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Medallion bank Announces redemption OF its series f preferred stocK
New York, NY – May 29, 2025 – Medallion Bank (Nasdaq: MBKNP; MBNKO), an FDIC-insured bank providing consumer loans for the purchase of recreational vehicles, boats, and home improvements, along with loan origination services to fintech strategic partners, announced today that on July 1, 2025 (the “Redemption Date”) it will redeem all outstanding shares of its Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series F (the “Series F Preferred Stock”) (Nasdaq: MBKNP) at the redemption price of $25.00 per share (the “Redemption Price”).
Because the Redemption Date is a dividend payment date for the Series F Preferred Stock, the Redemption Price does not include declared and unpaid dividends. The regular quarterly dividend on the Series F Preferred Stock was separately declared and will be paid separately on July 1, 2025 to holders of record on the record date for such dividend payment in the customary manner.
https://www.sec.gov/Archives/edgar/data/1000209/000095017025078978/mfin-ex99_1.htm
Citigroup is issuing new debt and it looks like some C-N holders are thinking at long last its going to be called by the way its been trading in the past week. Anyone have any thoughts on this.
HESM shares slide after pricing a secondary at $37.25.
https://www.businesswire.com/news/home/20250528693491/en/Hess-Midstream-LP-Announces-Pricing-of-Secondary-Public-Offering-of-Class-A-Shares
Dividends are variable. If they pay .67 per quarter going forward that would be 7.19% yield. Who’s got a crystal ball? Not me.
No interest. Insiders are selling their shares lately wanting to cash out.
At one time I owned an absolute Boatload of HESM. But the continual selling by their 2 biggest holder of the shares and their continual “dilution” of adding more shares finally just turned me off. Iam somewhat surprised that the shares have actually held up pretty well. Anyway, Iam 100% out with no regrets.
UMBFP – Funding for CALL????? Call would have to be announced by 6/15 approx
https://investorrelations.umb.com/news/news-details/2025/UMB-Financial-Corporation-Announces-Launch-of-an-Underwritten-Offering-of-Depositary-Shares-Representing-Interests-in-Its-Series-B-Preferred-Stock/default.aspx
KANSAS CITY, Mo.–(BUSINESS WIRE)– UMB Financial Corporation (Nasdaq: UMBF) announced today the launch of an underwritten public offering of depositary shares (the “depositary shares”), each representing a 1/400th ownership interest in a share of its Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B, par value $0.01 per share (the “Series B Preferred Stock”), with a liquidation preference of $10,000 per share of Series B Preferred Stock (equivalent to $25 per depositary share). UMB has applied to list the depositary shares on The Nasdaq Global Select Market.
RBC Capital Markets, LLC and J.P. Morgan Securities LLC are acting as joint book-running managers for the offering and Piper Sandler & Co. and Wells Fargo Securities, LLC are acting as co-managers for the offering.
UMB expects to use the net proceeds from the sale of the depositary shares for general corporate purposes, which may include the redemption of all outstanding shares of its 7.00% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A and the repurchase, redemption, or retirement of a portion of its 3.70% Fixed-to-Fixed Rate Subordinated Notes due 2030.
Hearing 7.875 area QDI..
Thanks 2WR
////A startling decision Wednesday from the United States Court of International Trade appeared to put at least a temporary pause on many of President Trump’s wide-ranging tariffs.
The Manhattan-based trade court ruled in an opinion issued by a three-judge panel that a key 1977 law called the International Emergency Economic Powers Act (IEEPA) does not give Trump “unbounded” authority to issue the worldwide and retaliatory tariffs the president has imposed by executive order in recent months.////…….
Yahoo News Excerpt cut ..let’s hope the Judicial Branch can keep up the momentum vs the Executive Branch , fingers crossed!!!
Fan-
More like- anticipated and what took so long?
Yea… cause unelected judges having more power than an person elected by the entire country is a great way to lead the country. You probably didn’t know the constitution didn’t even give the supreme court the power of judicial review. It ruled on its own that it has that power. If the court can give itself powers on its own, can the legislature or executive not do the same thing?
Tim recently posted Golar’s Interim results for period ending 31 mar 2025 (https://www.globenewswire.com/news-release/2025/05/27/3088448/0/en/Golar-LNG-Limited-Interim-results-for-the-period-ended-March-31-2025.html)
“Declared dividend of $0.25 per share for the quarter” but no mention that they’ve gone dark on pfd divs. wtf?
Not clear what preferred you are talking about, assume it is GMLPF. If I remember correctly (highly unlikely) GLNG and GMLP are/were separate companies. They were once affiliated and have nearly identical names. GLNG appears to be free standing. GMLP (and GMLPF) ended up under New Fortress Energy’s ownership. NFE is in trouble.
GLNG Golar LNG Limited
GMLP & GMLPF Golar LNG Partners LP
The usual program with thsee shipping companies is that the parent company is / was the operating company and drops assets down to the finance subsidiary which pays a healthy divvy. I haven’t researched this, so JMO and DYODD.
Just saw a report on Scripps that Trump wants to privatize Freddie & Fannie Mac- gee, I wonder who will grab them- ca-ching.
Elsewhere:
““I am working on TAKING THESE AMAZING COMPANIES PUBLIC, but I want to be clear, the U.S. Government will keep its implicit GUARANTEES, and I will stay strong in my position on overseeing them as President,”
So- the buyer(s) would be in a pretty safe position. Hard to get that kind of guarantee in finance– unless you know someone.
This has been out there for quite awhile. Bessent was talking about it on Bloomberg a few days ago but he said it would be awhile b4 they could do this and it wasn’t no 1 on priority list. This totally benefits Ackman.He bought a bunch of the preferreds at .10-$1 as well as common. Huge win for him. I’d guess these stocks trend lower as now the news is out. It was expected
This is from last night, but of interest to anyone on the CODI preferreds.
https://www.sec.gov/Archives/edgar/data/1345122/000134512625000029/exhibit991-pressreleasedat.htm
> CODI has taken the following actions:
•Entered into a forbearance agreement with its lender group to preserve sufficient liquidity to maintain normal operations.
•Significantly reduced management fees paid by CODI.
•Restricted investment in Lugano, focusing resources on CODI’s eight other market leading subsidiaries.
•Suspended the quarterly cash distribution historically paid to common shareholders in order to preserve cash and protect long-term value.
The forbearance agreement part is the most interesting/worrisome. Are they blowing through covenants?
Gabelli calling a preferred.
https://www.sec.gov/Archives/edgar/data/845611/000199937125006706/gcv-n23c2_052625.htm
Thanks Justin
Ares Capital Corporation (Nasdaq: ARCC) announced that it has priced an underwritten public offering of $750 million in aggregate principal amount of 5.500% notes due 2030. The notes will mature on September 1, 2030 and may be redeemed in whole or in part at Ares Capital’s option at any time at par plus a “make-whole” premium, if applicable.
https://www.sec.gov/Archives/edgar/data/1287750/000110465925053065/tm2516245d1_fwp.htm
LANDO/VCLT pair has gone from near 2 sigma rich to .5 sigma cheap (1yr horizon)…have seen no news to account for this other than valuation
LANDO, a 6.00% fixed-rate perpetual preferred from Gladstone Land, now yields ~7.5%. Its sister issue, LANDP (also 6.00%), trades at similar levels, suggesting no idiosyncratic divergence.
My working assumption is the decline in price is due to a shift in rate expectations. Markets have moved from pricing in lower rates to now anticipating “higher-for-longer”. As a perpetual instrument, LANDO is highly rate-sensitive—more akin to a long-duration bond. Expectations have changed from lower rates to longer term higher rates, and the price is down as a result.
good comment..having said that is why I compared it to VCLT (Vanguard Long term Corporate bond ETF)
Kestrel Group and Maiden Holdings Complete Combination to Form a New Publicly Listed Specialty Program Platform
https://www.prnewswire.com/news-releases/kestrel-group-and-maiden-holdings-complete-combination-to-form-a-new-publicly-listed-specialty-program-platform-302465858.html
Kestrel CEO / team bios – https://kestrel.group/about-us/
A shame that anyone from Maiden is being kept around. Maiden’s current CEO is becoming Kestrel’s CFO (ugh). Hopefully he and the rest of the Maiden crew are shown the door after their contracts expire. They’ve conducted enough capital destruction over the years to be nothing more than a liability to Kestrel.
No word yet on how MHNC and MHLA will be handled (typical Maiden-level communication effort..)
Thanks TB, years ago I owned and just by luck bailed before the dividend was suspended. Done with speculating on stocks with suspended dividends that may or may not resume payments.
MHNC is a bond, not a preferred. They have not missed an interest payment to date, though I’m sure if they could figure out a way…..
Thanks llab, I just vaguely remember the bottom dropping out of the price right after I sold and can’t remember the reason now, just glad I got out
DLNG-B will see a full redemption on July 25, 2025.
Bummer, though not too surprising, it’s currently yielding over 10%.
Thanks PierreK
Thanks for heads-up. Still appears to be trading at negative YTC? Bid at 25.53, and I was able to sell at 25.65.
CR-
That happens with past call issues, right?
Not sure what you’re asking? Certainly can be true for many issues past call, but folks (including me) might hold on to them, assuming they won’t be called immediately or next available call date, and taking the risk of a negative return. Here, with definite call date (thanks to Pierre), easy to see that final payout would be less than price at that moment.
Does this generate a 10k?
An annual report?
delisting will be filed on Edgar, but it only needs to be filed before the redemption.
K-1 – NOT 10K… DUH!!!
a 25-NSE
2WR,
According to their website, they issue 1099s for their preferreds:
http://www.dynagaspartners.com/?page=inv_tax&year=2024
I clicked on the link to each year. Each one brings up this statement:
Dynagas LNG Partners L.P. (the “Partnership”) has taken the position that all of the cash distributions made to its common unitholders and preferred unitholders in 2024 consist of taxable dividends, rather than return of capital, for US federal income tax reporting purposes. Please be advised that while the Partnership operates in the form of a limited partnership, it has made appropriate elections with the U.S. Internal Revenue Service to be classified as a corporation for U.S. federal income tax purposes.
Accordingly, the Partnership’s investors will receive IRS Form 1099s, if required, rather than Schedule K-1s. If you are a U.S. unitholder and you have not received a Form 1099 (or, received one that does not properly reflect the necessary information regarding the distributions), you should contact your broker or your tax advisor. All unitholders are encouraged to consult their own tax advisors to determine the appropriate tax treatment of the distributions.
hmm.
I thought he was talking about the redemption, not the tax form…
Justin, 2wr corrected himself. He meant to ask it they issue K-1 forms, not 10-K forms.
2whiterosessays:
05/27/2025 at 1:01 pm
K-1 – NOT 10K… DUH!!!
todays 10 yr tips auction : 2.22 + inflation
https://www.treasurydirect.gov/instit/annceresult/press/preanre/2025/R_20250522_3.pdf
So does that spread indicate that the market believes gov’t inflation data is understated by 2.2% because why should there be any real return if there is no risk?
Dan,
I have enough trouble finding good rates ; I don’t have the intelligence to speculate on “why?”
I’m beginning to believe we need to price in default risk
liquidated CHSCN at 25.51(25.26 stripped ) as the CHSCN/VCLT pair has gone from 2 sigma cheap in september to 2 sigma rich now.. also I believe that a close below 72.12 on VCLT is ominous…
also liquidated SREA for macro reason noted above..
MJ, The 1yr chart on VCLT has been in a downtrend. Inverse to the price of VCLT the yield has gone up. I see VCLT invests in U.S. dollar-denominated investment-grade fixed income securities issued by industrial, utility, and financial companies with maturity greater than 10 years.
This tells me bond prices are falling. The Sempra bond peaked about 6 months ago and the value has been falling to now the Yield is above 7%
The market and the index’s have recovered almost all the losses from the 1st couple weeks of April. That is a pretty quick recovery.
Are the odds greater that the market will move up, or will we see another drop? If we see another drop, will these securities drop farther? or will investors flee to them because of perceived safety and drive the prices back up?
good comment…fwiw VCLT seems to have found bottom ..close above 72,25 confirms.. I paid 20.37 to buy back SRE as the SREA/VCLT pair is near 2 sigma cheap (3yr horizon)
MBNKO is live at Schwab. Bid $24.10, Ask $24.29, volume 19,000.
Took a small position @ 24.15.
I would like MBNKO a lot more if it were cumulative. The market is skeptical with trading at 24.
Good luck finding a banking preferred that has a cumulative dividend.
Jack I have one. There’s also flag bank preferred U
Flagstar U is a bond, not a stock.
https://www.sec.gov/Archives/edgar/data/1171612/0000928385-02-003424.txt
IIRC, there isn’t a cumulative bank preferred in existence. The Fed won’t allow them.
But if you think you own one, post it, and the prospectus should make it pretty clear.
I recall reading something about if cumulative, the funds could not count as top tier reserve, thus allowed, but not very likely. I could easily be wrong.
Maybe I am mistaken Justin and you’re correct but I thought BANFP is a trust preferred?
Yep, a Trust Preferred.
QOL:
BFC Capital Trust II, 7.20% Cumul Trust Preferred Securities
Ticker Symbol: BANFP CUSIP: 05539S206 Exchange: NGS
Security Type: Trust Preferred Security
mbg, A Gridbird special he traded in and out of. I just prefer to ride out the ups and downs.
Me too. It’s one of those stocks that Fido limits trade sizes, so for me it’s like a Roach Motel. Hard to get into and out of.
Which is a bond and not a stock. it pays interest, not dividends.
JacK-Def few and far between. C-N and BACRP have huge premiums and FLG-U is all I can come up with that are banks.
all of which are debt and not equity and pay interest, so they aren’t cumulative preferreds, they are bonds where deferral can be done, but it would lead to very bad things…
here is the prospectus for C-N.
https://www.sec.gov/Archives/edgar/data/831001/000095012310091056/y86235b2e424b2.htm
and here is what happens if they defer.
Citigroup will not, and will not permit its subsidiaries to:
• declare or pay a dividend or make any distributions on its capital stock or redeem, purchase, acquire or make a liquidation payment on any of its capital stock, or make any guarantee payments relating to the foregoing; or
• make any payment of interest, principal or premium on, or repay, repurchase or redeem, any of its debt securities or guarantees that rank equally with or junior to the junior subordinated debt securities.
so they are on death’s doorstep if they are making the decision to defer.
Justin, Thanks for the C-N reference re divis.
Recent Qtrly C-N Divis … Oct 2024 = .7594 …. Jan 2025 = .7169 … Apr 2025 =.6824
Haven’t seen the new reset , would think a fade to the .65c area.
Recent prx fade to the $29 + – area still seems in line.
FNMA gapping +41% in premarket based on DJT comment. Anyone loaded with this might want to consider a trim a here. What a run, in 6 months from $1 to nearly $11 now just based on pure hopium/speculation.
How low can we go. Fidelity has changed the symbol again on WTFPL. They cancelled my GTC and have to re-enter as WTFCL the price drop yesterday was quite dramatic, now below par
I believe the ticker is WTFCN
https://www.nasdaq.com/market-activity/stocks/wtfcn
no bond market turmoil discount today as of now
af, your right. They have changed it multiple times now I am losing track.
Today it is showing as WTFCN at Schwab.
I bought 20 shares of WTFCN and BUSEP last week with their OTC ticker symbols. I looked carefully at the orders before placing them, and Schwab showed commissions of $0.00, so I placed the trades. Typically, they would show a commission until they are assigned their final ticker. Today, they changed their tickers and retro-actively added on $6.95 commissions for each privious trades. I called them, pointed out that the trade details do not show a commission, so they reimbursed the commissions. I recommend a little research on trade details for anyone that bought early at Schwab.
G 2 Cali …..Re this new Wintrust item …. at Schwab also …. have had a terrible time getting a order entered with all the Ticker changes…. alphabet soup !
Interesting that on Thursday afternoon Schwab is using the WTFCN ticker for order entry, which the original filing docs showed that ” N ” to be the Permanent ticker symbol. When called Bond Desk, did not recognize the ticker.
Thursday closed at $25.40 ….. I think !!!!
FWIW– TDS-U 6.625% $19.40 off 6.32%, current yld 8%
good comment TDS-U/VCLT pair has seen TDS outperform since may 2023 ..on a 1 yr horizon today it went from 1 sigma rich to 1.5 sigma cheap ..will be aiming to buy near 3 sigma cheap which equivalent to where it was at beginning of year..close below 72.12 is ominous on VCLT
I can’t bring myself to buy anything, even on the “hiding spot” list. I believe better prices on preferred and baby bonds are to be had in the next leg down which might well come from a new high in bond yields combined with a blow out of spreads. Definitely not a good environment for preferreds and baby bonds but will certainly create some good bargains. Interestingly my best performer post liberation day is STRF now trading over par!
I think max pain would be a move higher from here as many are still short maybe even a double top. Then a big sweep down to close the big air pocket. I am in MAJOR RISK OFF mode right now.
Good comment.. close below 72.12 ominous on VCLT
RILY – Deck Chair Announcement: B. Riley Financial Announces Private Bond Exchange to Reduce Debt by Approximately $46 Million
https://brileyfin.com/press-release?release_id=122663
“LOS ANGELES, May 21, 2025 /PRNewswire/ — B. Riley Financial, Inc. (NASDAQ: RILY) (“BRF” or the “Company”), a diversified financial services company, today announced it has entered into a privately negotiated exchange agreement (the “Agreement”) with an institutional investor, which will reduce the Company’s total outstanding debt by approximately $46 million.
Pursuant to the Agreement and subject to the completion of certain closing procedures, the investor has agreed to exchange approximately $139 million in outstanding Senior Notes, consisting of $30 million in March 2026 notes, $75 million in December 2026 notes and $35 million in January 2028 notes, for $93 million in newly issued 8.00% Senior Secured Second Lien Notes due January 1, 2028 (the “Notes”). In addition, the Company is issuing to the investor warrants to purchase an aggregate of approximately 372,000 common shares at an exercise price of $10.00 per share. The warrants are exercisable for a period of seven years from the issuance date.
Bryant Riley, Chairman and Co-Chief Executive Officer of BRF, said: “We’ve made significant progress addressing our capital structure over the past several months as we’ve negotiated three bond exchanges to reduce our total outstanding debt by approximately $93 million. The exchange announced today represents our largest to date and eliminates more than $100 million in 2026 maturities, representing a significant reduction in near-term debt and an important step forward for B. Riley. We expect to opportunistically utilize the remaining capacity under our Senior Secured Second Lien facility to further improve our balance sheet.”
Looks similar to what BW did (gee, I wonder why???), giving private investors a secured position in exchange for their unsecured notes….
I believe this should be reported on Riley financials as a huge ” gain on early extinguishment of debt” per APB 26
Don’t be fooled if there is large profit in this quarter.
The new Wintrust ( WTFPV ) is now trading at Fidelity as WTFCL if you had any open orders under the temp symbol they have been cancelled.
Thanks, Charles.
For me, Fido recognizes WTFPL, but not WTFCL.
WTFPL also shows up here:
https://www.otcmarkets.com/stock/WTFPL/overview
mbg, my mistake, I apologize
mbg, I have been checking every morning before market open on Fido and was expecting the symbol to change Monday, been checking every day since last Friday. Today I started typing WTFC and it offered the suggestion WTFCL and was showing 125 shares had traded pre-market. When I looked at my open orders it said my GTC limit order for WTFPV had been cancelled,
Then again, at 6:00 in the morning I’m still only half awake!
I hear that, Charles. Beat’s me why Fido showed WTFCL this morn.
otcmarkets is a good site to check during periods when temp symbols are being used, esp. when they change from one temp to another.
Re the new Wintrust Issue ( 7.875% ) …. I am w/ Schwab …. have been seeing the Pink Sheet activity for past week under WTFPV.
As of Wed 10am NY …. I am still getting a no trades activity.
The answer is easy, yet I have tried all of todays symbols with no ##’s.
Called Schwab …. no good answers.
When free of productive trades, give a hint at my mistakes !! thanks
Closed 5¢ below par, and 35¢ off the day’s high.
The other recent one BUSEL- is @ 24.70 — down 5¢, going < par is rather strange, but not totally unexpected.
This was on the other site. I suppose it is on multiple news feeds, but others following UNH might be interested. Especially if you had a family member who was or is in a nursing home and had to fight to get coverage.
I can also see where members of Congress can personally profit from having knowledge ahead of time.
According to the Guardian, the payments were linked to a company program under which its own medical teams were operating from nursing homes, helping the facilities to cut expenses attributed to its enrollees.
The report was based on thousands of secret corporate and patient records and two whistleblower declarations presented to Congress this month. More than 20 current and former UnitedHealth (NYSE:UNH) and nursing home employees also gave details of the alleged practices.
The company denied the allegations,
UNH -6%
CODI suspending it’s common dividend for now. Good move by management in my opinion. This will save the company about $90 million per year. All of their three preferreds cost them only $22 million annually.
Preferreds look to be in much better shape now.
May be OT to your post but … PE nursing homes and hospitals seem to end up in publicly traded REITs as “safe” investments. There seems to be a lot of asset stripping, accounting tricks and self-dealing once PE gets involved, so these assets are not as safe as one would like to think they are. Not even mentioning the government program cuts which will eventually be felt by the medically-oriented REITs as their tenants begin to falter. JMO. DYODD.
Bear, This does not hold true for nursing homes. Actually Medicaid just increased their reimbursement. Further, the real estate has become more valuable. There are big firms now purchasing mom and pop’s and smaller regional. Cheaper to buy than to build. Forecast for future use vs. new inventory clearly shows there will be a lack of supply.
The market is differentiated by private pay vs Medicaid.
Surgical house calls? Errk!
TLT is getting perilously close to the Oct 23 low of 82.42.
If you listen to Cramer, and I do have it on sometimes but would never pay to join the CNBC club except to trade against his calls (was a HUGE moneymaker in his first few years),
if Congress passes the current bill or anything close, rates are going to go straight up.
I agree with that , so of course I look for others that agree with me (haha), yet I have a huge slog o long term exposure.
If you consider things that could affect all markets, long-term rates stands out .
TIPS are 2.71 + Inflation this morning.
I noticed that as well. Staying very dry right now, in FLOT.
I noticed that as well. Staying very dry right now, in FLOT.
Same with FLOT. Also use TBF to a lesser extent.
New KKR note
https://www.sec.gov/Archives/edgar/data/1404912/000114036125019838/ny20042796x2_424b5.htm
7 -7.125 coupon talk…
Thanks Vito
CMSD just went ex-div and is selling at a higher price than CMSC which goes ex-div on or about 6/30/25. By swapping, you get the 18 cents extra accrued dividends “for free.” For those of you who would consider such as swap (looking at you, Green and Gold), now might be the time.
Disclosure: I did this with a very large number of shares, within the context of my meager portfolio. I’m now completely out of CMSD.
Don’t take financial advice from retired sailors, and DYODD.
Thank you Retired. Good eye! I would do it but I exchanged all my CMSD for CMSC the last time this happened. Thank you!
Between now and the end of June, there’s a good chance that CMSC will sell for considerably more than CMSD. That will be the time to switch back. If not, just stay put. Exchanging right after the ex-div sometimes works, too.
What about CMSA? Isn’t this even better compared to the rest? Why there is such diff in price?
Not accounting for ex-div dates, CMSC and CMSD should sell for about 4.4% more than CMSA in order to have the same yield. CMSA’s price compared to CMSC/CMSD swings in a larger range over time. For that reason, it may be better to swap between CMSA and one of the others than to just swap between CMSC and CMSD. However, it’s easier to see the “right” price relationship between CMSC and CMSD since they have the same coupon rate.
Disclosure: right now, of my holdings in CMS, I’m about 60% in CMSC and 40% in CMSA.
SPLPP looks to be yielding in excess of 10% to the Feb 26 redemption .
Co can redeem for cash or stock (60 day VWAP)
I bot MBINM at 25.19(24.93 stripped) ftf 10/1/2027 5yr +4.34 ytc 8.89 ytc using stripped price and it trades at parity (quantwolf calculator) …the MBINM/SJNK pair is trading near 2 sigma cheap on 1year horizon
New in this board, mostly reading. i bought GRBK-PA at 21.72 Cumulative perpetual 5.8% yld, Trading at the lower end of 1 year horizon. Got the first bunch today
Al – Fantastic alert. I don’t think I ever vetted this one. Nearly $3B cap with close to $100mm in operating cash flow, incorporated for two decades, huge annual revenues >$2B with 20% operating margins and over 17% net profit margins. Cash > $100M vs. Debt $200M.
The most positive momentum factor this company has going is the consistent double digit quarterly revenue growth YOY. For a near 7% yield this is legit pick. Cheers.
According to Quantum Online: Green Brick Partners, is a diversified home-building and land development company that currently operates in Texas, Georgia, Colorado, and Florida. The preferred A-shares are subject to 15% tax, which is suitable for non-qualified accounts. Good choice.
good comment.. grbk-a/vclt pair trading near 1 sigma cheap (1yr horizon) ..has outperformed since december 2023.. on a longer term (3yr horizon) pair is trading fair value ..
Nice one – I actually picked up some shares at 21.75 when I saw it was qualified and going x-div on 5/30. Tried for 1200 shares but only got 698 at that price. Canceled the rest of the order and put the funds back into SGOV.
With all the talk on the US credit rating people may have missed this.
https://www.fitchratings.com/research/corporate-finance/fitch-places-edison-int-l-so-california-edison-on-rating-watch-negative-16-05-2025
Thanks Charles.
BUSEV is now trading as BUSEL If you have a bid in you might want to change it.
MFA-C sure seems like a bargain today. I already have a full position, so I haven’t been buying, but it’s been trading at about $24.30 this morning. It switched to floating in March, and is going ex-div in early June as a floater. It’s got about $0.50 accrued ($23.80 stripped), and will be paying a 9.9% coupon (TSFR3M+5.35%+0.26%) for the first time at the end of June, making it a 10.4% EY. Unless you think they are going bankrupt (please tell me if they are!) this feels underpriced. I think it’s cheap because the markets still aren’t fully pricing in the new floating rate.
Nathan- I like it here at 24.35 and below.. It seems about 40 cents cheaper than it should be, basing that on other mREIt prefs. It’s a great name to flip, as you probably know. My guess is that it bounces back above $24, shortly after ex date.
That preferred is giving you a 560 bps spread. The bond MFAO gives you a 500 bps spread. I don’t think 60 bps is enough compensation for stepping down in safety to the preferreds. Typically, I look for 150-200 bps extra spread from a preferred over its sr. bonds.
Makes sense, but I think you’d agree that we need to consider not just the spread but the current price. MFAO is about $24.80 stripped ($0.11 accrued) with EY of 9.06%. MFA-C is $23.83 stripped ($0.52 accrued) with an EY of 10.42%. MFA-B by contrast is paying just slightly lower than the BB’s.
It’s not quite that 150BPS advantage you say you are looking for, but pretty close. As ‘maine’ said, I think it’s probably going to bounce back above $24 pretty quick once the 9.9% coupon rate gets recorded. I said I was full already, but I grabbed a few more shares today hoping this is true.
It’s kind of silly to not factor in the price, no?! Prices matter for current yield AND and potential price appreciation as it trades closer to par, a very likely scenario.
Nathan, BTW.. the dividend was declared this evening: $0.61911