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Top 10 MMFs today…
1. VMRXX…5.29%
2. VMFXX…5.28%
3. VUSXX…5.27%
4. GABXX…5.25%
5. DTGXX…5.21%
6. IDSXX…5.17%
7. FZDXX…5.15%
8. SWVXX…5.14%
9. TSCXX…5.10%
10. PRTXX..5.05%
CKNQP 300 shares offered at 99.20
The market is hitting floaters lately.
https://www.quantumonline.com/search.cfm?tickersymbol=CKNQP&sopt=symbol
Maine, More liquidity on CKNQP now, 1k sold and another 900 available. I just picked up a few hundred more.
thanks, pig
Lucky at $99.15
What are the odds of SOFR dropping another 105 basis points from here in the next 4 months? That would have to happen for the first floating rate payment starting 1/1/25 (to be paid 4/1) to be lower than 8%. They are also only callable on dividend payment dates beginning 1/1/25. So the incentive ought to remain high for them to call on 1/1/25 OR for shareholders to begin receiving a continually outsized rate of floating payments. I think 99.20 = 9.85% yield for first call.
2WR, I fully expect them to call this. But would certainly welcome it if they didn’t. Thanks for the details
Interesting arbitrage today….
Sold $25K of A rated 6/26 maturity bonds for $25.5K because YTM from present market value was 4.4%.
Thanks to Charles and pig, put it all into CKNQP yielding 6.2% and/or YTM of 9.85% if called 1/1/25.
Yes, CKNQP is rated several notches lower, but I have highest confidence in federally chartered co-op banks.
III delivers again.
Thanks, guys
My GTC hit at $99.20 for 250 shares. I have a huge pile of this one already so that should top me off.
BAC preferred Series X got the call notice today.
https://newsroom.bankofamerica.com/content/newsroom/press-releases/2024/08/bank-of-america-announces-full-redemption-of-its-series-x-prefer.html
Would’ve liked this one to float but no big surprise they’re redeeming it.
Ugh – thanks for sharing
Nikkei down 12% in one day, serious margin implications??????
I have not seen a report here yet that the parent of Central Parking, SP Plus, was acquired by a private company, Metropolis Technologies:
https://www.metropolis.io/news/metropolis-closes-acquisition-of-sp-plus
I wonder if that has anything to do with CRLKP paying at a 5.05% rate this quarter rather than its standard 5.25% rate.
SNewman, yes the reduction in payment must somehow be related to the Metropolis Technology Inc’s take-private acquisition of SP+ in May of this year (following SP+’s previous acquisition of Central Parking in 2012). Good luck finding out anything from them (let me know if you do): they don’t even post a corporate phone number.
All the text on their site (metropolis.io) is focused on “technology” and “AI” and “check-out-free payment”, and nothing about actually operating the parking lots.
Earlier you’d posted, “CRLKP, which a few here follow, reportedly reduced its distribution for the most recent quarter – one of the reps at a brokerage told me: “After double checking with our clearing firm […] CRLKP […] informed the DTCC to pay at a rate of $0.301174 instead of the usual $0.328125.””
I have observed the same thing (actually, the rate I observe is $0.301180/share, which I calculate to be an effective 4.819% coupon payment, not 5.05%, and certainly not 5.25% as stated in the prospectus (https://www.sec.gov/Archives/edgar/data/1062218/0000950144-98-009207.txt).
There is nothing in the prospectus I can see about reducing payment, only payment deferral.
It looks like someone is selling CRLKP today for $22.50. I think I get a YTM > 8% at that price. I picked up a little.
DICK W-
I think it is on the pink sheets- reporting at OTC. No fear of it going black with a buyout?
I have some and could sell without a big loss– been caught in these too many times.
It matures on April 1, 2028. I am planning to hold to maturity. So I’m not worried about expert market.
RF-PF 24.37 was going to buy to flip it. Now I might have to keep for the income
One account down by .45%
Bot PFFA today at 21 ;; this is a ETF ; it picks stocks and has leverage ;
yield about 9.5% ;
its far different than PFF that tracks an index; excellent piece on it in SA few days ago
I’ve been laying downside alerts on ToS like landmines for months. I’ve had 27 go off today so far. I’m not in a buying mood, but these looked interesting although I’ve forgotten why I liked them. Can someone remind me?
ANG-B (bounced)
TECTP
Although it’s still a year away, ANG-B has a massively high reset premium of +6.297 when it resets 9/25
TECTP was just mentioned today as it traded below its $10. It’s a private bank with no publicly traded shares (he says, redundantly) but it seems to be relatively well respected and not into the areas of most concern for small banks. It just started floating in May and is only callable on div payment dates, so it’s too late to be called on 8/15 and will float at SOFR + .261 + 6.72 so should end up paying over 12% once its next float rate is determined next week.
(TECTP) Tectonic Co-Chairman is George Ball. I’d be careful, I’m truly unsure that if I shook his hand I’d get back all of my 5 fingers 🫣 https://www.investmentnews.com/industry-news/news/balls-back-on-the-street-unscathed-by-old-scandals-7602#:~:text=After%20Hutton%2C%20Mr.%20Ball%20moved%20to%20Prudential-Bache%20as,risks%20involved%20in%20investment%20partnerships%20sold%20by%20brokers.
Please do your own due diligence, Azure
Do you remember this guy from the 80’s? Ever met him? I never did, but I remember having the impression that he was one of those guys that you could never figure out how he got to where he got….
2WR, I was an Institutional Money Manager at Prudential just after Mr Ball was fired and adjudicated. I was directly hired to clean up the inconceivable and scandalous mess he made. MAYBE the BOD wanted me to work for them because I had gone to law school and was trustworthy to them…
Trust is the glue of business and our lives. It’s the most essential ingredient in daily effective communication. It’s the foundational principle that holds all relationships. Just ask yourself, “would you trust Mr Ball with your money” after knowing his history 🤐
Well said philosophy.
TECTP- Ex today, so down, but a lot recovered.
r2s, You must not be watching the same stocks as me, or I must want a really good deal. I have 28 GTC in one account. 4 filled and 2 partial fills.
To give you an idea of how I really need a good bargain to buy something, I only had 17 of the PF and BB holdings in the green, yet the account was only down .45% for the day.
10yr ~ just hit 52 week low, 3.75%
VIX… at open 55, now 46
fyi for a trade idea for your riskier side of investments.
CWM and Scott initiated trades this week for Golub – GBDC. In my opinion they do ok on their investments as they document their trades in a spreadsheet as they do them for their subscribers. I also follow BDC’s to juice my income. This is where i put my risky money at. They initiated at $14.75 and $14.80. I noticed the drop in the last few weeks in this BDC, and I have initiated various trades between $14.73 – $15.35. Again, please do your own due diligence and understand your risk profile and investment time horizon. This is play money for me as I am not currently spending any of my saved up money and probably wont spend any of it for another 10 yrs.
thanx again Mr C, I have GBDC, having never owned these before, I did some dd; I see people have done quite well with them and having been burned in 2008-9 somewhat on Capital Source which was a mezzanine biz loaner, finally bought by PacWest (!!! no comment!!) I was always skeptical of those who had to pay up and go unconvential for loans. now of course ‘private credit’ and bdc’s are the rage.
Anyway with so much time on my hands looked into this one. one of the Mr Golubs was on CNBC w his wife Karen Finerman who I find quite conservative. I liked the heavy cash position, he and his brother’s long time connections to things, was not fond of the allocation to software but these days that ‘category’ can encompass so much, read thru, took a nibble. I may build to 1% or so in Roth. I know it is not a big allocation but want a comfort level with it. Nice pick I guess we’ll see! bunch of discussion on SA of course too. Guess I was a little early, may average down a bit after gauging things in the coming weeks. others/ DYODD thanxx. B
Bea, I also picked up a # of shares of BIZD on Friday. An ETF covering ~ 26 ish BDCs. Ares, Golub, Main, Blue Owl … I thought it was a good entry point as it has fallen to a 6th month low. Could it fall further? yes, but I can’t seem to find the guy with the crystal ball. This will also help me diversify the risk in this space.
I would like to also move more into ETF’s. If anyone has great ideas for low cost ETF’s, I am all ears… There is a CEF category on this site, but no ETF discussion thread. I have > 200 baby bonds and preferreds that I own, and I would like to move more into ETFs as the years go by. There is no way in hell that if something happens to me that my family will want to manage what I currently have.
Does anyone have other opinions on this particular ETF? I like the idea of diversity in BDCs with an ETF although this one has an 11% expense ratio from what I see.
Yield,
The way it was explained to me is that accounting rules require those types of funds to include the expenses of the BDCs they hold also. So it looks out of whack, but really isn’t. I just jumped into PBDC yesterday, its real expense ratio is actually very reasonable even though whats reported is crazy high due to the BDCs that ETF holds expense ratios.
i added some this morning at 14.32.
Received email today that Federal Farm Credit is calling their 6.08% agency bond on Aug. 8 (CUSIP 3133EPHJ7). Earlier this year the calls got down to about 6.32%. Now it seems that all +6% agency bonds are goners (*sigh*).
goin2cali;
I am holding this on and suspect it will go at the earliest call date which is 10/16/24. About the last thing most retired persons need is lower rates, but we have to play the hand we are dealt I guess. Maybe I will just take it all to the Chumash Casino and put it on the red 🙂
.3133EPYD1
FEDERAL FARM CR 6.85%43 DUE 10/16/43
I’ve got one callable agency >6% with more to come. .. such as 3133EPZJ7 6.95% with 88 days to call. And here I was hoping to hold that one for 20 years. This is how I will be involuntarily raising cash.
And yet this week I was able to buy a new issue Federal Home Loan 6% due 8/12/39 with a 6 month first call… bot assuming I was buying a 6 month piece of paper…….CUSIP 3130B26G5
This one worked out pretty well. I bought it when issued on 4/30/24 at par and it isn’t callable until 4/30/26 as it most likely will be, no way it will go to 4/30/34, so to me it is just a 6% 2 year CD.
48130CKC8
JPMORGAN CHASE & CO 6%34 D
FWIW – Capital One still has (of this writing) a one year CD @ 5%.
And my take on the Fed, why lower rates? There is no “normal” for the Fed Funds rate but it’s been 5-6% on average forever, with much higher rates in certain periods. The fact is that we have too much debt at every level – government, corporate, and individual/household. That is the real problem, not the 5.25% Fed Funds rate.
Weird price action -big mover today: COMSP 7.50, then down to 0.05, and up to 6.61 No news driving it. Various quotes.
Someone must have fat fingered a trade or failed to enter as limit trade and got caught by someone with GTC.
It had been at 4¢ before a 600sh purch at 7.50, then a 600sh drop to 5¢, then closed the day 6.61 with 7500 share total. Looks like a thumb error, but who is buying at 6.61 for that many shs after being 4¢ ??
Like Button ~ “Like Button” messaging changed on several III’ers from reviewing recent comments under different tabs (mine included). Tim or anyone else know what the odd “Like Button” messaging means??
I suspect this is a website issue for Tim.. I clicked and got this message..
“(FREE tariff plan allows to show maximum 1 button(s) per page. Upgrade your website plan on LikeBtn.com. To remove such notices uncheck Show Info Notices chekbox on plugin Settings tab.)”
JBBB down 1%. It’s been quite stable but there’s obviously some panic going on in the markets. We’ll see if this is a canary in the coal mine or an opportunity. JAAA is unchanged right now.
JBBB’s NAV was actually up 4 cents on 8/2 to 48.90. Shares closed at 48.41, an unusual discount for a liquid ETF.
JPM sees a 50bps FED cut in Sept and 50 bps in Nov. God forbid we have weakness into the Holiday season. I guess it is Halloween, in the market and in the stores, boy they rush the seasons don’t they!! Bea
Bea:
Been watching my Schwab short term treasury money market funds closely to track the yields, but still over 5%. But it definitely looks like CD yields are starting to reflect a big drop in short term rates. I have a 5.45% CD maturing in a week and the potential replacements at Schwab look meager at best.
All that risk-free interest income at 5%+ sure was fun while it lasted! But I think we should all pray that we never had back to ZIRP. The last thing I want to see again is another investing environment of “return-free” risk.
Thanx Papa Doc, been watching my SPAXX as well but hanging in at 4.98, the FIDO sweep a/c, of course w big .42% fee, most of mine is in SGOV where I get instant trading access if needed. I did a lot of buying just now, more BFS D-E, heavily overweighted in those, MGR and MGR E and a few energy names a few gold miner names on the spec side. Nice to have cash to do things! good luck. DYODD.
IMHO, you are better off looking the yield curve instead of your MMF to get a gauge on rates for CD rollovers. I look at the 1 year and 2-year Treasury rates, You aren’t going to see a giant drop in MMF rates until a rate cut because that’s the rate the Fed controls. A little secret: many MMFs park a lot of their overnight money with the Fed.
If you have cash around you might want to look at essentially pre-refunding your 5.45% CD by buying a new one now instead of waiting. Don’t know what term you are looking at but brokered 1 year CDs went decisively under 5% today. There are still 1-year 5% CDs around for direct purchase. Yeah, 5% is bad, but 4.5% is worse. JMO. DYODD.
just posted elsewhere – 5.15% APY NON CALLABLE 13 month CD still available at Synchrony Bank onllne
Thanks. Surprised that Synchrony’s on-line savings accounts are still at 4.75%. My list of usual suspects. Bask Bank at 5.25% for 1 year. Marcus/Goldman at 5.15 for 1 year. CapitalOne at 5.00 for 1 year,
Fiudelity sweeps at 5% some short term etf’s slighltly higher, no reason to lock up money when I might find somethign better to do with it possibly qualified dividend.
Hey Martin – Would you mind a theoretical question? I have no clue whether you follow NEWT notes at all and that’s really not important, but I noticed that on close, NEWTI 8% 9/1/28 ca 9/1/25 was at 25.37 while NEWTG 8.5% 6/1/29 ca 6/1/27 was @ 25.25. Ignoring for the sake of argument what the exact bid/asked spreads were, and I realize that’s too important to really ignore, I was wondering in your world of arbing between issues of the same issuer, would that be a large enough spread to pique your interest? And if not, rule of thumb, how wide does it have to be before you try to play the game? Just curious… It’s sort of another picking up pennies game I suppose and why not if they’re there for the picking?
Haven’t been following NEWT but in that example I would’ve been in NEWTG long before the difference got that big, missing out on the full profit. Assuming I couldn’t find a reason for the divergence.
I trade in pieces. If all in on one issue I’m quick to even things out so I can move in either direction. But then slower to complete the swap until I get a bigger price difference. Also depends on volatility, if tight issues trade in a narrow range I’ll swap for a dime it’s free profit in additon to the dividend. But on issues that move more wildly I’ll gradually walk it up to a larger advantage. Or just sell some shares and wait to buy them back. Too many factors to follow hard and fast rules.
Thanks, M….interesting to find out more about your pure arb trading strategy…. Usually I’m too lazy to try but do other low risk penny picker upper things as you probably know…. And in this particular case, I’m already in the wrong one to be able to take advantage… lol
You seem to do quite well with what you’re doing and always have interesting thins to say.
I wouldn’t call it pure arb I look at other things too. Technically it’s not arbitrage by the strict definition we just call it that because it’s basically the same idea.
Thanks for the compliment, M… It’s pretty darn close to pure arb, but I get the distinction…. I do try to do it every now and then but you’re the king…. I do remember we both took advantage of the crazy opportunity in 3/23 when CUBI-F irrationally and totally imploded while F remained relatively stable (emphasis on “relatively”) but you did a much better job of execution than I did because I sold E first before buying F and I should have done the reverse. I, therefore missed the bottom on my second tranche on F. So there’s always room to learn from III’ers willing to share….
Throughout July I saw Balsam Hill ads on tv for their fake Christmas trees.
Fits the old Xmas in July theme.
Gary,
Your post reminded me (Totally off topic), but I saw Christmas stuff \displayed at hobby lobby this week (I don’t go there often, no idea how long it has been up).
I’ve shared “feeling uncomfortable” for three months.
“Foul weather Westie” maneuvered to 2/3’ds T’s, and short term BB’s (Portfolio A) ;
1/3 IG prefs & commons (Portfolio B).
Today is what I’ve braced for and expect more to come
Dow & SPX down > 2%
Portfolio A: up .001%
Portfolio B: down .0075%
Falling knife Chemours CC ….
Dropped from yesterday $23.29 Close to low of $18.77 on earnings miss
Picked up 300 @$19.10
Currently $20.05
Not for the faint of heart
Great Elm notes incoming GECCH
https://www.sec.gov/Archives/edgar/data/1675033/000119312524191551/d683612dn2.htm
For those who like to capture falling knives……
Chemours (CC) down 19% on earnings miss
8.875% senior BB MFAN 2/15/29 trading around 24.87 after ex-div reprice today
That’s about right. MFA-B overpriced at the moment so MFAN is the better choice today but that could change at any time. Only a couple pennies better than MFAO, which pays slightly more.
Nice alert. Check out MITN. Trading a few pennies under par today with a 9.5% coupon and 5 year duration.
theta-
MITN 9.5% (MITP too) and MFAN 8.875% are similar except for the coupon. Weird. Unrated. REITs. Recent issues. Same ex-date. A person might consider buying the better company, whichever that is, or skipping the whole high-yield REIT scene entirely.
I think these issues could be much cheaper some day, but if that day comes, I’ll be shopping for cheap IG issues. Meanwhile, today is today.
New Thread …. re Schwab Street Smart users …. any tips on the transfer over to the new platform.
Have any found a Live contact at Schwab of help.
Thanks, Jim
Jim, Might want to move this to brokerage section. I use my investment advisor who is great. You should have someone assigned to your account. Try them Or Schwab has lots of videos and information on this topic and others. I find using CHATGP or Google helpful. The schwab search on the website I have never liked. Good luck.
CRLKP, which a few here follow, reportedly reduced its distribution for the most recent quarter – one of the reps at a brokerage told me:
“After double checking with our clearing firm […] CRLKP […] informed the DTCC to pay at a rate of $0.301174 instead of the usual $0.328125.”
I didn’t think a change of the quarterly payment was possible for this security (although they can temporarily suspend distributions), so maybe some type of error has occurred….
WTFCP – Since the discussions here a week or so ago, both WTFCP and M have actually drifted down a few cents… Don’t know why but with the likelihood of a call being so high on P on 7/15/25 due to the reset terms (5 yr + 6.507) a few pennies makes a big difference in YTC. At 24.70 where a floor seems to be forming on P, the YTC = 8.50%…. WTFC’s quarterly seemed decent but right now the common is being hit a bit, but still, this looks pretty attractive imho……
Bought some today as I missed out when it was originally mentioned and watched it go higher.
2wr, thank you.
I’m tracking too. Heavy volume – 506K shs so far (avg daily vol = 51.4K shs).
Being a month-end trading day, I’m wondering if there’ll be a bigger drop just before the close.
Oddly, it pumped at the close. I wasn’t intending to day trade it, but it was juicy enough for 1 day gain. Wait for it to settle back down and get back in.
Part of the game theta. I agree with everything you’re saying. I have a mix of floaters and fixed. Most of the floaters I have are plus SOFR and 3 to 4% mixed of 3 months to 5yrs. Yes they can drop in value and have a capital loss but off what? I bought a lot of these floaters when they were cheap and some don’t even reset until 3 to 5 years out. Who knows what rates are then. A few are term or BB so they will eventually come back to par. Look at the talk here on III everyone is trying to rush and buy something they can get a 7% to 6% return on right now.
I’ve been slowly accumulating on the few cent drops but it does seem penny ante. Better than sitting in cash.
CHSCN is down 1.4% trading at 25.45 and CHSCM is down 0.75% trading at 24.86, yielding around 6.9% and 6.78% respectively. Both seem like good values.
Thank you. Already owned L and O. Started a position in M since it is callable soon and under par while CHSCN could be called and you take a hit. This is CHS though so nothing makes sense.
Likely end of month volatility for preferreds due to PFF like in the past. I suspect the CHS pfds will bounce back again starting tomorrow.
Mark, doubt there’s any new information, but Tim commented in the past few weeks on their quarterly report that their income was down from the year ago qtr.
https://innovativeincomeinvestor.com/chs-reset-preferreds/
Theta, even if some of the CHS preferred reset to a fixed rate the rate is still decent. But you need to keep the farming sector in mind overall. AMD just reported a 900 million drop in sales and they are equipment suppliers, fuel etc. I am not saying CHS is in any trouble. But I would say it would be to their advantage to fix the rates on these preferred and not let them float.
Charles M – My personal take specifically on the series 2 & 3 is that they will be paid at the stated fixed rate. That link I posted was for a great reference point so folks can come to their own conclusions.
Frankly I’m avoiding floaters at all costs at this point and have been unloading as much as I can the last month. Unless you can get a great spread to protect the yield but that often means giving up credit quality as well.
As you know, the worst part about floaters is if interest rates rapidly start declining, not only does your effective yield distribution decrease but the trading prices of these securities also can tank. On the flip side those higher quality 6%er fixed perpetuals will see a nice bump in price.
Theta I hope your right! I’m underwater on some UEPEP I bought last year. Be nice if they moved up in price.
theta-
You said, “As you know, the worst part about floaters is if interest rates rapidly start declining, not only does your effective yield distribution decrease but the trading prices of these securities also can tank.”
Do you have data to support trading prices tanking? Suppose a 9% floater is hit with 300 bps of rate cuts. The resulting 6% yield will be much better than any new issue and as good as many older fixed issues. Where will the market price it?
OTOH, are your fixed issues call protected. If FFR drops a lot, won’t there be a rush to replace expensive debt with cheaper?
Yours truly,
Clueless
I am pretty sure what theta was saying is that they do not float or ever will. They are already fixed. Done deal. That is how I understand it.
That’s my take as well.
To me, the last part of the sentence below makes it clear – “until they are redeemed”.
From their 10-Q, filed Jan 10th:”We will pay dividends on Class B Reset Rate Cumulative Redeemable Preferred Stock, Series 2 after March 31, 2024, and on Class B Reset Rate Cumulative Redeemable Preferred Stock, Series 3 after September 30, 2024, at the Fixed Rates until they are redeemed.”
I was looking at the composition of pfd ETFs for kicks in light of the Enstar plunge, one PFXF has a big chunk in these CHS pfd names. The biggest holding is the Albemarle pfd which was an eyeopener. These things as we know are driven by arbitrary indexes which just hold all sorts of ‘goodies’. Not in any at this time but maybe will look again.
unrelated; added to SR-A on the little selloff, added to LBRDP and MGRE in the Roth. So much ‘cash’ have to deploy a little. Noticed on the short end 3mSOFR has drifted down from a somewhat anchored 5.43% to 5.24%.. Powell says ‘September’ yields plunge! lol. Gold soars!! crazy world. Hard out there for us folks. Bea .. try to remember… https://www.youtube.com/watch?v=6-uJ5FLuL7k&t=3s
Bea, also added to SR-A this afternoon. In addition added to EP-C. Slim pickins out there!!!!
Bea-
A great song & performance –never heard of the singer. My oldest son had a part in THE FANTASTICKS about 45 yrs ago – small part for a child. Still have photos I took at the local production when we lived in NM. I do remember September.
Heavy volume on all the CHS preferreds. Someone getting out. I can’t find any news. About half of my preferred list dropped today, don’t make sense. I thought with the Fed almost promising to lower rates that these would be up today.
Can’t find anything anywhere.
from Quantum:Notes: Statement from the 10Q filed January 10, 2024 — January 2, 2024 per the terms of our Class B Reset Rate Cumulative Redeemable Preferred Stock, Series 2 and Series 3, and the Adjustable Interest Rate (LIBOR) Act, the stated rates of 7.10% and 6.75%, respectively, were fixed at 7.10% and 6.75% (the “Fixed Rates”), respectively. We will pay dividends on Class B Reset Rate Cumulative Redeemable Preferred Stock, Series 2 after March 31, 2024, and on Class B Reset Rate Cumulative Redeemable Preferred Stock, Series 3 after September 30, 2024, at the Fixed Rates until they are redeemed.
A lot of my preferreds dropped today also. Also, my munis were down .25% almost across the board.
As someone else reminded us, there were end of month last day of trading things going on today. I suspect, especially based on the large volume and end of day trades that that has more to do with the drops than anything else… I doubt there’s any more meaning to it than that.
Volume was very heavy for the CHSCM and CHSCN preferreds.
I suspect an end-of-month rebalancing, since today was the final trading day of July.
Added a small amount to my position in CHSCM, but didn’t catch the bottom 🙁
thanx MFZ grabbed a little CHS -M at 24.75, fine holding in the Roth at 6.75% for a while if needed; when I get a decent issue at a decent price in the RothIRA I am comfortable given the tax free to me element as well. I agree w Mark musta been a rebal of some ETF or fund, probably? same thing happened w SR-A whose volume was higher than normal so along w PigPile here, as noted earlier, I took a little more there too.
Barron’s indicates that citygroup issues new preferred at 7%
Any details on this new issue??? It seems kinda high for them.
It is $1000 par non-listed. Series DD cusip 172967PM7
https://www.citigroup.com/global/investors/fixed-income-investor-relations/capital-securities
The Citigroup issue, series DD, is traded over the counter like a corporate bond and isn’t traded on the NYSE. It is due to settle on Tuesday like the Morgan Stanley deal.
$1000 Par issue ….. trading over par so far .
Citigroup series DD $1000 perpetual, non-cum preferred issued 7/30/24
172967PM7, BB+/Ba1
7% fixed-reset, first reset 8/15/34 to 10-year yield + 2.757%
pays quarterly, 10 year resets
redeemable on any payment date on or after the first reset date
Looks to be trading above 102, making CY < 6.86%. Does anyone have better info?
Here is the prospectus
https://www.citigroup.com/rcs/citigpa/storage/public/Series-DD-Final-Prospectus-Supplement.pdf
Here is a complete list of all Citibank preferred issues including their CUSIPs. I own a 50% position in Series CC which resets after 5 years.
https://www.citigroup.com/global/investors/fixed-income-investor-relations/capital-securities
Regarding the proposed buyout of ENSTAR GROUP<
Edgar Database/ SEC sites describe the complete process to
date, in a recent proxy statement. That is the best place to read about the proposed transaction. **The only point I do not understand is if dividends will continue to be paid after all steps are completed. But I am not as knowledgeable as most folks on this
site. Thanks.
Morgan Stanley, 6.375% Dep Shares Non-Cumul Preferred Stock Series I
(Will not be rate resetting; staying fixed with original coupon)
Ticker Symbol: MS-I
Baa3 BBB-
Currently selling just under par with effective yield = 6.40%
where did you see that?
https://www.morganstanley.com/press-releases/replacement-rate-for-u-s–law-governed-u-s–dollar-libor-linked-
The following chart identifies the U.S. law-governed U.S. dollar LIBOR-linked preferred stock (and related depositary shares) and debt securities issued by Morgan Stanley that will not transition to the Replacement Rate by operation of law or otherwise. After the Cessation Date, dividends or interest on these instruments will continue to accrue at the specified fixed rate.
Morgan Stanley-Issued Preferred Stock (and Related Depositary Shares)
CUSIP
Description
61762V200
Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series E (and related depositary shares) (7.125%)
61763E207
Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series F (and related depositary shares) (6.875%)
61761J406
Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series I (and related depositary shares) (6.375%)
thanks
will have to decide how long these will go before being called. As you pointed out, the I is below par so no issue if it gets called and will probably
be last on the call list
theta-
Why did you post this now? Because MS-I is trading under par?
Exactly. The genesis of my trade alerts are when an investment quality grade 6%+ payer is trading down to par or less. I don’t have time to worry about amortizations come tax time or follow if an issue is getting called etc. so I keep it pretty simple in this regard. The most I pay is par. I know others have a different mantra, which is fine and nontaxable accounts also can be an area where it’s moot as well.
NFE declared preferred dividends for GMLPF. I don’t own.
ESGRP is in free fall, down 18%. Sixth Street will buy Enstar Group for a premium at $5.1B; deal is expected to close in 2025.
So, what is reason for preferred issues ESGRO and ESGRP to drop as a result of the sale of ESGR?
NVM – I see concern with issues delisting and going dark.
So, PREJF is already delisted to OTC and yields a paltry 7% ….I just bought 100 shares of ESGRO for $21.74 after hours for a much better yield of 8.05%, and I can’t see it getting worse than the PRE over reaction. At $21.74 easily had, this is ridiculous territory for ESGRO!
That isn’t de-listed.
De-listed means you can’t buy it on ANY market.
In the true form. you are correct Justin. Most respectfully and in good spirit, of all the preferreds that have been threatened to be fully delisted in the last 2 years, how many have actually gone that far, like Amtrust and PSB? It seems more end up like Athene and Triton, and still trade, or are called, from all appearances. Can someone give a ratio/track record of preferreds actually going fully dark vs still trading regarding all the takeovers involving preferreds in the last 2 years or so? Much appreciated!
Eating my words, lol! The announcement does say the shares willl be converteed to new shares, and the old D and E shares will be delisted from the Nasdaq. It does not definitively say whether the NEW shares will be listed or delisted or gracedully demoted to OTC…….sigh
Here is the paragraph on the SEC site which is linked to on this site. Bottom line, the preferred shares will not be able to be traded when all transactions are completed. I did not see any
information on dividends at that point.
If the Merger is consummated, the Ordinary Shares, the Series D Preferred Shares and the Series E Preferred Shares will be delisted from The NASDAQ Stock Market LLC (“NASDAQ”) and deregistered under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as promptly as practicable after the Third Effective Time.
Exactly Fan59. I like your logic. And by that reasoning and logic, you would really like AFSIM. There is a lot of metrics when evaluating companies. But in the end, go with highest yield or your gut instinct. This is Rida’s mantra as well.
ESGR is a $300+ stock, and their preferreds are rated BB+ by S&P, and are a far cry from the smoke and mirrors of ASFI. AFSI was controlled closely by Barry Zyskind and his inlaws, the Karfunkles. The difference is that a broad consortium of Sixth Street, Liberty Strategic Capital, J.C. Flowers & Co. LLC, and other institutional investors will acquire Enstar, which should favor a more equitable disposition of the preferreds than when the Karfunkles were able to inordinately determine the results due to their majority stake. Sure, I could be wrong, maybe the Enstar preferreds will indeed be fully delisted. I’m sure a lot of us will be watching to see just how the consortium says it intends to handle the prefererds. Goof luck to all!!
Fan59
Kindly see my comment above offering info from the SEC site.
The preferred issues will NOT be able to be traded, but I did
not see any info on dividends. May have missed it.
ESGRO and ESGRP have lost another 40 million in value today. Yesterday 73 million lost in value for a two day total loss in value of $113 million to preferred shareholders. Hopefully, all the security attorneys will take interest in this huge loss with CEO Dominic Silvester stating “We believe this is the best next step for our shareholders”. Losing 22 percent of your money in two days amounting to 113 million in losses is NOT “the best next step.” Where is the SEC?