXX – 4.52%
7. TSCXX – 4.51%
8. AMAXX – 4.51%
9. FZDXX – 4.46%
10. PRTXX – 4.42%
Loudest Barking Dogs of Dow Yields…
1. Verizon – 6.62%
2. Chevron – 4.35%
3. JNJ – 3.32%
4. Merck – 3.29%
5. Coca-Cola – 3.2%
CME Dec 18th Fed Rate Cut Probabilities…75% 25bp cut, 25% no cut
US Producer Price Index…UP
* PPI – increased from 1.9% to 2.4% (yoy)
* PPI Core – increased from 2.8% to 3.1% (yoy)
Social Security…
* House passes SOCIAL SECURITY FAIRNESS ACT which eliminates windfall elimination provision (WEP) that reduces benefits for individuals who receive state & local pensions. Senate expected to pass bill too. Impacts 3% or 2.1M SS beneficiaries who would benefit with a payment boost. Expected to add 196B to US debt over next decade.
Preferred Ups & Downs…
* FGFPP (+ $1.47), PRIF-I (+ $0.48)
* CUBB (- $0.71), SACH-A (-$0.71)
Other…
* USD – 52 week high, $106.66
* Gold at 2 month low
* US initial jobless claims at 6 month low
* NYT – cheap flights ??.. “Airlines hate Skip-Lagging, he helps them pull it off”…legal supposedly, but airlines say no & fighting back with suits & bans.
Höegh LNG Partners LP Announces Availability of Its Interim Financial Statements for the Quarterly Period Ended September 30, 2024
11/13/2024
HAMILTON, Bermuda, November 13, 2024 – Höegh LNG Partners LP (the “Partnership”) announced today that its Interim Financial Statements for the Quarterly Period Ended September 30, 2024, are available on the Partnership’s web site.
https://www.hoeghlngpartners.com/announcements-and-press-releases/press-release-details/2024/Hegh-LNG-Partners-LP-Announces-Availability-of-Its-Interim-Financial-Statements-for-the-Quarterly-Period-Ended-September-30-2024/default.aspx
Direct link to Q3 2024 financials:
https://s22.q4cdn.com/766559106/files/doc_financials/2024/q3/24_Q3_HMLP_USGAAP_Interim-Reporting_v15-0.pdf
_____
14. Subsequent events
…
On November 15, 2024, the Partnership will pay a distribution of $3.9 million, or $0.546875 per Series A preferred unit, for the period commencing on August 15, 2024, to November 15, 2024.
On November 15, 2024, the Partnership will pay a distribution to Höegh Evi of $52.0 million, or $1.6 per common unit, for the third quarter of 2024.
_____
Note name change of parent in September:
References in these financial statements to “Höegh Evi” refer, depending on
the context, to Höegh Evi Ltd. (previously named Höegh LNG Holdings Ltd.) …
Thanks. Much appreciated.
Bloomberg…
Templeton’s Call for 5% (10yr) Treasury Yields Matches JPMorgan, T. Rowe.
prob means it doesn’t happen?
10yr T Yield & other data today…
* Popping again…up 12bp to 4.43%, will 4.5% get tested this week?
* US Debt Clock…soon to rollover to 36T, currently at 35.993T
* Actual Fed Spending…7.2T
* Actual Fed Tax Revenue…5.0T
* Actual Fed Budget Deficit… 2.2T
* US Debt per Taxpayer…$272,821
* US Debt per Citizen…$106,582
* Tax Cuts & Tarriffs on the horizon…impact TBD
* $1 of $5 tax revenue dollars (20%) being used to pay interest on US debt
* Maybe we need 5+% on 10yr to compensate for future US debt risk??
This eve- 10YR hit 4.483 – jumpin’ & jivin’ – should be interesting in the am.
Oak A and B both are now at 7% yields
good comment….oak.pra and b/pgx pairs are trading near fair value (3yr horizon..over last year pairs have traded between 1 sigma rich and 2 sigma cheap
Carecloud (CCLDP)
Carecloud announced Q3 results today.
Plans to resume dividends on preferred series A and B from March 15 2025!
(DJ global press release)
They were suspended from february 2024 on.
Missed my opportunity yesterday. CCLDP up 30% this morning.
Good catch Marcel
Are they paying the dividends in arrears also? I couldn’t find that explicitly spelled out in the press release.
Nothing about paying the dividends in arrears. Looks like the ole well start paying the current obligation before the typical clause in many preferred kicks in around board seats to represent preferred shareholders. This kicks in after so many consecutive distributions not being paid on time.
They actually had some time to wait. Both have identical language.
https://www.sec.gov/Archives/edgar/data/1582982/000149315222002666/form424b5.htm
” Holders of the Series B Preferred Stock generally will have no voting rights except for limited voting rights if dividends payable on the outstanding Series B Preferred Stock are in arrears for eighteen or more consecutive or non-consecutive monthly dividend periods”.
For anyone not following closely, they had also already declared the dividends (which they didn’t pay) before changing course and suspending it.
Some institution just dumped 1.7 million shares of PFF.
Or was it someone here? LOL.
Rock,
Here is something to read. Deals a lot with what has been talked about on here.
https://seekingalpha.com/article/4729081-the-unstoppable-rally-creates-a-broken-market-where-no-one-is-watching
I may have made a mistake, but last week I sold all our shares of ALL PB at 26.30
Was hard for me to let go, especially as I feel with all the losses from claim payouts they have had recently it would not be easy to raise funds to call this issue, but of course they could do a private placement or issue a bond.
Thanks, Charles. I’ll check that out when I have some time later today.
He is definitely a trader. I think he is looking out 3 to 6 months and is seeing rates decline. After that he could change direction. Who knows, my crystal ball is cloudy.
His comment about BDC’s all chasing the same investments and taking on higher credit risk because of the competition to maintain the high yields they payout sounds similar to what I have read from reading other articles.
All the other stuff I read about the different levels they invest in, leverage, non payment, getting paid in PIK makes me wonder what a minimum of 200% asset coverage and a BBB- credit rating really mean.
Westie’s comment yesterday about what is worth investing in and the % interest spread compared to T-bills the writer makes the same point. This brings into the equation the interest spread between utes and T-bills.
I think the point he was getting and I have strayed from one of my rules is when the music stops will there be enough chairs for everyone to sit down? the market depends on the seller finding a willing buyer who will pay more for something than he did.
What I don’t understand is why he would short PFF but be long TLT. Seems like they’ve been going in the same general direction. If he thinks rates will come down, both would do okay and vice-versa.
Hi Rocky – He is basically betting that the spread component of preferreds are expensive. If you bear with me, fixed income is generally broken down into two large factors: duration and spread risk. Duration provides exposure to treasury rates and spread is the additional compensation for default and liquidity risk. So by going long TLT, he is gaining access to duration (changes in treasury rates) and by shorting PFF, he is shorting duration AND pref spreads, with a net result of only being short pref spreads. Credit spreads in general are near all time lows, so this trade makes a lot of sense. As spreads go lower and lower, your upside potential diminishes.
Yes, totally understand. And if rates rise, and they currently are, he’s going to be a big loser on both trades. That’s my point.
they haven’t been going in the same direction, that’s the trade.
good comment.. pff/tlt pair has seen pff outperform since march 2020.. it has traded a fairly well defined uptrend and currently near fair value.. was 2 sigma cheap in september ..we are long way from all time time set in june 2007 but closer to double top set in 2010 and 2011
MS Bond – probably way too conservative of an offering for most on this site
Morgan Stanley
* 61766YWB3
* A-/A1, Senior
* 5% Coupon, Fixed, Semi-annual
* Price 98.7
* 1st Call 11/7/29…YTC 5.162%
* Maturity 11/7/34…YTM 5.162%
Newbie
Lets see if I’ve got this straight:
10 yr A- bond yielding 5.162 with a call option at 5 years
Treasury security with no call option is currently 4.32, GSE at 5.0% (FIDO secondary prices)
That’s an 84 pt spread over “riskless” minus the cost of the call.
Does today’s market make any sense?
Regarding USB-A:
On Sept. 14, 2024, 2Whiteroses wrote that USB-A is floating at “SOFR +.26+1.02.. A regular quarterly dividend of $1,682.317 per share (equivalent to $16.823170 per depositary share” so the coupon would be 6.729% at $1,000/share.
At a current price of about $870, the current yield would be about 7.73%. However, the FFR dropped 0.5% on Sept. 18 and 0.25% yesterday, and these have dropped SOFR to about 4.5% since the last dividend declaration of USB-A. From this, it seems that the new rate will be about 4.5% + 0.26% + 1.02% = 5.78% at $1,000/share = $14.45/quarter = 6.64% at $870/share.
I’ve held USB-A for a couple of years, but I’m thinking of selling some to average down at a lower future price.
Goin2… The rate $16.82 was paid on 10/15. The rate for the current period is based on 10/14 SOFR, 4.59% or about $15.17 (interpolated so not precise). Actual should be announced around 12/12.
The current yield at $870 is 6.97%. This rate is quite high vs BBB fixed pfds and compared to floating USB-H at estimated 6.34%. It seems like the price should increase.
Thanks th-nc. Still the dividend amount is a sizeable drop from the last quarter followed by another drop for the next quarter. I hope you’re right about the price increasing. I still plan to trim my shares a little. The optimism priced into the current market is a little too much for this pessimist. I’ll put the proceeds into some AA+ agency bonds at about 6% knowing that they will be called sometime next year.
tks for headsup…just paid 866
Bloomberg News
FYI
PSEC common divvy cut 25%. Nobody saw that coming?
NWGG-
I was surprised to see that PSEC had been paying the same 60 cent dividend since 2017. The company has issued a ton of senior debt
Rock, a ton is an understatement. I am not going to waste my time counting how much debt they have called to subtract from all the issues but FINRA lists 1,377 separate bonds including ones that have been already called. That’s a lot for a company with a 2.26 B market cap.
Compare that to Realty Income Corp with a 49.50 B market cap that FINRA shows has issued a total of 42 bonds including ones already called.
I have read a little about Prospect over the years and received the impression management has enriched themselves with other peoples money.
Prospect Capitol runs Priority Income fund. If I was the board of directors I would be looking for another management firm.
“If I was the board of directors I would be looking for another management firm.”
PRIF would be better off literally with you on the BOD. Instead they have the President of PSEC as their Chair and CEO.
Good one sir!
While I agree that O is higher quality than PSEC your analysis of the number of debt issues makes no sense. I know many companies that went bankrupt with a handful of bonds and many companies that are strong with hundreds of issues. Many of PSEC issues were very small retail bonds. Your comparison also makes borrowers that issue serial maturity bonds look riskier than those who issue a single maturity and it is mostly the other way around if you look at refinancing risk.
I had my first experience with PSEC 10 to 12 yrs ago when I learned what happens when a company relies on an ATM program. One of my first losses chasing yield. The great thing about the internet is reading about other peoples experiences. I read so many comments about not just this company but others that people have invested in where their investment over time has broken even. Between dividend cuts, share price erosion from the cuts and every time the stock price dropped because the company is a serial issuer of more stock.
I know this has nothing to do with the discussion about bonds except my view on how safe an investment they are is on how they do business. How the public perceives risk is reflected in the price of a company’s stock. PSEC common is under $5.00 a share and the PSEC-A is yielding over 7%
As for their bonds, I think this is the one time investors have too much confidence in their safety and they are mis-priced as to risk.
Schwab believes that SCE-H has been called effective 11/28/24, but I can’t find a press release or other confirmation. Can anyone confirm or deny?
Answering my own question, here’s the press release: https://www.businesswire.com/news/beverlyhillschamber/20241029453225/en#:~:text=Southern%20California%20Edison%20Announces%20Redemption,Floating%20Rate%20Trust%20Preference%20Securities
OLD GREENWICH, Conn., November 6, 2024—Ellington Financial Inc. (NYSE: EFC) (the “Company”) today announced that its Board of Directors has authorized the redemption of all 957,133 outstanding shares of its Series E Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (the “Series E Preferred Stock”) (NYSE: EFC PRE).
https://www.sec.gov/ix?doc=/Archives/edgar/data/1411342/000141134224000106/efc-20241106.htm
Thanks J
PREJF is at $15.70 if anyone is interested. That yield is pretty stout for a BBB rated issue. I bought some today.
what happened on July 22 (which is far back as my data goes ) price went 14.51 low to close at 17.13?
It went to the pink sheets that day. I own all the trades at 14.51…maybe was 300 shares there
Schwab charges a commission on Pink Sheet trades ;i found out to my dismay;
i have an account with Wells Fargo Inv Advisors who do not .
Yeah, I hate Schwab in every way imaginable. I have one of my accounts there only because they bought TD and I have TOS feeding several spreadsheets I use regularly.
Scott I have an account there also. Hadn’t really looked to see, what is the commission they charge on pinks?
$6.95, unless you call and negotiate a lower price. I did it years ago and it was easy peasy. But that was with TDA, so I can’t actually speak to that anymore. Schwab does honor my old TDA renegotiated price though.
NWGG…… I had owned PSEC common since2012. A couple of months ago I sold it all as the house of cards got too great for me. Lucky I got out when I did because it is now worth 75 cents less per share than when I bailed. I got a ton of cash over those years in dividends and made out fine. Good riddance though!
@ DJ & Others
PSEC PSEC-A SQFT-P PRIF-K PRIF-D LTSAP ECC-D
**Hopefully this story can help a fellow III’er out.**
There was this talk a few weeks ago about payment in kind baloney on Bloomberg with PSEC. When I heard that, I smelled fire. 2WR has pounded the table on Priority that he never liked em’. I decided to take his word this time more seriously too.
It was also pointed out by another III’er that Priority Income Fund has PSEC money managers. This is 100% true as I looked it up and also mentioned it on III as well.
I went into the interest rate hikes driving those two pieces of junk till the wheels fell off (PSEC-A & PRIF-K). Once the game was up, I ended swapping PRIF-K for ECC-D. I sold PSEC-A at a loss, but can’t remember what I swapped it for exactly. I think I just replaced it with low teens IG paper which all went up. Everything was pretty bombed out so it was easy to find a sub. PSEC-A also kept going down farther and faster than I liked it to and it was really annoying me.
Another dumpster fire waiting to happen possibly is SQFT-P. This was a great holding in ZIRP, but now…not so much. I wrote about this as well on III. I swapped 1100 shs of SQFT-P for LTSAP. LTSAP has already went to $17 from the $15.5 avg price I bought it at originally. I didn’t mention that I was going into LTSAP on purpose to III because I didn’t want to be front run!
Don’t get me wrong as I am no genius. There was a lot of wrenching to decide to bail or stay. In the end I am happy that I did. I do have 10 shs of SQFT-P still. I actually bought a VERY small position in PRIF-D a few week after Tim mentioned it too.
Fidelity is loaded with PSEC paper. I bought some of their notes a few years back with no problems. To be fair PSEC-A or PRIF-K or SQFT-P did not miss a dividend when I owned them.
So basically I was able to get out the car before it went over the cliff. I have paper losses, but still actually control slightly more shares or a higher face. It did cost a small amount of yield as SQFT-P was about a point larger than LTSAP. ECC-D also has a .25% lower yield than PRIF-K.
DYODD YMMV
NWGG, I hold a few I haven’t mentioned on here as I was trying to do the same and accumulate a position. One I was pursuing was just mentioned recently WSBCP doesn’t matter now that someone else has mentioned it first.
LTSAP is expert market and a complete black box
https://www.otcmarkets.com/stock/LTSAP/overview
https://osaic.com/articles/osaic-contends-with-bumps-and-bruises-on-consolidation-journey
Securities and investment advisory services are offered through the firms: Osaic Wealth, Inc., Osaic Institutions, Inc., Osaic FA, Inc., and Osaic FS, Inc. broker-dealers, registered investment advisers, and members of FINRA and SIPC. Securities are offered through Ladenburg Thalmann & Co., broker-dealer and member of FINRA and SIPC. Advisory services are offered through Arbor Point Advisors, LLC, Ladenburg Thalmann Asset Management, Inc., and Osaic Advisory Services, LLC., registered investment advisers. Advisory programs offered by Osaic Wealth, Inc. are sponsored by VISION2020 Wealth Management Corp., an affiliated registered investment adviser. 6192409
https://www.reverencecapital.com/milestones
More research to consider.
https://whitesecuritieslaw.com/osaic-wealth/
In the rush to buy up other companies I don’t think they have or had a program in place to verify the credentials and backgrounds of people working at these other companies.
This was the issue with B Of A accruing Country Wide
————————————–
Disclosue, I only hold the BB, LTSH & LTSK and only in my accounts, not my wife’s
@Justin LTSAP
You can buy the Landenberg stuff on Fidelity right now. Schwabby not so much and a nice OTC surcharge to boot to sell.
We have gone round and round with Landenberg on this site. I had a GTC order that was honored after the lockout. Somebody said I was full of BS and put the confirm # on this site to show otherwise when it executed.
I have done well with the LT stuff so no complaints here so far.
Mortgage News Daily…mortgage rates popping today
* 30yr Jumbo – 7.25%
* 30yr Fixed – 7.13%
* 7/6 SOFR ARM – 7.0%
* 15yr Fixed – 6.55%
Newbie –
If the trend continues, we should see an 8% mortgage rate on Trump Inauguration Day!
I’m aggressively shorting the homebuilders. These companies will continue to pay upfront points to buy down mortgage rates for their buyers, and their margins will get hit hard.
Please DYODD.
Midday Markets…
* 10yr T yield — up 15bp to 4.44%
* DJIA — up 3.2%
* S&P — up 2.1%
* NASQ — up 2.4%