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READER INITIATED ALERTS

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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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1,847 thoughts on “READER INITIATED ALERTS”

    1. NOTE – It looks as though there is NO accrued to be had on any purchases after Feb 14. So all you’ll get is $25… MBINP closed at 25.44. so any sale above liquidation preference of $25 is a good one tomorrow.

      Dividends on the Series A Preferred Stock of $0.4375 per share that were declared and announced on February 14, 2024 will be paid separately on April 1, 2024. Accordingly, the redemption price of the Series A Preferred Stock will not include any accrued and unpaid dividends. On and after the redemption date, all dividends on the shares of Series A Preferred Stock will cease to accrue.

        1. I see that now……. They DECLARED the div on Feb 14 but sloppily didn’t mention the x-div date of 3/14 in their press release…. It sounded unusual as written but I’m still not all here… Thnx for clearing this up for all. I guess I’m not ready for prime time yet

    2. Seems logical that MBINO will be called also as it has a similar floating spread. Based on its closing price today of $24.62, call date of 10/1, 3 more div payments of $0.375, I calculate an internal rate of return of 10.76%. Not bad but no guarantee for a bank.

  1. New issue:

    TPG Inc. (NASDAQ: TPG)

    TPG Operating Group I, L.P. , TPG Operating Group III, L.P. ,TPG Holdings II Sub, L.P.

    Security:

    Fixed-Rate Junior Subordinated Notes Due 2064

    Announced Size:

    $200mm (8mm $25 par securities)

    Expected Ratings:

    Baa1 / BBB- / BBB- (Moody’s / S&P / Fitch)*

    Maturity:

    3/15/2064 (40NC5)

    Format:

    SEC Registered

    IPT:

    7.250% area, Fixed for Life

    Offering Price:

    $25.00

    Payment Dates:

    Quarterly in arrears on the 15th of March, June, September and December commencing on 6/15/2024

    Optional Deferral:

    The Issuer has the right on one or more occasions to defer the payment of interest on the notes for up to five consecutive years

    Redemption:

    Callable at the Issuer’s option:

    – In whole or in part, any time on or after 3/15/2029 at 100%

    – In whole but not in part, at any time within 90 days of a “rating agency event” at 102%

    – In whole but not in part, at any time within 120 days of a “tax redemption event” at 100%

    Use of Proceeds:

    Together with the net proceeds of the Issuer’s concurrent senior notes offering, to repay all or a portion of the outstanding debt under the Issuer’s senior unsecured revolving credit facility and senior unsecured term loan and for general corporate purposes.

    Marketing:

    https://www.netroadshow.com/nrs/home/#!/?show=155b0876

    DRD/QDI Eligible:

    No

    Expected Listing:

    NASDAQ

    Joint Bookrunners:

    MS (physical), BofA, UBS, WFS, GS

    Settlement:

    T+3, 3/04/2024**

    CUSIP / ISIN:

    872652102 / US8726521029

  2. Qurate is considered high risk but some investors like their 4th quarter report released today. They have been paying off debt.
    QRTEP preferred was up 12% this morning and still paying 16% dividend. An 8% preferred at 16% shows most still consider it risky.
    QVCC 6.5% note up 6% this morning and paying 10.8%. I hold some of the note.
    We’ll see where it goes from here.

  3. Is there any news on why ALLPRH was down $0.42 1.78%? I have a “strategy” of buying IG quality 30 days prior to ex-div so I was a happy buyer today as it was falling. ALLPRB the floater was up a penny, and the other two preferreds, I and J, were down about 0.57%. The common is up 0.42% so I am not worried but curious. I wonder if one of the EFTs have been re-allocating.

    1. ALLPRH/PFF pair has gone from 2 sigma cheap in september 23 to near 1.5 sigma rich early this month (1yr horizon) ..currently .5 sigma rich which is also where it is on 3yr horizon .. would expect continued underperformance

    2. ALL-H has a current yield of around 5.6%. CTA-B is available right now for around a 6.4% yield. Both are rated BBB by S&P. CTA-B is cumulative while ALL-H is non-cumulative.

      There are also several relatively safe utility preferreds available that are yielding 6%+. I’m not sure that there is a compelling reason right now to purchase ALL-H. It doesn’t look attractive relative to other preferreds available now.

  4. Watch out below!

    Corr Ch11 per Fido

    Prepackaged – PS get 11% of new company

    (other post stuck in moderation)

    1. DALLAS, Feb. 26, 2024 /PRNewswire/ — Ashford Hospitality Trust, Inc. (NYSE: AHT) (“Ashford Trust” or the “Company”) today provided an update on its previously announced plan to pay off its strategic financing which has a final maturity date in January 2026. This plan includes raising capital through a combination of asset sales, mortgage debt refinancings, and its non-traded preferred capital offering…

      https://www.prnewswire.com/news-releases/ashford-hospitality-trust-provides-update-on-plan-to-pay-off-strategic-financing-302071016.html#:~:text=%22As%20we%20announced%20last%20month,our%20shareholders%20along%20the%20way.

      1. Fabrib:

        I believe AHT is somehow selling their non-traded preferred at an 8% yield to its lemmings via Ashford’s private brokerage company while one can buy their publicly traded preferreds (AHT+D, AHT+F, AHT+H, AHT+I) at 15-16% yields.

        Proving once again that you can’t cure stupid, and that there truly is a sucker born every minute.

        1. Newbie question. I see that the “unsecured” senior noteholders were the ones who approved the deal. Why would the parent entity have to honor the commitments from the “unsecured” noteholders?

        2. Pretty sad. I thought CORR was a pretty smart play when they started up with just the gathering/pipelines inshore from the gulf. I owned it and the preferred in my high risk bucket for a while. Survived the BK of their biggest customers, seemed to be reasonably managed.

          Then they seemed to have lost their minds (at which point I bailed out at a break even). started selling key assets, jumped into California (which, of course is an easy place for a regulated business to thrive). made no sense to me.

          I never dug into what happened – hubris? management changes?
          Too bad.

  5. I bot OCCIN 5.25 12/31/2026 term preferred at 22.92 (8.93 yield) ..featured on Seeking Alpha by “Preferred Stock Trader”

  6. “Textainer Group Shareholders Approve $7.4 Billion Takeover by Stonepeak
    10:46 AM ET, 02/23/2024 – MT Newswires

    10:46 AM EST, 02/23/2024 (MT Newswires) — Textainer Group Holdings (TGH) said Friday its shareholders have approved its proposed $7,.4 billion deal to be acquired by alternative investment firm Stonepeak.

    The deal, which has received all the required antitrust approvals, is expected to close on or around March 14, Textainer said.

    Upon completion of the acquisition, Textainer’s shareholders will receive $50 per share in cash, the company said.

    The combined company will redeem the preference shares held by Textainer’s shareholders within 120 days upon closing, according to Textainer.”

    Note:
    The March dividends have already been declared with an ex date of 2/29. There may or may not be a June dividend depending on when the preference shares are redeemed, but one would expect a pro-rated amount to date of redemption.

    1. The March divi is about $0.39 (if I am reading correctly) and goes ex-div in 6 days. the shares are trading at $25.09, so they are about $0.27 undervalued at the moment (right?)

      1. I’d agree assuming you trade commission free that you could make 1% +/- in 20 days, on -b shares, unless there are some terms that I’m not aware of.

  7. SOLD JXN/PRA @27.61 for 10.4% principal gain & 2 dividend payments in less than 6 months,,,,,,,awaiting lower price to re-enter trade…..this coupon is now yielding 5.56% to call in march 2028….great time to sell and take advantage of the sudden price move

    1. people are chasing current yield for quality credits; it may have more to run;
      ex is 3/11 ; to yield current 7% it would trade at 28.57. right now its 7.27

      1. You are correct if there is not a call……..Assuming interest rates drop in the future and this gets called march 2028…yield to worst is 5.56%

  8. Tim
    I like EICB but I like EICA even more

    $23.44, 5% monthy coupon, callable at any time, maturity10/30/2026
    Two years earlier than B

    YTM 7.81%

    1. Good point Westie – I usually just add to what I already own–I will need to scrutinize a bit to see where the best value lays.

    2. Lower paying issues floating more than a year or two out tend to be underpriced for the long term. With a small YTM advantage I woudn’t necessarily say EICA is better.

  9. Japan Nikkei – the old high on 12/29/89 was taken out today; an amazing wait of almost 35 YEARS!

    1. Looking forward to Berkshire report. He went into Japan before the rest saw the opportunity. Coupled with hoped for insurance profits should be a nice quarter. Curious as to what he has been purchasing. Oh if only he could buy time!

  10. * FOMC minutes ~ most officials wary of premature cuts
    * 10yr T ~ up to 4.32% ~ will 4.4% be tested?
    * CME Fedwatch Tool ~ 6% chance of March cut, 28% for May
    * Bank Stocks ~ NYCB (-3.3%), FFWM (-2.84%), WAL (-1.86%), AX (-1.7%)

  11. I bought ESGRO at 24.66 (7.06 yld) as the ESGRO/PGX pair has gone from near 2 sigma rich in august 2023 to near 2 sigma cheap today (1yr horizon)
    on 3yr horizon its near 1.5 sigma cheap

    1. mj-
      The last 6 ex-dividend dates for ESGRO have been followed by drawdowns of 7%, 14%, 8.5%, 11%, 6% and 12% and subsequent recoveries. I can’t explain the volatility and might guess that the volatile period is over. Price dropped 2.8% after the Feb 14 ex-date and is still nearby.

      Your thoughts?

      1. Both very intriguing posts on Enstar. At face value I like this allot.
        ESGRO is only trading approximately 10% higher than the November lows as opposed to some preferreds trading 15-25% higher (no thanks)

        Company has been public since 1997 and the stock has been on a perpetual growth trajectory for over 2 decades (I don’t want to acquire preferreds with higher yields that have the common on a downward ski slope into the abyss)

        Decent size cap @ $4.5B
        Huge profit margins of 80%+ and very good operating as well.
        Annual revenues of over $900M
        Total cash of nearly $3B vs. $1.83B in debt
        Levered free cash flow of nearly $700M, more than enough to service the preferred.

        I’m all over this one next week. Riddle me this; how are these preferreds only rated a BB+ whilst say a New Mountain, in a much more risky space, that has barely any cash relative to their debt and their debt load is actually 70% > than their entire market cap?

        Thank you mjtroll. I don’t know how I missed this one.

          1. There’s also 29360AAA8, an Enstar Jr. Sub. F2F 5.75% with YTC on 9/1/25 = 8.438% at the current offer of 96.225 on E-Trade. Call seems likely since the float is 5 yr CMT + 546.8 BP. S&P = BBB-.

        1. Just a note of caution about Enstar. one might consider their debt, but one should be very cautious about their preferreds where payment is not mandatory and not cumulative.

          When I was looking into the nightmare as the Zyskind/Karfunkel cabal ravaged Maiden Holdings and took Amtrust private, I found Enstar to be heavily involved.

          IIRC, the cabal sold essentially all of maiden’s productive assets to Enstar (in a sweetheart deal), and Enstar got a nice slice of Amtrust as it went private. I am not saying that Enstar did anything illegal – but the whole series of transactions smelled pretty bad, and a lot of shareholders got screwed.

          I won’t do business with any entity the Zyskind/Karfunkel cabal controls (something about “crooked as a dog’s leg” comes to mind). I would also be wary of doing business with someone who was involved in their “screw the shareholders” transactions (unless you had really good debt protections). They might have learned some nasty tricks from the cabal (if they lie down with dogs…).

          Anyway, just my thoughts.

          1. Yeah, I personally stay away from all 3. I think it is good gambling money, but there is relationships amongst all of them, and not sure for the good of investors. I think all of them are slicker than a slop jar.

          2. what does “non mandantory” mean and do other preferred stocks have similar language specifying this?

      2. appears factually incorrect… I looked at the most recent one 11/14/2023

        11/13 close 23.84
        11/14 close 23.75 .38 percent actually in this case would be have been a good dividend capture strategy to BUY on the 13

        from 11/14 stock RALLIED to 25.47 high on 1/4

  12. Started a small position in MFAN at $24.8 . Seems cheap compared to the preferreds since it is senior and slightly higher yield.

  13. PPI ~ Up
    * PPI ~ up 0.3% m/m, above expectations, largest increase in 5 months
    * Core PPI ~ up 0.5% m/m, above expectations

    CME Fedwatch Tool ~ Down
    *March rate cut probability ~ 10%
    *May rate cut probability ~ 31%

    10yr T yield ~ Up
    *Intraday high ~ 4.326%
    *Currently ~ 4.297%

    Mortgage rates ~ Up
    *30yr Jumbo ~ 7.4%
    *30yr Fixed ~ 7.14%
    *15yr Fixed ~ 6.55%
    *5yr ARM ~ 6.88%

    AAA National Average Gas Prices (Reg) ~ Up
    *Today ~ $3.284 / gallon
    *Last Month ~ $3.07 / gallon

  14. Link to Seeking Alpha article I wrote (as a guest author) about the new 6.7% STT preferred. Still available below par.

    https://seekingalpha.com/article/4671027-state-street-preferred-6-7-percent-from-a-too-big-too-fail-bank

    Headline details for those who can’t access the article

    State Street Corporation (NYSE:STT) recently issued a par $1,000 preferred stock with a coupon of 6.7% that is attractive. Below are the key details of this fixed-reset preferred.

    CUSIP: 857477CH4.

    Coupon: 6.7% until March 15, 2029.

    Reset: On March 15, 2029, and every five years thereafter, the coupon will reset to 5-Year US Treasury plus a spread of 2.61%. For example, if the 5-Year is 4% at reset, the coupon will be 6.61%.

    Rating: Baa1 (negative) / BBB / BBB+ — Moody’s / S&P / Fitch.

    Taxes: Qualified dividends (15% rate).

    Dividend Frequency: Paid quarterly.

    Call Date: March 15, 2029, or any dividend payment date thereafter.

    Maturity: None (perpetual).

    Issuance Size: $1.45 Billion.

    1. Unfortunately Fidelity doesn’t have it their inventory. Maybe I’ll call them Tuesday to see if they can get me a few elsewhere. FIDO has done this in the past for me.

  15. The new Synchrony Financial (SYF) issue is trading with the temporary symbol SYFPV. I was not able to purchase it at ETrade. I was able to purchase it at Fidelity.

  16. I was able to find ownership details for CTA-B on Bloomberg terminal. As of Q1 2024 the two largest holders were Blackrock and Invesco with 162,032 and 78,670 shares respectively.  So, recent seller was either Blackrock or both.

    Blackrock’s historical ownership:
    Q4 ’22    125,768
    Q1 ’23    126,887
    Q2 ’23    137,929
    Q3 ’23    141,039
    Q4 ’23    159,296
    Q1 ’24    162,032

    Invesco’s historical ownership:
    Q4 ’22   85,453
    Q1 ’23   85,253    
    Q2 ’23   85,949    
    Q3 ’23   84,848
    Q4 ’23   81,507     
    Q1 ’24   78,670    

      1. Bought 200 at Ally. Had to call in and use temp symbol. 24.94ish. I think that is all I need of this preferred. A taste.

  17. BANC.F is down over 2% today on much larger than normal volume, and going ex div tomorrow for .48 cents. Common is up strongly today up 7%. Seems over done by a motivated seller. . . . unless they are bringing a higher coupon new issue to market.

    1. It’s been perplexing. As of this morning, BANC-F had a higher yield than NYCB-A, which seems crazy. (Yes, it’s not exactly a like-for-like comparison, but still.)

      Looks like someone dumped 100,000 shares shortly after lunch. I bought a few of them.

        1. Hmmmm..

          Seems like the debt is better relative value, tax considerations aside, assuming you are comfortable with 60 bps lower yield but better protection. I know, I know, it’s not a lot of protection, but it is something.

          The 02/02/2033 7.25% coupon is being offered on Fidelity now at 97.545, or 7.63%. Cusip: 87165BAU7

          I have no position and don’t aim to. They could be a good credit, I just don’t feel like spending the energy to fully research.

    1. J always appreciate a heads up on new issues; buying in the first few days of trading has proven to be a winning move imho.

      1. Usually is. But buying early when interest rates were rising hurt me for obvious reasons. Trick is getting your broker to buy for you on grey market before it moves to the big board. Fidelity waxes and wanes on this–sometimes will, sometimes not. In one case, it let me do so on the first day but not after that (lawyers took awhile to shut it down?). Does IBKR let one buy on gray market under temp symbol? Other brokers?

      1. Thanks, Steve.

        Coupon’s 8.25%.
        DEPOSITARY SHARES EACH REPRESENTING A 1/40TH INTEREST IN A SHARE OF 8.250% FIXED RATE RESET NON-CUMULATIVE PERPETUAL PREFERRED STOCK, SERIES B

  18. RE: FHLB 6.25% BOND

    for those interested, FHLB is now offering a 6.25% bond. these all, of course, are callable within 3 months or so. i have had more luck with FHLB than FFCB bonds in terms of calls. fidelity offers these new issues at no markup.

    FEDERAL HOME LOAN BANKS BOND 6.250
    CUSIP 3130AYZJ8
    semi-annual 02/23/2044
    AA+ 6.250

    best, avi

  19. MMFs today…

    VUSXX ~ 5.29%
    VMRXX ~ 5.28%
    VMFXX ~ 5.27%
    AGPXX ~ 5.23%
    SWVXX ~ 5.22%
    FUGXX ~ 5.21%
    SNVXX ~ 5.09%

    Other…PACW stock down 2.71%

  20. RE: 6.15% FHLB Bond

    for those interested, FHLB is offering a 6.15% bond:

    FEDERAL HOME LOAN BANKS BOND 6.150%
    CUSIP 3130AYZN9
    semi-annual 02/16/2039
    AA+ 100.000 6.150
    Settlement: 02/16/2024

    1. I have found those FHLB bonds usually have a relatively short time period to the call.

    2. It’s callable 5/16/24. At Schwab the ask is currently 100.1, for a YTW of 5.74%. For that call date you would currently be better off with FFCB 3133EP2X2 or FHLB 3130AYYH3.

      I wish the Schwab bond screener would let you sort by call date 🙁

  21. Midday Ups & Downs…

    5yr T ~ up, 4.27%
    10yr T ~ up, 4.28%, 50bp higher since Dec 26, intraday high 4.291%
    20yr T ~ up, 4.56%
    30yr T ~ up, 4.43%
    CORE CPI ~ unchanged, 3.9%
    CPI ~ down, 3.1%
    CME Fedwatch Tool for March rate cut ~ down, now 8.5%
    CME Fedwatch Tool for May rate cut ~ down, now 37%
    USD ~ UP, $104.8
    30yr Fixed Mortgage ~ up, 7.08%
    15yr Fixed Mortgage ~ up 6.42%
    5yr ARM ~ up, 6.66%
    XLU ~ down 2.31%
    WBA ~ down 4.64%
    Crude ~ up 7.6% m/m
    Gas ~ up 11.28% m/m

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