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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.
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.
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%
GS 6.125% $1k preferred trading below par.
https://www.finra.org/finra-data/fixed-income/trade-history?cusip=38141GB52&bondType=CA
Some 6% prints in illiquid land today. UEPEP ask 75.50 = 6.04%
SPMCV is trading. I had to call the trading desk at Schwab and got a fill for 575 shares at $24.60. Caution: Use ALL OR NONE, as each fill on Schwab, no matter how many, each carry $6.95 OTCBB commission until the symbol finalizes as SPMA, so use ALL OR NONE.
Additionally, if you get an error message while trying to trade SPMCV, “closing transactions only” , this means it is coded for expert market. This ends up happening because most OTCBB preferreds are indeed expert market only, but in this case the IPO starts on OTCBB. So, I had to call Schwab to explain until they finally understood, that expert market preferreds are locked because the parent company is no longer a reporting company, BUT, the parent or common here is SPMC that is A REPORTING ENTITY that is a PUBLICLY TRADED CEF. and that MOREOVER, since SPMCV is the preferred of a CEF, in the prospectus it makes it clear that the preferred is subject to a 200% asset coverage ratio, offering more safety than many preferreds. With this info and satisfied that it is a preferred of a REPORTING ENTITY, they placed the trade for me, but once again, using ALL OR NONE to spare me from possible multiple OTCBB commissions. And again, it took less than 10 minutes to fill all at once for 575 shares at $24.60.
Now that’s confidence in a less than 5 mo old nano-cap CEF ( ~$338m).
cefconnect knows almost nothing about them.
Best of luck.
Gary –
No worries! “Rock solid” investment bank RILY put a $22.50 target on SPMC. The IPO for this CLO equity CEF was at $20 five months ago.
As we all know these higher yield (14%) CEFs often pay out more than they take in, especially at the beginning of their existence. Only a firm as awful as RILY would imply that the price of this CEF should trade 12.5% above its IPO price. This is a CEF that invests in CLO equity that is adding $50M in leverage (from the 8% preferred) with credit spreads at their lowest levels in a decade. Likely one of the worst times ever to buy CLO equity.
Of course, RILY was also one of the lead underwriters on the preferred and put the BUY rating out on the CEF two weeks before the preferred deal. My guess is RILY did its usual thing and tried to dump these preferred shares on its remaining wealth management clients (Stifel just bought a portion of RILY’s wealth management biz)- the same marks/chump clients that loaded up on the RILY baby bonds that now trade at 40-50 cents on the dollar.
“-B. Riley Initiates Sound Point Meridian Capital at Buy With $22.50 Price Target
06:27:46 AM ET, 10/09/2024 – MT Newswires”
Ha! Good one.
Papa Doc –
See my reply to Gary. above As per your post about B Riley being a bookrunner for Sound Point: B Riley also was a bookrunner on recent preferred IPOs OCCIM and EIIA, and a lot of others. Just because B Riley promoted Sound Point and was one of their several bookrunners, does not necessarily mean that Sound Point is partners in crime with B Riley. Nor can you say that just because B Riley recommends them, they must be a bad investment Peace
Gary – That $338 million will soon rise and is already 2.2X that of OCCI, who similarly invests in CLOs, just as one comparison to one of many micro CLO CEFs. If you read the investor presentation, Sound Point was started in 2008 and yes, went public 5 months ago. They invest in 1,595 CLOs to make for an extremely diversified portfolio, with the largest single obligor exposure at less than 1%, or .61%. The CLO Managers they use are: KKR, Ares, Carlyle, Benefit Street, AGL, and others. Sound Point is much more diversiofied than most CLO investors. You can easily bring up the schedule of investments/CLOs on Edgar. Just because cefconnect has not gone on Edgar and uploaded the freely available schedule of holdings does not mean that cefcoonnect “knows nothing about them” . Again, this preferred of a CEF is subject to 200% asset coverage ratio per the prospectus. Peace.
Fan59
Ok- good info- something to mull over. Still, pretty small.
I don’t think I’ve ever not made money by getting in early on preferred CEF IPOs with 200% coverage. I’ve bought bigger for SPMCP initially, to make a flip between $24.6 and $25 for some, and plan to keep at least 200. I do agree that the common of SPMC could be subject to share erosion via excess return of capital , and this I have no interest in the common at this time, but the Preferred looks even safer than the term preferreds issued by OCCII, with 200% asset coverage requirement, these should be less volatile than most oreferreds. DYODD
AILLN ask 82, 5.98%
Thank you Rock. I had some money in new divs that needed a home. Buying AILLN keeps me away from riskier choices that my addled brain might dwell on long enough to purchase.
Now there’s AILIM at 5.9873% at ask.
IVR-B redemption 12/27
https://finance.yahoo.com/news/invesco-mortgage-capital-inc-announces-130000069.html
Thanks Ken–slated to go floating on the redemption date.
Ken –
There is a publication I follow that did a deep dive this morning into the IVR-B redemption (if anyone is interested). Here it is:
“This morning a call was announced by Invesco Mortgage Capital (IVR) for their fixed-to-floating share: IVR-B (IVR.PR.B). This is the first among the preferred shares we’re covering, but more calls may follow in the next few months and certainly in 2025.
Shares of IVR-B will be called effective 12/27/2024, which is the first day they could be called. IVR-B had a spread of 5.18% over 3-month LIBOR (which is defined as 3-month SOFR + 0.26161%). That’s only slightly higher than some of the shares from Annaly Capital Management (NLY) and AGNC Investment Corp. (AGNC).
I’m a bit surprised about IVR-B being the first call, given that shares would have had only a slightly higher spread than peers with better coverage metrics.
I’m projecting the total remaining cash payouts to be about $25.00 + $.484375 for dividends. Yesterday shares closed at $24.88. Therefore, I’m projecting buyers at that price (which probably won’t be available this morning) would have a yield to call of about 18% and a worst-cash-to-call of $.604.
IVR-B was in our “overpriced” category because the IVR preferred shares have dramatically less coverage than the AGNC or NLY preferred shares and only a tiny bit higher yield.
Investors would probably be interested in bidding below about $25.10. That would give them an annualized yield to call of about 11.25%.
By $25.20, I would favor taking the cash. That’s an 8.2% annualized yield to call.
By $25.30, I believe investors should absolutely take the money and run. That would put the annualized yield to call around 5.22%.
Note: Investors sitting on a short-term capital gain that would become a long-term capital gain by holding until 12/27/2024 would almost certainly want to sit on their hands and wait for the call. This is not tax advice.
When a call like this is announced, the company is not actually legally forced to execute the call as announced. It is still possible for them to back out. Consequently, investors should demand yields higher than bond yields. This was seen during the pandemic. MFA Financial (MFA) had announced a call shortly prior to the pandemic, but backed out of it to protect their common shareholders. At that point, MFA simply couldn’t afford to give up that cash. That’s part of why investors should still see some risk here.
At the $25.25 bid, the yield to call is 6.7% (assuming I’m right on the cash flows). That’s a pretty good bid.
If investors can get higher prices, as we’ve seen on all executions so far, the yield actually goes lower. Therefore, I believe investors who own these share should be playing with limit-sell orders to take their gains and walk away. Especially if they are able to get someone to pay $25.30 or above. The 5.22% yield to call is only slightly better than what the investor gets for sitting in Treasury bills.
Given the way people are with round numbers, I would be more inclined to fish for buyers at $25.29 than $25.30.
Congratulations to any investors still holding these shares. They’ve achieved the rare case of a call being announced while shares are still trading at a slight discount to call value. Why isn’t IVR just repurchasing all these shares? Low liquidity.
One last note. This may have a negative impact on prices for other shares with a negative yield-to-call. Since many of those shares had superior spreads for lower risk, this call may make investors wary of the risk that their shares could also be called.”
WEST READING, Pa.–(BUSINESS WIRE)– Customers Bancorp, Inc.(CUBI) announced that the Board of Directors has declared a quarterly cash dividend on its Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series E of $0.65395191 per share. The dividend is payable on December 16, 2024, to shareholders of record on November 30, 2024.
The Board of Directors has also declared a quarterly cash dividend on its Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series F of $0.63006441 per share. The dividend is payable on December 16, 2024, to shareholders of record on November 30, 2024.
Newtek Business Services Corp. (Nasdaq: NEWT) announces a share repurchase program. Under the program, the company will repurchase up to 1,000,000 shares.
The repurchase program will be valid for 12 months.
Bryant Riley sent an e-mail to employees last night. He said that B. Riley is finally ready to go on offense. Looks like major buybacks of the baby bonds may be coming. https://www.sec.gov/Archives/edgar/data/1464790/000121390024093703/ea021979401ex99-1_briley.htm
When a CEO who made a major investment in (now bankrupt) Franchise Group (among other disastrous moves) writes: “We have demonstrated that the assets on our balance sheet are stronger than the market might suggest” it’s hard to ascribe any credibility to his statements.
Bryant will likely do current price or lower to ‘retire’ the baby bonds.
Also- it took a 25% haircut -again- this morning on the additional FRG $120m
impairment.
“Unfortunately, the investment was devastated by the precipitous decline in consumer spending in the markets served by the FRG brands, and the fallout and uncertainty from the Prophecy scandal and the related federal investigation into Brian Kahn. These headwinds changed the economics of the investment and the timetable for executing on FRG’s strategy, including the potential monetization of assets, in a way that could not have been anticipated.”
– FRG is closing its troubled furniture unit as part of its bankruptcy. Was this problem foreseeable or just the result of changing consumer preferences? The furniture problem at FRG was known and admitted before the acquisition. I recall FRG’s CEO admitting the unsold furniture problem was his fault. How could anyone doing Due Diligence miss a known issue? (Well okay, Big Lots couldn’t figure out furniture wasn’t selling either. )
– Riley claims to be unaware of / surprised by the Kahn legal issues. It didn’t take me long to find a local business journal, dated before the SEC news came out, reporting that Kahn was in private litigation with dissatisfied local investors. (It surprised me that a big CEO had an investment advisory side gig like that. ) IMHO, due diligence should have included 5 or 10 minutes on Google.
No gripes with B Riley, Kahn or Franchise Group personally. During my ownership period they did well by me. Its just that I have trouble believing their PR cover stories right now. JMO. DYODD.
KIM-N tender offer at $62. Any opinions?
https://investors.kimcorealty.com/news-events/press-releases/news-details/2024/Kimco-Realty-Announces-Commencement-of-Cash-Tender-Offer-to-Purchase-All-of-Its-Outstanding-Depositary-Shares-Representing-11000of-a-Share-of-7.25-Class-N-Cumulative-Convertible-PerpetualPreferred-Stock-and-Consent-Solicitation/default.aspx
Doesn’t matter Fred. No way to take advantage of this information.
I’m being locked out or restricted, whatever you want to call it by Fidelity.
15 min ago it showed 2 bids and now shows 200 plus. How is it you can have all these bids show up and Fidelity is blocking mine?
If this was a situation where there was limits on a sell and the market was telling you there is a large move to exit a position, I would hold Fidelity responsible for my losses.
That is the other side of the coin you might want to consider.
Charles M-
Strange- I have a small amount bot 7/2020 for 32.60 cost and no problem selling or attempting a buy. It is concerning that it seems hit & miss on orders.
Think I’ll hang-on for now– that 64.98 conversion price sounds good & doable.
I am just doing some napkin math and 62 is not that appealing. 64 would be more interesting as that would be the forced conversion value. At 62 that is a yield of 5.85% for a preferred I have to pay zero attention to. I think I would want closer to PSA preferred pricing. Not exactly what they sell for currently but slightly above to make me jump at it. Thus 64 would get me right into that ball park and also make me content that I got the full conversion value if I was forced down that path and immediately sold.
If I accepted the tender offer I would want a REIT replacement that is BBB or better with the same or higher current yield. Not exactly easy right now. FRT and PSA come to mind for me as possible replacements.
Fred, just my humble opinion on most of the these tender offers, good for the company, so probably not the best for the investor. There are times where I have taken it, but for this one I don’t think I will.
If you read the whole press release, they are taking a carrot and stick approach, where if you don’t take the $62 tender they will try to make the issue callable @ $60.34. I can’t imagine why anyone would vote for that, but I also don’t know why they would propose it if they didn’t have the votes. Confusing.
Well good luck to them trying to change the terms. I imagine it would take 180 days OR longer for them to get that all organized. During that time we would likely get 2 or more dividends which is approx 1.80 or more and when you add 60.34 to it we would come out ahead anyway. I doubt they could swing that all in a short period of time. Not much of a stick. I will call their bluff.
Plus I do not have a 1000+ shares of this. So it is easier for me to just ignore it. Not a ton of money riding on this decision. I bought these shares as RPT-D when it was way below par which makes this a wonderful problem to have and discuss.
fc –
“I will call their bluff.”
Same here. KIM is clearly one of the best in class retail REITs, and I believe will eventually trade to $28.30 (KIM can force conversion of KIM-N if common stays at $28.30+ for 20/30 trading days.)
So with a conversion rate of 2.2963, I’ll tender if KIM offers $65 for KIM-N, with KIM common at $24.12 today.
I expect them to get very few tenders as of 12/4/24, and then a re-up of their offer to $64.
KIM’s veiled “threat” to change the rules and redeem it at $60.34 next year is laughable. Not even the dumbest of retail owners would vote for that.
I think I would have respected the company more if they just pulled a Blackstone and threatened to delist it (I’m sure they checked on this and are prevented from doing so while the company is publicly traded).
Here’s the KIM-N tender document:
https://reorgdocumentlibrary.broadridge.com/Client/Client?data=1124/E49688/49446R687/c
To answer the question about why anyone would vote for the change to make it callable at $60.34, you have to do so in order to tender your shares. Kind of a Prisoner’s Dilemma situation. Has anyone seen a tender like this before?
Franchise Group–which you may remember had a management buyout financed in part by B. Riley (RILY)–declared bankruptcy last night.
RILY is writing down another $120MM on their investment.
GTLS.PRB is in an interesting situation after GTLS reported good results, stock now at $130ish, and it looks like that may continue going up. “QOL”- The conversion settlement rate will be 0.3526 shares per depositary share if the then current market price is equal to or greater than $141.81048 and 0.4231 shares per depositary share if the market price is equal to or less than $118.1754.
I may sell soon at near cap value, as I think there is a good chance these will cap. FYI if you hold here. Also, might look at GTLS – with backlog on these projects economic swings are just that and GTLS would come out of it (I think) better than most.
got my $55.50 today. Not sure why these are pricing up so high with the cap limit and the 7%. At the price now chase higher payers or the common.
Bond Vigilantes & 10yr T…???
* 10yr T yield up another 10bp on Friday to 4.386%
* 10yr T yield up 74bp since Sept FED rate cut
* Are the Bond Vigilantes beginning to finally protest (sell) as they foresee growing US debt (38.5T) & unchecked federal spending (>2T annual deficits) getting worse under the next US administration???
New $1k issue at Schwab from JPM. Highest recent coupon from A rated bank.
48130CUV5 5.75% 2044, call 11/14/2026 (2 years), pays annually (ugh!)
For benefit of all III’ers
@ Fido
6.125%
mat 11.4.54
FHLB
AA+
next call 2.4.25 (There is a schedule of dates for calls)
new issue
@par
cusip 3130B3KN2
Its like buying a 3 month CD. As Powell resumes his lowering of rates all these type will get called.
Top notch (Sarcasm) REIT OPI released earnings on 10/30. OPINL 6.375% senior notes maturing 6/23/2050 did not respond well, down 2.32 (-16.3%) to close at 11.87. Interesting comment in their earnings release:
**********************************************************
As of October 30, 2024, OPI’s total available liquidity was comprised of $146.4 million of cash. OPI’s $456.7 million of unsecured senior notes are due on February 1, 2025.
. . .
Given the limited resources available to OPI to obtain debt or equity to refinance this debt, the illiquid nature of real estate assets and OPI’s ability to incur additional debt while maintaining compliance with debt covenants, OPI has concluded that there is substantial doubt about its ability to continue as a going concern for at least one year.
*********************************************************
We have no positions long/short in any account.
Link to earnings release:
https://s22.q4cdn.com/479231927/files/doc_financials/2024/q3/OPI_09-30-24_Earnings-Presentation.pdf
10yr T – Post September Rate Cut
* 65bp increase
* 4.33% intraday high today
* 4.3% current
* US national debt now 35.8T with
federal deficits exceeding 2T annually.
Sometimes a company / investors can’t win: KIM reported today
Beat of FFO, Beat on revenue, raised guidance for ’24 FFO, and… raised the div 4.2%, So ?
Stock is down a little…huh? Must have been some really high expectations based on something, or nothing.
No, I didn’t read the report and don’t own the common.
RMPL- RiverNorth Cap and Income Pref redeemed this morning. Fidelity paid only $10.00 per share into account not the $25.00 face value. A call with them is pending.
i have the same issue with fidelity
let me know what they say
I am in the same boat!
well this is weird. My redemption for RMPL- disappeared from my activity log, and is now restored into my ‘Positions’ at 25.29.
Fidelity said they won’t trade the position for the cash until they have the cash in hand. He said it should be resolved by Tuesday AM. If not, give them ‘
another call.
Do other people want to call RiverNorth and ask them what happened to the payment? The number is 312-832-1440. Then press #1.
They told me yesterday it was sent out; now Fidelity says they didn’t receive it, and it’s unusual.
But a lawsuit wouldn’t be unusual in this situation.
James, if you have been on here for a while and followed comments this happens all the time. I am no expert, as I can’t remember the name of the transfer company but there is an intermediary these payments go through and it can take several days for this to happen.
Hi Charles–Yes, the payments go through DST, but Fidelity now says they don’t have the funds and that it’s unusual. RiverNorth told me they sent the funds, although the CUSIP number they had left off the final number. (76882B20 vs. Fidelity’s 76882B207.) For some reason, brokerage houses won’t pick up the phone and talk to anyone at any of these financial firms. RiverNorth said it hadn’t heard about the $10 vs. $25 payout mixup until I called, and they said I was the only one they’d heard from. So it might be worth it if someone else called to get clarification.
So no lawsuits yet? 🙂
Got the correct amount ($25 per share + accrued interest) into the Fidelity account today.
Same here. All resolved this morning.
Lawyer here. A lawsuit would be VERY unusual.
For one thing, your beef is with Fidelity, not the company.
And #2, about 5 seconds after you sue Fidelity, Fidelity gets the lawsuit dismissed because you agreed to arbitration.
This happens all the time and is usually resolved in a day or two, though occasionally these situations can go on for weeks.
Justin, can you tell this isn’t one of the things I get excited about? Funny I get more excited about someone trying to cut in front of me in rush hour traffic. Go figure.
Just sold all my wife’s SCE-PH in her IRA now to figure out what to replace it with.
well at least you got something….. no post at Schwab so far
RiverNorth confirmed it’s a $25 redemption. They have another new preferred that is a $10 redemption, so something must have gotten mixed up. They’re going to try and reach out to an intermediary that will contact Fidelity.
Called both Fidelity and Rivernorth. Fidelity confirmed the $10 redemption was a mistake. They said there will be a fix within the next few days. The redemption is $25.31, with accrued dividends.
After hours I did receive the corrected redemption amount of $25.00. However, no entry yet on the $0.31 per share.
Same. Mission almost accomplished. I should have sold this thing in September.
And in a mysterious position on RMPL- at Schwab…. No payment posted but position has disappeared from my Positions on website but shows as still there on TOS
Schwab renames things the day they get called, and lists it in the positions under “fixed income” by a number until it gets paid. But they’re getting slower and slower about posting redemptions-my Pxsap a few weeks ago took 2 days past the redemption date to finally get redeemed. Merrill also has not posted its redemption for Rmpl- yet.
It seems schwab will do anything to get to hold your money (and not pay interest on it) for a day (or 2 or 3).
Also seeing more and more dividends/interest payments being made at market close/just after market close, presumably for the same reason (so you can’t put them in a MM fund). They said a while back that they were changing their process to drop more divi’s during the trading day, but I don’t see very many.
I did speak with Fidelity this morning. The $10 per share is just a place holder put there by Fidelity. They have not received the redemption money from Rivernorth yet. When the money arrives, the ten bucks will be replaced with the correct payment.
The Fidelity rep I spoke with said it was a mistake. RiverNorth said it sent the full amount of money. Although as long as it comes through, it doesn’t really matter.
I am seeing that FIDO has corrected the redemption value of RMPL- after hours. ; )
Definitely a wtf moment this morning. Always glad folks here are alert and active.
Legend….
Agreed. Makes one wonder how in the world an error like this can occur at these huge firms. Who checks and verifies these transactions before they are finalized???