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1,212 thoughts on “READER INITIATED ALERTS”

  1. This is for those that are interested in closed-end funds, which I feel more comfortable than many preferreds. I could not find a closed-end fund section to post, so drop it here. Sorry if anyone does not like CEFs.

    Symbol: DMA, started trading last Thursday and I bought some on Friday.

    NAV around $12, closed on Friday $8.27. It’s an old fund since 2012.
    Ex-div 1/24/22, payable 2/3/22 in the amount of $0.0604.

    “Pursuant to the Fund’s Dividend Reinvestment Plan (“DRP”), …… all dividends declared on the Common Shares will be automatically reinvested in additional Common Shares”. They do offer cash payment through check if you contact them. But I actually like DRP better.

    For more info:
    http://www.destracapital.com/strategies/closed-end-funds/destra-multi-alternative-fund

    1. My goodness – On first blush the question that comes to mind is why did you choose to get into this one??????????? On the surface it looks like DMA has not had a very good record over its first decade… nice theoretical purpose in investment strategy I guess but it sure is tough to see how they’ve executed well over the course of their existence… Are you saying that YOU started trading it on Thursday? What got you interested in it, the large discount to NAV? Cefconnect doesn’t seem to cover this one………

        1. But the fund’s been trading since 2012, hasn’t it? You don’t just see a fund begin its trading history at a 30%+ discount to NAV. Oh wait! I see the fine print now: “The Fund’s Since Inception return is based on the Fund’s class A Share inception date on 3/16/2012. The class A Share returns net of A share expenses were used from 3/16/2012 inception until the class I share inception date on 7/2/2014. From 7/2/2014, the class I share returns net of I share expenses were used thereafter until the Fund listing date and conversion into common listed share class on 1/13/2022.”

      1. Thanks 2WR. I always like caution opinions.

        It was not publicly traded until last Thursday, and cefconnect usually needs a few days of trading to register it.

        Yes, the reason I got in is the large discount to NAV. The price drop most likely was due to the new listing as a public fund as some original fund holders just dumped it when they got a chance. Reminded me a situation like WCCpA a while ago. (I could be TOTAL WRONG on this point as I did not spend time to research the history of the fund nor its shareholder structure)

        The NAV only increased about 3% in the last decade. So there is not much NAV appreciation in its history, I am fine with it as long as there is not much NAV erosion. The discount is large enough for me take a bite.

        One more point, other CEFs that are offered/affiliated with this company are all decent.

        1. Harbor – Digging around a little more, I found the Jan 10, 424B3, and I guess that pretty well clears up what was confusing to me:

          “Shares of the Destra Multi-Alternative Fund (the “Fund”) are expected to begin trading on the New York Stock Exchange (“NYSE”) on or about January 13, 2022 under proposed NYSE ticker symbol “DMA.” To facilitate the listing of the Fund’s shares on the NYSE, the Fund redesignated its Class A, Class C and Class T shares as Class I shares and subsequently eliminated all share class designations. Consequently, the Fund’s shares will be referred to as shares of beneficial interest or common shares (the “Common Shares”). Shareholders will not receive fractional shares but instead will receive a number of shares, rounded down to a whole number. Shareholders will receive a check related to the fractional portion of their shares. Such checks were mailed on or about January 5, 2022.

          “After listing, the Fund’s shares will generally only be available for purchase in the secondary market at prevailing market prices rather than at net asset value (“NAV”). The listing may also make the Fund’s shares more widely available. The Fund will no longer conduct annual repurchase offers for at least 5% and up to 25% of the outstanding Common Shares at NAV in connection with the Fund’s listing on the NYSE.”

          https://www.sec.gov/Archives/edgar/data/0001523289/000182912622000636/destramulti_424b3.htm

          You could be right about some original shareholders just bailing on first opportunity, but still, seems like an uninspired performance over the life of its prior iteration, ao may be worth a short term trading shot for the more active trader…. Personally, I’m moving on to the next idea, but thanks for bringing this one up..

    1. Thanks. I didn’t read the whole thing but looks like a par $1000 issue. Do you have the CUSIP?

  2. CRLKP….Ok, stuck at home so I mustered some initiative. TD confirmed they have not received payment. I emailed SP Plus and they responded quickly and they referred me to Bank of Mellon as trustee as they appear to have dropped the ball. If you want to join the BMC Club with me, send an email or phone call below.

    Below is the contact info for the trustee for that instrument at BNY Mellon. She – or one of her colleagues – should be able to assist you regarding your question.

    Kandy Williams

    Associate Client Service Manager

    BNY Mellon Trust Company, N.A.

    Corporate Trust

    4655 Salisbury Road, Suite 300

    Jacksonville, Florida 32256

    T- 904-998-4747 | F- 904-645-1921

    Kandy.williams@bnymellon.com

    Best Regards,
    Connie

    Connie H. Jin
    Senior Vice President, Corporate Development

    1. Ok, got a few updates. We neophytes just assume the company didnt pay or the brokerage screwed up… But there are other dumbasses involved whose purpose seems solely to screw things up. Bank Melon told me this…
      We released the clients payment to DTC on 01/03/2022 at 9:57AM EST and then DTC would be the ones to allocate the amounts to all the participants.
      So the problem appears to be at DTC or brokerages.

      1. So, if the money was released to DTC on the 3rd, that means they have had it for 11 days. In my “always assume the worst” thinking, what’s the likelihood that DTC is somehow using that money in an attempt to make more money? Hedging, swaps, playing the market, or just plain bank interest for a few days….

        Since this is a pretty small float, we’re not talking about an enormous sum of money, but if they can also do this with the likes of OCESP, WTREP, GMLPF, ….. we start getting into millions – especially if they can do it multiple times a year.

        I’m sure I’m just making this up, but where is the accountability? I could have had that money invested for the past 11 days and realizing my own gains. Instead, I’m being ‘robbed’ of the opportunity.

        Full disclosure – I only have about 40 shares of CRLKP, so I’m not actually being hurt by the delay, but I also own all of the others mentioned above, in varying amounts. If there is a 2 week delay, 4 times a year, that’s 2 months of investable time I have missed out on.

        1. Mark, A pure guess…. And I think Justin allueded to this a few weeks back on some OTC issues. The lady at Mellon asked me if I am paid by check or wire… I dunno, I just told her the brokerage pays me. So I bet some of these delisted ones may have some confusion on transfer processing. I bet its just sitting at DTC with no one doing anything about it.

            1. Martin, they got mine at .75 unfortunately as I set it up earlier.. Not getting any D buying love, ha,

          1. Groan.

            Sounds like DTC and all of the brokerages have an opportunity to point fingers at the other.

            1. Kuddos to Ms. Williams from Bank of Melon (trustee). She at least did work several times.. People keep these numbers saved below as your “bitchin line”.
              She gave them to me. …Presently Im on phone with TD again and they are contacting DTC again.

              I researched all I could on my end. Your next step would be to contact DTC. We released our funds to DTC but they do not provide us any information on when they allocate the funds to the participants. See below for contact information.

              CENTRAL PARKING FINANCE TRUST CUSIP 154787303
              Asset Services Client Support
              DTCC Tampa
              Hotline: 888-382-2721 option #4 | Direct: 813-470-1557

            2. Let me state the obvious. Dividend and interest payments that flow from companies through transfer agents to DTC to brokerages to individual brokerage accounts is a highly automated process. It HAS to be otherwise, it would literally take a semi-infinite number of humans to get the right money into the right hands.

              DTC has written procedures on how this all is supposed to work. And about 99.999% of the time, it all DOES work. The one exception I recall is when the basement of DTC flooded in 2012 due to Hurricane Sandy. The DTC literally had a basement full of paper bonds that got soaked. Took them a while to straighten that out.

              When a dividend/interest payment does not flow automatically, somebody somewhere along the way did NOT follow the instructions. And a human has to sort it out. And from this thread we know at least one party that messed it up. The payment to DTC should have arrived before January 3rd if the payment was supposed to be made on January 3rd. Don’t know if it was the payer or the transfer agent that messed it up.

              Bottom line is that when the automation fails, some human somewhere has to go through a stack of failed payments and do manual overrides to make them work.

              This is a relatively common, say 1%, occurrence with muni bond interest payments. And it is a relatively common, say 0.25% problem with one particular, large well known brokerage that shall remain nameless on corporate bond interest payments. I could go on but you get the picture. . . FIX the problem so the automated systems work if you want the problem to go away. Also note that the brokerage does NOT have any system in place generally to detect and solve the missing payment problem. Did any of your brokerages TELL you that the CRLKP payment was MIA? So you are on your own to keep track of all of these payments you are supposed to receive.

              1. After another TD call, it appears to be DTC needing a Terry Tate Office Linebacker clotheslining someone. TD said there are no funds awaiting as they checked. They said it is operated as a push through (my words) system where DTC pushed the money through, not TD pulling it through.
                So its screwed up somewhere at DTC. Probably will resolve itself at sometime. My mistake was getting involved. When the fingers point different directions that is what made me want to understand the process more. I hope someone called that hot line…I dont have the energy today to fight over $300 bucks as my phone ear is sore now…But come Tuesday Im sure I will be feisty again!

                  1. Greg, Im going to call that DTC hotline Tuesday. I forgot how many shares I have, its actually over $500 so that has my attention more than $300 I thought I had, ha.

        2. I think hanlon’s razor applies here. They are obviously not doing any of these: “Hedging, swaps, playing the market, or just plain bank interest for a few days….”

          1. Hmmmmmmmmmm, “Hanlon’s razor,” A term I’ve never heard before but sure sounds appropriate: “an adage or rule of thumb that states “never attribute to malice that which is adequately explained by stupidity.”” [WIKI] Good one!

            1. Somebody at DTC or TD needs a visit from “Terry Tate Office Linebacker”. You may not remember these commericals, but a fully uniformed 275 lb linebacker ran around the office clotheslining and pancaking any office worker not doing their job correctly. Office productivity increased greatly when Terry Tate was in the office.

        3. Have called Ocean Spray, Emera, etc they all transfer payment on time.

          In my dealings with the brokerages. If the auto-magic system does not work you have to create an investigation ticket.

          Don’t expect any response even though they will state they will call/write/smoke signal but magically 2-4 weeks later cash arrives Magically.

          Overall feeling is financial companies have cut to the bone all these back office positions. Very few of the remaining understand how the cash tossing machinery works when sand gets in the gears.

    1. Interesting there’s not even a hint in Use Of Proceeds of eventually using any part of proceeds to call SAK which can’t be called until June……I guess it’s just to early but with the 300 basis points spread, there’s sure a lot of meat on the bone for them to want to call ASAP…. may be a good nickel stacker candidate if it drops a bit……..

  3. BSA conundrum. BSA is called for next Tuesday 1/18 for $25 and accrued interest. Two different brokerages are showing that it went ex-dividend on 1/11 with a 0.32 dividend payable on 1/27. Yet, the price did NOT drop @ 25.28 so it appears that investors do NOT think it went ex.

    We had a similar situation back on MNR-C when brokerages showed it went ex, but then the NYSE changed the date after that fact.

    Confusing to say the least. . .

    1. Tex – Their 12/17 8k specifically says “On December 17, 2021, BrightSphere Investment Group Inc. (the “Company”) issued a notice for the full redemption of all $125 million aggregate principal amount outstanding of its 5.125% Senior Notes due August 1, 2031 (CUSIP: 10948W202) (the “2031 Notes”). The redemption is expected to occur on January 18, 2021. The redemption price for the 2031 Notes is $1,011.53 per $1,000.00 of principal amount of the 2031 Notes, which is equal to 100% of the principal amount, plus accrued and unpaid interest on the principal amount being redeemed to, but excluding, the date of redemption.” That translates to 25.2883 on the $25 note, so it seems pretty straight forward IMHO that there is no ex-div date because there will be no 1/27 interest payment.

      https://www.sec.gov/ix?doc=/Archives/edgar/data/0001748824/000174882421000064/bsig-20211217.htm

      1. As a follow-up Fidelity has already pre-posted proceeds for Jan 18 to account for call for BSA bonds I owned at price of $25 + .2883 in interest as expected. However, I did buy some on 1/13 which would settle on 1/18 and those have not yet been accounted for either way so for the moment they remain in my account… These were the only BSA notes I bot after the 1/11 date in question, so I guess this doesn’t really prove anything decisively either way re the purported “ex-Div” date, but if by chance I do not receive the .2883, I’ll report back.

  4. ENO called? After market price seems to imply that, but have not been able to find any confirmation.

  5. ECC note (2029) incoming:

    https://www.marketwatch.com/press-release/eagle-point-credit-company-inc-announces-offering-of-notes-2022-01-12?siteid=nbkh

    GREENWICH, Conn., (BUSINESS WIRE) — Eagle Point Credit Company Inc. (the “Company”) (NYSE:ECC, ECCB, ECCC, ECC PRD, ECCW, ECCX, ECCY) today announced that it has commenced an underwritten public offering of unsecured notes due 2029 (the “2029 Notes”). The 2029 Notes will be issued in denominations of $25 and integral multiples of $25 in excess thereof and are expected to pay interest quarterly. The public offering price and other terms of the 2029 Notes are to be determined by negotiations between the Company and the underwriters. The 2029 Notes are rated ‘BBB+’ by Egan-Jones Ratings Company. In addition, the Company plans to grant the underwriters a 30-day option to purchase additional 2029 Notes on the same terms and conditions to cover overallotments, if any.

    The 2029 Notes are expected to be listed on the New York Stock Exchange and to trade thereon within 30 days of the original issue date.

    Ladenburg Thalmann & Co. Inc. is acting as the lead bookrunner for the offering. B. Riley Securities, Inc., InspereX LLC, Oppenheimer & Co. Inc. and Wedbush Securities Inc. are acting as joint bookrunners for the offering.

    1. $75mm-$100mm base deal

      Coupon talk 5.25%-5.375%

      Pricing tomorrow (Thursday) after the close

  6. EPD has risen to $24 now. It was recommended here at $21. I bought at $21, and now have unloaded them. Today seemed like a good exit spot. Starting off the new year on owing the gov’t cap gain taxes with a bang. Steak dinner for 2 every Friday for a year.

    1. I was on that train talking about it after Camroc was pounding me about it forever and a day. Dang, its jumped quick, but I meant to own it for getting some “tax free” (ok, delayed) unit distributions outside of my tax free accounts. Im going to try to stick to the plan, but I dont want too, ha.

  7. Differences re the ARR-C ex-date (record date is Jan 15):
    Ex-date:
    1. Jan 14 (ARR website).
    2. Jan 13 (E*Trade and yahoo finance)

    From the ARR website:
    https://www.armourreit.com/stock-information/dividends/default.aspx
    Dividends (NYSE: ARR.C)
    Description: 7% CUM PFD C
    Current Year – 2022
    Ex-Div Date Record Date Pay Date Amount Frequency
    03/14/2022 03/15/2022 03/28/2022 0.14583 Monthly
    02/14/2022 02/15/2022 02/28/2022 0.14583 Monthly
    01/14/2022 01/15/2022 01/27/2022 0.14583 Monthly

    Absent confirmation, I tend to go with the company over the broker.
    Still, I’m not certain.

    1. mbg, take a look at
      https://www.finra.org/rules-guidance/rulebooks/finra-rules/11140
      (b) Normal Ex-Dividend, Ex-Warrants Dates
      (1) In respect to cash dividends or distributions, or stock dividends, and the issuance or distribution of warrants, which are less than 25% of the value of the subject security, if the definitive information is received sufficiently in advance of the record date, the date designated as the “ex-dividend date” shall be the first business day preceding the record date if the record date falls on a business day, or the second business day preceding the record date if the record date falls on a day designated by the Committee as a non-delivery date.

      Since January 15th is a weekend day, the ex-div is two business days prior – that is, Thursday January 13th. At least that’s how I read the rule.

      However, because the company explicitly stated that the ex-div date is the 14th, there’s some ambiguity here.

      1. Retired Sailor, I’m with you. Thanks.

        1. Jan 13 according to FINRA rules.
        2. Jan 14 according to the company.

        By the way, as of this morning, E*TRADE and yahoo finance still show ex-date as Jan 13.

        1. ARR.C is not the only one under a cloud of ex-div date accuracy this time around, but of course they may have complicated things a bit by their own press release. I know NEWT among others is one with a stated date of record being Jan 15, that seemingly was treated differently by different brokers this morning….. Fidelity accurately identified the ex-div date as today, but TDA apparently did not….. I wonder if you had outstanding GTC orders in to buy NEWTL today whether or not TDA automatically adjusted them? Fidelity did, but TDA shows today’s prices as being down instead of up, so maybe they didn’t. BTW, having played NEWTL, I’m making a mental note to pay more attention to this dividend capture strategy.. In the last 2 days I managed to buy NEWTL 5.75% due in 2024 at prices substantially (OK “substantially” measured in pennies) below par on a stripped basis…. easy money – even when considering the risk of another call potentially happening immediately there didn’t appear to be much risk. Too bad I didn’t get hit with more shares.

  8. RC – Ready Capital down 4% after launching stock offering

    https://seekingalpha.com/news/3787283-ready-capital-down-4-after-launching-stock-offering?messageid=2900&utm_campaign=rta-stock-news&utm_content=link-3&utm_medium=email&utm_source=seeking_alpha&utm_term=RTA+News+Smart

    Offering 6 mil new shares of common….. I noticed as an owner of RCA convertible note due 2023… not interested in being exposed to conversion, I would think that the new issuance keeps price low and conversion possibility which would only be forced if share price exceeds 18 something and that’s good… Guess it’s got to be a positive for preferred holders too.

    1. 2WR:

      RC was able to up-size the deal and sell 7 million shares at $15.55, a 3.25% premium to the $15.06 book value as of 9/30/21. Well done by this RC management team.

      Looks like you are safe on any potential conversion of RCA for now, since the conversion price was originally $16.67/share (which may have been adjusted once Sutherland became Ready Capital):

      “will be subject to redemption at our option, in whole or from time to time in part, on or after August 15, 2021, as described below under “—Optional Redemption,” if the last reported sale price of our common stock has been at least 120% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date on which we provide notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date;”

      And great news for preferred shareholders!

      1. AS I’m sure you’re seeing, that 15.55 is not holding and it’s trading around 15.33 right now, but I don’t think that’s all that unusual on these types of deals, but I agree, this has to be good for preferred holders and note holders…

        AS far as RCA is concerned, As of September 30, 2021, the conversion rate was 1.6146 shares of common stock per $25 principal amount of the Convertible Notes, which equals a conversion price of approximately $15.48 per share of the Company’s common stock. However RC can’t force conversion on RCA holders unless RC is trading over 18.57 or so for something like 20 out of 30 trading days… So with ’23 maturity on RCA, I think we’re pretty safe to still consider them N/C for now…. And if RC approaches 18.57, RCA ought to be up in price by then too, so hopefully I’ll have my sell button easily at hand before that day comes..

    1. Yes FINALLY received WTREP div after close 1/11 under header, Somers Group

      1. I got it in my TD also, but Vanguard is dragging as usual, probably be here in a day or two.

          1. Thanks, everyone, for working on the WTREP div.

            I got mine at E*Trade last night, at $0.48385 per share.

            1. mbg, is E*TRADE showing your position of WTREP as G94787119 with zero value?

              Before I call them and tell them that another E* client has received dividends but I still haven’t, I want to be sure I’m able to forestall the inevitable know-nothing claim that it’s no longer paying just because the rep doesn’t see a ticker.

              1. CRLKP and WTREP are just known to be a little late. If anyone is living paycheck to paycheck, these probably aren’t the best to own… but they do pay. Patience is the word. I have several thousand shares and am not worried that they have the ability to pay.

              2. Bur, yes.

                E*TRADE shows each of my two position of WTREP as G94787119 with zero value. The Platinum Team customer reps sometimes are good, but if whoever you get isn’t helpful, call your Relationship Manager, if you have one.

              3. I’m not mbg, but I also got my dividend at Etrade. It shows as the G94787119 with zero value on my Positions page and as ***Watford Holdings LTD on Transactions. I don’t know what the *** refers to.

                  1. Also, does everybody’s broker move the dividend back to 2021 for tax purposes?
                    I think my broker does it automatically when it happens. (I don’t own Watford, but they did it in similar situation 3-4 years ago.

              4. Bur, at VG it always takes an extra day to get my interest/dividends deposited if they are going into my margin account. The IRA’s which are cash will have the interest/dividends deposited on the the payment date. You might see if your brokerage does the same.

  9. WFCPRL conversion option? I got this from Fidelity today and its a hard no but what does this mean:
    Offer terms
    Latest Update:01/10/2022 11:20 AM ET
    Each Wells Fargo preferred share is convertible into 6.3814 common shares of Wells Fargo & Company (Cusip 949746101).

    Holders who convert are required to surrender their dividend payment when converting between the bond dividend record and payment dates.

    Fractional shares will be paid cash in lieu.

    1. Kitti, disregard, they send that out all the time. Its just a standing offer for you to convert per prospectus… Only someone wanting to be fleeced would accept it.
      ….You them an L share and you get back 6.38 shares of common stock.

      1. Thanks Gridbird, I didn’t realize they tried to catch you sleeping with a lowball conversion. I don’t understand why anyone would do this!

        1. I saw this offer in my account this morning as well and thought it was something new. Offered $355 for a $1420 share. It should be illegal. Crooks!

    2. Still no div from wtrep in my Schwab account! I know it’s been declared, and that it’s now a manual process, but this is ridiculous! Last quarter I received the wtrep div by manual process on October 3! Anyone else having this problem?

      1. This received by a friend sent from someone at Arch Capital:

        “Yes, the funds were transferred at the end of the quarter. I believe that there was an error with the DTC transfers which should be cleared shortly?”

        1. And from Somers Group:
          Hi XXXXXX, you should be see the funds in your account today. There was an issue with the DTCC notification causing a delay in the distribution of the dividned to the brokerage accounts.
          Best,

          1. W2R, Thanks for doing the WTREP dumbbell arm curling weight lifts here. I need to do some heavy lifting, also, but am too lazy….

            1. You don’t know how to do “lazy,” Grid, at least not on this kind of stuff…… It’s still too much fun for you……….ha

              1. Ha, not always, I have to rely on some of you to get the job done, as I cant just stand the thought of calling one of my brokerages and having the luck of getting one of the dumb agents who just waste both our time.
                If your energetic, call TD for me and ask where the hell is the CRLKP interest payment that was due 1/1? 🙂

                1. I’ll trade ya, Grid – I’ll make that call to TDA (and most likely get nowhere) if you’ll clue us in on the TECTP story and what got you into that one… Is it 15c-2-11 illiquid or something else? It looks like it’s now T Bank, unchanged from Techtonic as a credit after a merger with Integra Funding? I see mention of Tier 1 capital on QOL and that piqued my interest.

                  1. To be honest, I saw it when it first came out and just scratched the surface. And part of its genesis was dubious with my surface scratching. Then a fellow poster mentioned it here as a possible flip at $9.70 a year or so ago. I looked at its chart and saw a damn stable issue. Didnt suffer anywhere near the carnage other preferreds did during pandemic rout. That is my kind of stock!
                    So then I saw it has a legitimate bank and Lendingtree I believe had it as a top 100 US bank and then I read financials which look on upswing and pretty strong (its a bank and such so who really knows just by kicking the tires) so I jumped in after that post. Well the small intended flip became a long term core and continous add on. Heck I added a few hundred more at $10.52 just the other day, but it is by far my highest purchase point. The terms of the issue are excellent, and still meat on bone with 2 plus years call protection left.
                    The riskiest part of this issue that cant be discounted is its a private company. The only reason they SEC file is because of this tiny little preferred.
                    What if….they dont redeem it, but delist it? Well guess what…Expert market here we come… Say high to KTBA on your way down!

                    1. Twas I, Sir Grid of Bird that suggested TECTP.

                      I flipped it once and re-bought under $10. Still holding some and would like to buy more under $10, but the price has stayed strong.

                    2. Thank you NWGG! If memory served it did do exactly what you said it would do.. A few days later it headed to $10. A perfect flip candidate then. But I just kinda fell in love with it and just have kept ever since!

    1. Perpetual Subordinated Notes? That’s unusual, isn’t it??? I wonder why they choose notes vs preferreds if they’re going perpetual??? just to guarantee they’re issuing IG?

      1. BAMI is also a Perpetual Subordinated Note. Issued by UK finance subsidiary. I own some. Has not been a good ride so far.

      2. 2wr, Haven’t you noticed the capital raises have been very predictable for MANY issuers: Float common, then perps, then unsub debt. Also, cram in some new bank debt or refi some outstanding at the end. Guess how it may unwind if need be? Just watching ANY sport one can eventually figure out the game.
        The Fed has held the door open for immense recapitalizations and refis of balance sheets across the spectrum, now we will see who survives when the winter comes.
        The Tower to the Sky is defined in the chambers of a judge defined by the contract.

  10. Apollo ticker changes as of trading beginning 1/3/22

    APO-A is now AAM-A

    APO-B is now AAM-B

    1. Tex,
      Thanks for this. APO-A and APO-B are in a data base that I keep. Google sheets wouldn’t read them and I couldn’t find quotes for them elsewhere either. Now I know why.
      And looking now, AAM-A might hold some interest as a parking place. IG, callable 3/15/2022. At 25.28, YTC ~2.5%, so no loss if called. If it’s not called, with current yield 6%+, you do better. I don’t know much about APO’s propensity to call immediately when they can. Wary of the UBTI.

      1. Hello nhcoast;
        I’m also in the Granite State. I’ve just started looking at preffereds etc again after a while away.
        What is the UBTI ?
        Thanks in advance.
        Bill

        1. Bill,
          Unrelated Business Taxable Income. APO is a limited partnership. If it’s held in a retirement account, certain of the distributable income may be treated as taxable even though it’s in the retirement account. The tax is then taken out of the account, and there is no credit to your other taxes payable.
          If I understand correctly, you’re share of the UBTI has to be over $1000 before it is subject to tax. I got hit with it a few years back. As I recall, it was only about $60, but it is something to be avoided.
          You getting the snow today?

            1. ken, thanks much. I stand corrected.
              I was going back to my earlier experience. I have been out of APO since and was not aware of the change.

          1. Yes, we got about four inches. If you’re on the sea coast you probably didn’t get much.
            Thanks for the info on the UBTI. Probably not an issue to hold in a retirement account.

            1. Based on ken’s updated info, I think that’s probably right as to AAM-A, but at the $25.40 close today I’m not so interested.
              We got about 6”

    2. Thanks Tex –
      Looks like no change in Apollo preferreds as far as redemption, but what about the Athene preferreds, since they merged with Athene? Hard to find info on Apollo IR site……

  11. Meltup in ALTG-A, up 1.50 to 29.69, with a high for the day of 31.32! Not sure why and do not see any company announcements. This is a 10% coupon issue, so by definition it HAS to be high risk. Maybe investors are convinced it will pay its next .625 dividend on 1/31?

    We don’t own or have any orders in any accounts for it, but seriously consider taking a little off the table if we did own it.

    1. Tex, the company is a rapid aggregator is a fertile target field – much like WCC was. I took a big position in ALTG-A expecting a similar trajectory for this security as WCC-A.

  12. For any holders of 6.5% KREF+A out there who have been wondering why the preferred has been weak so far in 2022. Last price $25.17/share.

    KKR Real Estate Finance Trust Commences Additional 6.5% Preferred Stock Offering

    10:34 AM EST, 01/06/2022 (MT Newswires) — KKR Real Estate Finance Trust (KREF) said Thursday it began offering additional shares of its 6.50% Series A cumulative redeemable preferred stock with a $25 per share liquidation preference.

    The public offering led by Raymond James and KKR Capital Markets is a reopening of its prior issuance of 6.9 million preferred shares and will form a single series.

    KKR plans to use the net proceeds for asset acquisitions and general corporate purposes.

    1. That is the difference between a big issuance reopening and selling a bunch and small companies reopening a small float. PW has “opened” theirs up before and will soon or presently are doing again now in small doses over $26.

  13. GAB-J – Gabelli Equity Trust Announces Redemption of 5.45% Series J Cumulative Preferred Stock

    RYE, NY, January 06, 2022–(BUSINESS WIRE)–The Board of Directors (the “Board”) of The Gabelli Equity Trust (NYSE: GAB) (the “Fund”) authorized the redemption of all of its 5.45% Series J Cumulative Preferred Stock (the “Series J Preferred”). The redemption date is January 31, 2022 (the “Redemption Date”), and the redemption price is $25.132465 (the “Redemption Price”) per Series J Preferred, which is equal to the liquidation preference of $25.00 per share plus $0.132465 per share representing accumulated and unpaid dividends and distributions to the Redemption Date.

    https://finance.yahoo.com/news/gabelli-equity-trust-announces-redemption-172600588.html

    I don’t know why this announcement was made today as it was originally announced 12/17 by my notes

    1. Thanks, 2WR. I was going to post it too, but searched “GAB-J” in Reader Initiated Alerts and saw your post from last month.

  14. WTREP – I got this from a friend who got this response sent from Somers”

    Hi,

    The Company is continuing to pay dividends on the outstanding preference shares.

    The Q4 dividend was distributed at the end of December to our share transfer agent who then transferred to the DTCC for distribution so it may potentially be taking a few days to come through to individual brokerage accounts. The dividend per share amount was $0.48385.

    Best,

    1. Ya, I figured it would be later than last time being it was over holidays. I received it the 6th last time, so you can count on the brokerages to drag their feet a few here. I certainly have no angst waiting for divi, and for good reason. Its my biggest individual hold so I dont need to stress on that, ha.

      1. Here’s something to cogitate on: Did you do the calculation??? .48385 x 4 = 1.9354 annually….. If I’ve got enough fingers and toes, that amounts to 7.74% annually….. Shhhhhhhhhhhhh, don’t tell Somers…….. got any theory why? Maybe it’s right… I forgot about the 1% minimum for amount of LIBOR.

        1. Yes, that 1% minimum floor is nice, except the first few hikes dont help us, bummer. But, hey Im not complaining. The only time I will complain is if they redeem or my brokerage threatens to kick it off my account and I have to find paper certificates for it.

    2. Let us know how your broker treats WTREP for year end account valuation purposes. If they marked it zero you may have found a required minimum distribution loophole.!

      1. Don’t know what to make of this but they are showing it on my year-end statement with a “-” on it, not a “0” What I have always done in the past is report the end of year valuation of my IRA accounts without questioning their accuracy. That’s what I personally plan on doing this year as well…. It’s what is reported to the IRS….

  15. Sell your BPMP now? Spiked up on what is a convert into BP shares. Looks like both will pay divy before effective closing date.
    BP common is WAAAY low and in a good sector.
    I can not find a set conversion (.575 factor) date so considering it to be on the closing date in Q1 2022 into BP common.

  16. CIT-B If anyone owned CIT-B you now own FCNCO. It will have the same terms as original but the call provision will be extended to 1/4/2027 and it should end up receiving a higher credit rating than before as First Citizens Bancshares’ FCNCP is rated Baa3 vs CIT-B being Ba3

  17. Any idea why GUT-A is trading at around $27.00? it’s been officially redeemed .. December 31/2021 –The Board of Trustees of The Gabelli Utility Trust (NYSE:GUT) (the “Fund”) authorized the redemption of all remaining outstanding 5.625% Series A Cumulative Preferred Shares (the “Series A Preferred Shares’). The Series A Preferred Shares will be redeemed at $25.13671875 per share (the “Redemption Price”), which consists of $25.00 per share (the “Liquidation Preference”) plus $0.13671875 per share representing accumulated but unpaid dividends and distributions to the redemption date of January 31, 2022 (the “Redemption Date”).

  18. https://schrts.co/tNwrNFQz

    Something to be aware of – the 10 year yield has formed an inverse head & shoulders pattern and is sitting on the neck line. If it triggers, it has a target in the 3.50% area. Even if it triggers I don’t believe we can reach that target as it would kill the economy. We shall see.

    1. Oh no! And I was worried a Williams alligator was going to come along and snap the handle off my coffee cup. The trauma could cause a doji to rise on my neck or even worse a harami…. If it rises above my shoulders to my head, I could be a hanging man… wink wink

    2. Tim, I think all eyes are focused here!
      Looks like the first big tremor may occur near 2.5% as that will be a break above the multi-decade trend. We are still in the down trend on yields. Wave projection indicates next wave breakout over 1.75% area (we are close) to proceed to possible 3.0%.; a definite trend change. That will have to happen over many dead bodies since the system is manipulated. Faith and Confidence will be put on trial by real actions.
      The implications are inflation and eventually a weaker dollar if that intervention occurs. (No policy commentary implied regarding historical actions of our private Fed banking system, we all know the evidence.)
      I look at this every day and use no voodoo and a dead cat, but am a trend watcher which influences wider behavior.
      I recently revisited the idea of a segment of funds used to long/short/tight stop the ten or thirty year treasury. I know an individual who day trades this as an occupation from home. He has not convinced me yet that it is a way to make a LIVING, but as a long term, tax sheltered investment multiplier, it makes sense. Bonds still rule the investment world.
      Very best in the new year!
      PS: 2wr: a Williams Alligator is fairly esoteric trend technique, keep us informed!

      1. 2W – lol, I see you’re not a fan of technical patterns
        Joel – I appreciate your comments. Breaking above 1.77% will be important. I’ve been a technical trader for 25 years now and follow the waves of EW. Also. I trade mostly SPX, my favorite set up is still buying VIX spikes. ATB

  19. Another crazy high issue that we do NOT understand: BANFP. It is a 7.2%, $25 face issue that has been callable since 2009. It spiked up today to close @ 30.45, up 7.3%. And that was not just on a single say 100 share trade. About 4,000 shares traded >=$30, with the high of the day @ 31.22.

    It has not been called, but I still would NOT attempt to short it. Obviously if it was called, you would risk losing about $5.45 of principal. . .

    We have no positions or orders for it in any account.

    1. If they announce a call for $25 bucks, I will be jumping all over it to short…
      They can’t trade all the way to redemption at 30 bucks, can they?

    2. The bank is still small enough where those trust preferred shares can count as tier 1. Does that matter much? They bought out another bank which had trust preferred paying 182 basis points plus 3 month libor. They called those!

      I would guess insiders own a nifty amount of BANFP. No rush to call it. I wish there was a way to see insider ownership of preferred shares. Just a guess.

      I own a little bit of BANFP. I like to live dangerously.

      1. For many years I would constantly buy around $26 and sell over $27. It would happen quite often. But past couple years it shot north and stayed there so I havent got a chance to play with it recently.

  20. New Oxford Lane 2027 notes coming.
    $30mm base deal size, Yield talk 5.00%-5.25%, Pricing Wed, post close

    1. Isn’t that rate quite low compared to what they have outstanding and recently issued? It makes people who bought OXLCL a while back for a reasonable price absolute geniuses.

    2. Yet you can still buy the 6.00% OXLCO under par with over 3.5 years of call protection and a monthly pay.

      1. Yes, but please be sure you know the difference between the “term preferred” issues and the “notes.” The Notes are bonds which pay interest which is senior to the preferred payment, and enjoys 300% asset coverage requirements. The term preferred is subordinate to the notes and has 200% asset coverage. The notes are thus much better credit quality and should and do have lower yields. Keep this in mind when comparing the OXLC issues.

  21. The US Treasury and IRS released the final regulation on the transition from LIBOR. It will be published tomorrow 1/4 in the Federal Register.

    SUMMARY: This document contains final regulations that provide guidance on the tax consequences of the transition away from the use of certain interbank offered rates in debt instruments, derivative contracts, and other contracts. The final regulations are necessary to address the possibility that a modification of the terms of a contract to replace such an interbank offered rate with a new reference rate could result in the realization of income, deduction, gain, or loss for Federal income tax purposes or could have other tax consequences. The final regulations will affect parties to contracts that reference certain interbank offered rates.

    Better summary from law firm Cadwalader:
    https://www.jdsupra.com/legalnews/irs-publishes-final-ibor-transition-5239420/

    Full document from the IRS:

    https://public-inspection.federalregister.gov/2021-28452.pdf

    1. this is very interesting thank you! very large debt issuance is still coming w LIBOR as the reference or reset.. it is unreal after all this and what is coming. Vornado (VNO) did a big mortgage refi with fixed switching to base +LIBOR.. they just can’t let go I guess!!

    1. When did you buy your shares of ECCB? If it was some time after this Dec 1 announcement, it would have been after shares were alloted for the partial call, therefore, you would not have any taken from your account.

      1. 2WR –
        Purchased ECCB on 12/02/2021 expecting to lose 50%. Wish I had purchased more now 🙂 .

      2. Cool, I also bought around time Talkdollars did. Wasnt sure if I was losing any. I didnt as of today so all is clear right? 2WR, if you are looking for higher yield consider making some NFL season win total bets. Just cashed bigly yesterday on Patriots going over 9 wins yesterday. 🙂

        1. All I can say is I’ve owned ECCB for a year at TDA and my allotted shares to be called were hit the account on 12/31… Can’t speak for Fidelity and don’t remember the exact day my shares were allotted…And as far as NFL season win total bets, I’m going to have to get my dart throwing monkey a new page to throw at to participate in that.

        2. Hey Grid,
          different subject –

          have you heard anything recently about CNIGP transaction progress? I looked at their presentation a while back and the date had slipped out into 2022. I noticed the shares are drifting down to $29 again.

          Also, I got my payout today for the CBKLP I still had. I got “stuck” with them a couple of years ago when Schwab decided I couldn’t sell them unless I went and found a qualified buyer myself. Luckily, I didn’t have that many and my cost was below redemption price, but I probably could have made a little if I had been allowed to sell. Oh well, everyone wants to “protect” us…

          1. Hey Private…I remember your “unique situation”. I always thought that was so odd they impounded them on you. At least you have resolution with it!
            With CNIG last I read it was still muddling along in NY. It needs approval from PA, also. Still was anticipating first half of 2022. CNIG issued a 1% preferred stock to entity being merged into for needed cash. Im assuming that is a good sign as who in hell would want a 1% preferred stock? Its does have provisions to exit from it if merger doesnt go as planned though.
            There is some meat on the bone here if it goes through. But a very penal risk reward if it doesnt as remember though its convertible, its mandatory maturity price is just under $21. That is very penal. Things happen.
            Avangrid thought they had Public Service New Mexico in the bag after a year of acquisition filings and then got stunned with this ruling last month.
            …..”The New Mexico Public Regulation Commission (PRC) on Wednesday denied Connecticut-based Avangrid’s proposed $8 billion acquisition of PNM Resources, after a hearing examiner warned in November of reliability risks, the potential for higher prices and slower development of renewable resources.
            The denial was still unexpected, say observers, with 23 of two dozen intervening parties, including customer and clean energy advocates, supporting an agreement allowing the deal to proceed. PRC staff also agreed not to oppose the merger.”…….
            Sooo… I still have some of my shares but mostly the big cap gainers I kept to avoid short term cap gain taxes on.

          2. Private…. I did a look see and things are starting to heat up on the negotiations… Recommendation to commission is to make changes to proposal and reject as currently constructed.
            Staff recommends that the Commission not approve the Transaction as it is currently structured. Based on Staff’s examination of the filing, we recommend the Commission only authorize the acquisition and Transaction if Staff’s recommended modifications and conditions are adopted by the Petitioners, as discussed throughout the document and as listed and summarized in Attachment 1.
            https://documents.dps.ny.gov/public/Common/ViewDoc.aspx?DocRefId={DF6226EE-8FF0-4465-BDFB-460A50FFEC6F}

  22. Anyone have an opinion on IMBIL being down so much. I believe they completed the acquisition of the German company which was the main reason for the notes’ issuance. Anybody buying in the 21’s? ***HAPPY NEW YEAR***

    1. Eddie; iMedia does not have the strongest balance sheet by any means. I established a position at the IPO in the $24.40 range. It does have a finite redemption date of 2026 which is a positive factor for me. I view it as a hold for now. I have a full position so am a little gun shy about adding more even at this current level. I will wait to see how the quarterly earnings unfold over the next year or two.

  23. JBK took a hit late at the end of the day on 12/30. Last trade at 26.62 from somewhere near 30.00. Does anyone have any information? Thanks for your help.

    1. JBK is a corporate trust that has 6.345% Goldman Sachs bonds underneath, so Goldman is the one you should be keeping your eye on. (unless this is one of those delisting deals like KTBA)
      Last SEC filing was 4 months ago, so who knows.
      It isn’t very liquid, this could be a big investor getting out.

    2. Most likely just thin liquidity due to light holiday trading. People are on vacation so not as many bids as usual and a seller appears to have dumped a relatively large amount as a market order into an illiquid market. Dumb seller, lucky buyer.

  24. GDV-G finally called for real: January 1 ,2022. giving 30 days notice despite being able to give as little as 15.

    NOTE: GUT-A ALSO CALLED for 1/31 @ 25.13671875 but I do not yet see a notice on GGZ-A as expected.

    Gabelli Dividend & Income Trust to Redeem Its Outstanding 5.25% Series G Cumulative Preferred Shares
    BY Business Wire
    — 4:15 PM ET 12/30/2021

    RYE, N.Y.–(BUSINESS WIRE)– The Board of Trustees of The Gabelli Dividend & Income Trust ( GDV) (the “Fund”) authorized the redemption of all remaining outstanding 5.25% Series G Cumulative Preferred Shares (the “Series G Preferred Shares”). The Series G Preferred Shares will be redeemed at $25.127604 per share (the “Redemption Price”), which consists of $25.00 per share (the “Liquidation Preference”) plus $0.127604 per share representing accumulated but unpaid dividends and distributions through the redemption date of January 31, 2022 (the “Redemption Date”).

      1. I see GUT-A quoted still at 26.05-26.50 with last trade at 26.23. Anyone still owning, here’s your chance. Sell now at over $26 or wait until Jan 31 and get $25.14…. Hmmmmmmmmmm what to do what to do???? And I thought I had scored bigtime by selling my GDV-G at almost 2¢ over the call price…

        1. read your weekend posts this morning on gdv-g, I decided to sit tight when doing my year end planning week or so ago. Better to be lucky than good. Net me $138.02 in long term gains and qualified dividend both in tax year 2022 Steak dinner starting of the New Year!

        2. GUT-A is still at 26.45…. Full call in 25 days or so, at 25.13 so if you own it, now is the sell, (or if you want to short it, sooner or later the market is going to realize that like Wiley E. Coyote, no matter how fast you move your legs, he is still over the edge of the cliff, and down he will go…
          I think my short sales were all of the activity so far today….hahahaha.

          1. Talk about snoozing – holders have been lulled to sleep for so long with it way past call date.

          2. Justin, where did you short it? I tried to short on Friday and Monday at Schwab and it said there were no shares available.

            Can’t believe it’s still trading like this 3 days after a call.

  25. FPI – https://www.businesswire.com/news/home/20211229005339/en/Winstead-Trial-Lawyers-Win-Dismissal-in-Federal-and-State-Courts-in-Baseless-Short-and-Distort-Case

    Winstead Trial Lawyers Win Dismissal in Federal and State Courts in Baseless Short-and-Distort Case
    December 29, 2021 03:48 PM Eastern Standard Time

    DALLAS–(BUSINESS WIRE)–Winstead PC, a leading national law firm, today announced that its client, Sabrepoint Capital Management, a Dallas-based hedge fund, was successful in both having a case brought by Farmland Partners, Inc. (NYSE: FPI), dismissed and having the court grant a motion for summary judgment.

    The details of the case are as follows:

    Farmland Partners, Inc. (FPI) was the subject of an article on the website Seeking Alpha.
    FPI sued the author of the Seeking Alpha article in Colorado.
    FPI later added Winstead’s client Sabrepoint Capital as a defendant, and named two of its executives, asserting various claims all based on the allegedly defamatory article.
    Sabrepoint moved to dismiss the Colorado case for lack of personal jurisdiction. The court agreed and found that Sabrepoint was not responsible for the Seeking Alpha article, did not conspire with the author, and the author was not Sabrepoint’s agent.[1]
    FPI then sued Sabrepoint in federal court in Dallas, only to have its complaint dismissed for lack of subject-matter jurisdiction.
    FPI then refiled in state court in Dallas County.[2]
    Sabrepoint moved for summary judgment based on collateral estoppel, arguing that the factual issues were already decided against FPI in Colorado.
    Sabrepoint also moved to dismiss the case under the Texas Citizens Participation Act, arguing that the Colorado court had already determined that the article was not attributable to Sabrepoint.
    Following a November 12, 2021 hearing, the court agreed with Sabrepoint and granted the motion to dismiss and the motion for summary judgment.
    The Texas Citizens Participation Act entitles Sabrepoint to recover its attorney fee

  26. If anyone owns bank preferred LEVLP…. Level One is in process of being acquired by First Merchants. The issue will not be subject to change of control, as First Merchants will assume it and give it a new ticker symbol. Eventually they stated the new ticker subject to regulatory approvals and vote will be FRMEP.

    In addition, each share of 7.50% Non-Cumulative Perpetual Preferred Stock, Series B, of Level One, with a liquidation preference of $2,500 per share (“Level One preferred stock”), will be converted into the right to receive one (1) share of a newly created Series A preferred stock of First Merchants having voting powers, preferences and special rights that are substantially identical to those of the Level One preferred stock (“First Merchants preferred stock”). Likewise, following the completion of the Merger, each outstanding Level One depositary share representing a 1/100th interest in a share of Level One preferred stock will become a First Merchants depositary share and will represent a 1/100th interest in a share of First Merchants preferred stock. The depositary shares representing a 1/100th interest in a share of Level One preferred stock are currently listed on the Nasdaq Global Select Market under the symbol “LEVLP.” The depositary shares representing a 1/100th interest in a share of First Merchants preferred stock are expected to be listed on the Nasdaq Global Select Market upon completion of the Merger under the symbol “FRMEP.”

    1. Almost guarantees that will be called in 2025 in my opinion. 12%ish total 3 year return if bought around 27. If not called there could be worse yields out there. First Merchants does not seem very preferred friendly with none outstanding.

    2. https://www.moodys.com/research/Moodys-says-First-Merchants-acquisition-of-Level-One-Bancorp-is–PR_457786

      05 Nov 2021

      New York, November 05, 2021 — Moody’s Investors Service, (“Moody’s”) said that First Merchants Corporation’s (First Merchant, Baa1 stable) planned acquisition of Level One Bancorp, Inc., parent company of Level One Bank (together Level One), a full-service commercial and consumer bank headquartered in Farmington Hills, Michigan, has no immediate ratings implications. Moody’s also said that the acquisition does not alter its assessment of First Merchants’ asset risk, profitability and liquidity. However, Moody’s considers the acquisition as a credit positive for First Merchant because, if completed as planned, it expands the bank’s scale and footprint in its existing market, marginally improving its market share and helping First Merchants to better compete in the highly competitive Midwest market.

      1. FC, based on 2WR post, this would be a tiny $25 million Baa3 ish preferred. So I bet ya got a safe bet on a 2025 call. I have traded this a few times especially on IPO run out. It caught my eye yesterday as the almost 5000 share volume dump dragged it very briefly below $24. I could only to buy my shares a bit over $26 on way back up.

    3. By my calculations, purchasing at $26.75 would get you a 5.38% YTC through the 8/25 expected call.

      1. Chris, I stripped out 30 cents of accrued and got 5.7% on calculator at $26.75.
        I bought mine 30-40 cents cheaper the other day though mine is a bit better.
        I admittedly trade this more on price movement and knew about merger. But I didnt realize (laziness, shame on me) until 2WR posted it, how strong acquiring banks credit rating is. This becomes a default 7.5% IG Baa3 preferred. Very little chance of this being around after call date.
        A very presumptuous assumption of a completed merger though. Who goes ahead and pre announces ticker symbol of a preferred that hasnt been acquired yet? Of course with small banks being what they are, the majority of shares are already in the fold before the vote is ever taken though.

        1. Grid – Fidelity calculator tells me the accurate amount to be stripped out = 25¢ Not a big deal difference though

          1. The calculator is dumb… I use 3rd grade math as it appears more accurate. It went exD Oct. 30, so its accrued 2/3 rds of next divi already (~60 days of accrual) so that is about 30 cents of the .4688 per quarter.

            1. It’s because it’s dumb that it’s accurate, Grid….. You know better than to be calculating accrued from the ex-div date…. Conventionally it’s from payment date 11/15 not ex-div date so unless this is a special case spelled out in the prospectus (which I haven’t bothered to check because it’d be so unusual) you’re talking about 49 days worth of accrued approx, not more….

              1. I do my own special math I guess, 2WR. If you capture the money its by exD, so I accrue it out from there. I like to strip it all out and then establish it as a monthly payer so I can tell if its correct by eyeball. As sometimes those things are goofy.

                  1. Your example is precisely why I do what I do. I will get paid when I get paid, but its irrelevant if not bought before exD. Some are 3 days others are 15 or even 30. But also there is the opposite I just did today. I waited until exD date today, to sell at exact price it was bid at yesterday pre exD. I pocket the divi and still sell at same price as I knew the bid wouldnt change…

                    1. Which of course is an example of playing the div capture strategy to a T… Nice one!

                    2. Today is the ex dividend on a REIT I own. It states it will be paid on Jan 14 to those of record on 12/31. If I sell today will I get the dividend or do I have to hold until 12/31. The position is WPC.

                    3. You can safely sell today. You get the div. You have to buy before the ex-div day to get the div. A buyer who purchases on ex-div does not get it.

    1. schwab’s streetsmartedge says it dropped over a dollar today (from $8.50 to $7.39).
      I am only seeing trades down to about $7.75, but I am out of the office, so I can’t see more trading granularity. Still a big drop.

      Looks like a big volume dump (thousands of shares) just before closing. Last trades look like they were back up to $8.

      1. My concern for this issue was unit holders were fighting back from Ergons offer to buy out. They were giving the preferreds a very generous offer (as they owned 60% of the preferred float already) and common unit holders felt they were getting the shaft. It worried me enough a few months ago to exit as I didnt know if the offer would be adjusted to better serve the common at the expense of the preferred. I have no clue if this would ever be in the works or not, but it scared me off enough to leave. I thought about buying the common, but just never got around to doing more than thinking so far.

      2. Re. BKEPP

        From Think or Swim, there were two large block trades in BKEPP at the end of the day. One with 15k shares and a second with 10k shares. The current bid ask is $8 – $8.50 with small volumes (300- 600 shares).

        I’m still long (sold ~10% of my holdings earlier) and anxious. Given the timing of the large block trade, it could be a fund with a small holding or someone aware of a revised offer.

  27. WASHINGTON (Reuters) – The U.S. Securities and Exchange Commission on Wednesday charged Medallion Financial Corp and President and Chief Operating Officer Andrew Murstein with allegedly engaging in fraudulent schemes to boost the company’s stock price, the financial regulator said in a statement.

    MBNKP @24.69 down 1.80 from 26.49

  28. Guggenheim Closed End Funds

    Newly listed GUG trading at 2.4% discount versus GOF trading 10% premium

    1. On a VERY cursory first look…GOF appears to be fixed income based, while GUG appears to me a balanced fund?

      How can GOF be a five star Morningstar fund with rather poor performance this year?

    2. Thanks, EB – This brings up a strange point about so many new CEFs – why is it that it never seems to be stressed anywhere that these have a written in expected “maturity” to them????? Places like cefconnect don’t even mention it in Fund Basics and SA authors don’t seem to feel it important to mention the limited term aspect in most articles…… Re: GUG, “the Fund intends to dissolve as of the first business day following the twelfth anniversary of the effective date of the Fund’s initial registration statement, which the Fund currently expects to occur on or about November 22, 2033….” To me this is an important feature even if they have the potential ability to extend the date… I seem to be in the minority on this point..

      1. Isn’t this basically the poor man’s target date fund, like you see 401K accounts riddled with and aimed at people born in 1968, to make Gabelli a little richer selling more of his shitty funds?

        1. True – some are target term, some are not… GUG in particular doesn’t appear to be a target term but again, that only confirms my point… From what I understand most newly issued CEFs have a specified initial intended liquidation date, be it a target term or just a term term…. Yet this aspect strangely never seems to get stressed in any writeups about them and imho it’s important enough to need being highlighted.. maybe it’s just me………

  29. HOVNP is restoring its non-cumulative dividend.
    ” We expect to continue our trend of improving our key credit metrics in future periods and are pleased to announce our Board of Directors approved reinstating a $2.7 million dividend payment on our preferred stock payable in January 2022,” said J. Larry Sorsby, Executive Vice President and Chief Financial Officer.”

    1. There is an older discussion on the subject in the Reader Initiated Alerts section started by me if you are looking for more oppinions

  30. AATRL – OK, the “experts” strike again???? Over 300k shares trade in 3 blocks +14% in 56.5 range? We can’t trade this even if we wanted to anymore, can we??? Thanks, SEC..

    1. Hi. You cannot trade AGRIP ( AGRIBANK) , a GSE, Government Sponsored Enterprise. THAT is a very dangerous issue for private investors to own, don’t you know; Of course , the EXPERTS can trade it, because they know better.

  31. ksu- was called due to the merger with the Canadian railroad. $USD37.50 will paid for each preferred share owned. It just goes to show that nothing is uncallable even though we sometimes think of these as annuities that we can get the principle back on if we want.

    If this was already posted elsewhere by someone else, my apologies.

    1. I was sad to see this go. The float was small so I could never get more than a few hundred at a time and trading was rigged at times, but this was a fun one. I knew KSU was buying the shares above $30 even before merger talks kicked in. It was just a sad little 4%, $25 par issue. But once the first merger was basically denied I was able to get in the $33s and flip multi dollars higher a few times as it was a given CP was gonna get it. Finally after a few sells above $37, I was never able to buy again that was worthy of a flip buy.
      This was a unique situation. KSU couldnt redeem it, but something was buried deep that allowed it on a change of control. Whatever the reason $37 was a very generous buyout price.

      1. I agree Grid, that was a good price. Buyouts and Mergers are one of the ways uncallables become extinct as you know. In fact, it wouldn’t surprise me at all if at some points in history there have times when companies have created shell companies for the express purpose of having the shell company buy the originating company out just so they could get the preferreds off the books.

  32. AMERICAN FINANCE TRUST TO ACQUIRE A $1.3 BILLION PORTFOLIO OF POWER, ANCHORED AND GROCERY CENTERS Expected to be Accretive to AFFO Per Share Immediately Upon Closing Acquisition Combined with Disposition of Large, Non-Core Office Asset Enhances Portfolio Quality, Size and Scale to Drive Future Growth and Value Creation Company to Rebrand as “THE NECESSITY RETAIL REIT | WHERE AMERICA SHOPS” Combination of Pandemic-Tested portfolios focused on Necessity-Based retail comprises 29 million SF with $382 Million in Annualized Straight-Line Rent in 2021(1) PR Newswire
    NEW YORK, Dec. 20, 2021 /PRNewswire/ — American Finance Trust, Inc. (Nasdaq: AFIN) (“AFIN” or the “Company”) announced today that the Company, through its Operating Partnership, entered into a definitive agreement to acquire a portfolio of 81 Multi-tenant Power, Anchored and Grocery Centers2 (the “Transaction”) from certain subsidiaries of CIM Real Estate Finance Trust, Inc. for $1.3 billion, representing a 7.19% cash capitalization rate3. The Company also announced that it entered into a definitive agreement to dispose of a non-core portfolio of three office buildings leased to Sanofi S.A. for $261 million, representing a 6.38% cash capitalization rate and a $10 million increase from its original purchase price. Both transactions are expected to close during the first quarter of 2022 and the Company expects the net financial impact of the transactions will be immediately accretive to AFFO per share.
    Name Change

    In connection with the Transaction, the Company will change its name and be rebranded as “The Necessity Retail REIT Where America Shops” and expects that its Class A common stock (“Common Stock”), 7.50% Series A Cumulative Redeemable Perpetual Preferred Stock (“Series A Preferred Stock”) and 7.375% Series C Cumulative Redeemable Perpetual Preferred Stock (“Series C Preferred Stock”) will begin trading on Nasdaq thereafter under the ticker symbols RTL, RTLPP and RTLPO, respectively. The Company’s Common Stock, Series A Preferred Stock, and Series C Preferred Stock will continue to trade on Nasdaq under the symbols AFIN, AFINP, and AFINO, respectively, until the closing of the transaction.

    1. I wonder who thought up this bright idea??? The Necessity Retail REIT????????? Multi-tenant Power, Anchored and Grocery Centers????? Seems like not a great time to be emphasizing these aspects…

      1. 2WR:

        A stupid name change for AFIN, but a good acquisition cap rate on the CIM portfolio.

        AFIN was already a higher leveraged company, and it looks like they will be taking on nearly $1 Billion more in debt to acquire this portfolio.

        Not the best news for the AFINO and AFINP preferreds (I own both), but they should continue to be safe. Don’t see the common AFIN doing much over the next few years. They really should consider reducing the dividend to retain more cash flow, as nearly all of their operating cash flow gets eaten up by cap-ex, common dividends, and preferred dividends.

        10.7% yield on that thing? Wow.

        1. CIM preferreds up a little on the news but not CIM common. Reflecting that this is a conservative move for them.

          1. Martin, I think that CIM Real Estate Finance Trust, stock symbol CMFT, is selling the properties, not to be confused with Chimera Investment Corporation, stock symbol CIM. It is confusing with the company names and stock symbols.

          2. Martin,

            Were you referring to CIM-A, B, C and D? The Chimera (CIM) mREIT’s preferreds?

            CIM Real Estate Finance Trust’s ticker is CMFT:
            PHOENIX, December 20, 2021–(BUSINESS WIRE)–CIM Real Estate Finance Trust, Inc. (“CMFT”) announced today that it has entered into an agreement to sell all of its shopping centers to American Finance Trust, Inc. (“AFIN,” NASDAQ: AFIN) for up to $1.27 billion in total cash …”

        2. I’m trimming back on some risk issues. Sold all my AFINO at 26.03. Not bad for an issue originally bought below par just for a dividend capture early in 2021.

      2. Necessity Retail (grocery, pharmacy, auto parts…) was a thing before COVID and is an even bigger thing now. When all the outlet stores, clothing stores, gyms and fast food shops were locked down, the necessary stores were still open and paying the rents. I’ve been invested in these type of properties directly since 2014 and my income continued unabated through the darkest days of COVID lockdowns. It seems like a great idea to me to provide a REIT comprised of these properties to regular investors looking for a more reliable offering. I’m not sure what “Multi-tenant Power, Anchored and Grocery Centers” are, but if they are designed to generate “distress-proof” income, I say more power to them.

      3. Actually for retail REIT – you want to emphasize Necessity retail – like grocery stores, drug stores, etc.

        I have owned a few focused mainly on these for years. Picked up more when they were thrown out with everything else at the start of Covid that have done very well. But these stores remained opened, kept paying rent, etc. People always need to eat and need medication.

        This is exactly the type of retail that should be emphasized

    2. Googled the term- Power, Anchored and Grocery Centers, it exists as a
      description. Glad they aren’t taking that as a name. How about a REIT
      for Un-neccessities?
      It just gets weirder.

  33. BRG – Bluerock Residential Growth REIT To Be Acquired By Affiliates of Blackstone Real Estate In $3.6 Billion Transaction

    https://finance.yahoo.com/news/bluerock-residential-growth-reit-acquired-140000793.html

    Shareholders to Receive $24.25 in Cash plus Shares of Bluerock Homes Trust, Inc., BRG’s Single Family Rental Business Spin-Off, with an Estimated NAV of $5.60

    NEW YORK, Dec. 20, 2021 /PRNewswire/ — Bluerock Residential Growth REIT, Inc. (NYSE American: BRG) (the “Company”) today announced that it has entered into a definitive agreement with affiliates of Blackstone Real Estate (“Blackstone”) under which Blackstone will acquire all outstanding shares of common stock of BRG for $24.25 per share in an all-cash transaction valued at $3.6 billion (the “Acquisition”).

    1. It looks like unquestionably this BRG acquisition would trip off Change of Control provisions in BRG-C and D…. I think in both cases, the holders have the right to put the shares back to the company if it does not elect to call. On first blush it looks like D’s provisions might be a little bit more complex than C which would only make it that much more likely that company will elect to call.. I own C.

      1. I had a bit over 1000 of D series. It had been a recent good hold and small juice flipper, but I dumped mine this morning between 25.55-60. Time tomove on, now.

        1. Grid:

          A little surprised you gave up the BRG+D dividend that will go “ex” in two days?

          These two BRG preferreds seem like a decent play to hide during the latest media-crazed COVID wave, as both of them should be “anchored to $25” until next Spring.

          This merger shows you what Blackstone thinks about where apartment rents are going. Up, up, and away! Never thought this ultra-leveraged REIT would be bought out at this kind of massive premium. So much institutional money out there looking for a home.

          I own two apartment REITs that have skyrocketed higher this year and have no interest in selling now.

          For those interested, the $3.6B acquisition price almost certainly includes all of BRG’s public and private preferreds being redeemed (BRG has a complex balance sheet), since there are only 26.4 million common shares outstanding and $1.35 Billion of mortgage debt. Those two sum to $2 Billion.

          1. Rob, your last paragraph pretty much answered it. Just time to move on. The preferreds dont get the upside that commons do as you know. I already got bids in on something else I am eyeing from the proceeds. 🙂

            1. I have the low bids on the C and D preferreds for the 2-day flip though I don’t expect to get the, at that price.

              1. Martin – Did you complete your div capture on BRG-C and, if you did, what amount did you capture if you don’t mind me asking???? On the surface, this looks like another nickle stacker kind of idea, right???? A single steak dinner or two??

                1. Never got a fill with my lowball limit orders. My nickel stacking is about getting a good price or walking away.

                  1. Thanks, Martin… The point I’m trying to establish is when you play the div capture strategy continuously, are you entering into each one expecting to capture the entire dividend or more or do you enter into it expecting to only capture a percentage of it, and a percentage that could be even less than 50% of the entire div??? As you probably know, I’m active buying called bonds as a strategy for having idle cash at least earn something but I’m thinking comparatively speaking, dividend capture can probably accomplish the same thing with larger spreads and a shorter time span even if the capture is for just a low percentage of the total amount of the div…

                    1. No fixed goal, just whatever I can get. Getting the entire dividend is rare, half the dividend is a good result, 10 or 15 cent gain is surely better than not playing, and sometimes I can’t turn a profit. I’lI trade on price movement any time I can though there seems to be more opportunity at div capture time so I specifically look for them.

                    2. Thanks MG – I’m going to have to try to get more active in trying this just for kicks…. and thanks for the acknowledgement on what one can do on Fidelity Active Trader Pro to set up an upcoming x-div calendar of your own…. That helps a lot……..

    2. Any idea what will happen to the 2 outstanding preferreds. They were not mentioned in the press release that I saw. I believe they are currently callable and would also be callable after a change in control. I assume they will be called since they have relatively high coupons (over 7%). They are both trading above $25. I would appreciate any thoughts since I own the C.

  34. Previously I have posted lists of preferreds/babys at risk of significant loss if they were called on their first call date. The lists were based on purely mechanical calculations with no judgement added. Since the first list was published last August, I show that nine issues that were listed have been called or are no longer trading.

    AGO-E, Called 9/27/21
    AGO-F, Called 9/27/21
    ASRVP, No longer trading
    BPOPN, Called 11/1/21
    DUKH, Called 10/7/21
    HBANN, Called 10/15/21
    PUK-, Called 12/23/21
    PUK-A, Called 12/23/21
    VNO-K, Called 10/13/21

    If you sold any of these before they were called, you came out way ahead with several of them having losses >=$2.00/share on a $25 call.

    I have continued to refine the data based on previous inputs and present the latest list. It is much shorter with 23 issues down from the original 49. Since nine of them have been called, it means that the price of ~ 17 have fallen to where they are not at such high risk. For today’s risk, I have updated the criteria based on previous inputs to show issues that are at risk of losing >=4% of the par price. This is the same as saying >=$1.00 for a $25 par issue, but makes the calculation the same regardless of par price. I have omitted all issues that are convertibles or have suspended dividends since they might present misleading data.

    The format of data is:

    Ticker, call price, years to first call date, % of par at risk, text on what the status is

    Note that all issues that are past their first call date show up at 0.09 years which is 30 days, under the assumption they would have to give a 30 day call notice.

    WVVIP 4.15, 0.09 years, 58.2% , Company says they will NOT call it, also wine privileges
    UEPCO 110, 0.09 years, 45.6% , Immedialety callable
    IIPR-A 25, 0.84 years, 26.1% , Callable 10/19/22
    JBK 25, 0.09 years, 24.3% , Not callable
    HAWEL 21, 0.09 years, 19.1% , Immedialety callable
    CNTHP 51.44, 0.09 years, 19% , Immedialety callable
    HAWLN 21, 0.09 years, 18.1% , Immedialety callable
    BANFP 25, 0.09 years, 15% , Immedialety callable
    MTBCP 25, 0.09 years, 14.9% , Immedialety callable
    HAWEM 21, 0.09 years, 11.9% , Immedialety callable
    CNLPL 51.84, 0.09 years, 10.1% , Immedialety callable
    CHSCP 25, 1.59 years, 9.4% , Callable 7/18/23 but farmers don’t want it called
    GJH 10, 0.09 years, 7.5% , Not callable
    C-N 25, 0.09 years, 7.5% , Immedialety callable
    DDT 25, 0.09 years, 7.4% , Immedialety callable
    MER-K 25, 0.09 years, 6.8% , Immedialety callable
    GNE-A 8.59, 0.09 years, 5.4% , Immedialety callable
    BPOPO 25, 0.09 years, 5.3% , Immediately callable, companion BPOPN was called 11/1/21
    CMRE-D 25, 0.09 years, 4.7% , Immedialety callable
    TY- 55, 0.09 years, 4.4% , Immedialety callable
    GUT-A 25, 0.09 years, 4.4% , Call is announced but not dated
    PW-A 25, 0.09 years, 4.4% , Immedialety callable
    TANNI 25, 0.09 years, 4.3% , Immedialety callable

    Twenty one of the twenty three issues are past their first call dates and therefore are immediately callable. Many of these have “stories” of why they have not been called and/or will not be called. I have attempted to capture these stories in a few comments, but would welcome any new inputs. I will record the new inputs and use them next time I publish the list.

    Once again, this is a mechanical calculation and is NOT 100% accurate as I do no attempt to capture partial earned dividends. But if an issue has >=4% at risk, it is well beyond a single dividend. Since this is a mechanical calculation there is NO divine wisdom involved. These issues might all be uncalled 25 years from now. Personally I would not make that bet. And yes, the original reason I started compiling these lists was because I got burned on an issue that was called and lost a few dollars. I make this calculation every day on every issue and use that as an input on any potential buys.

    Hope it helps save you a few dollars if an issue gets called.

    1. Tex, I appreciate your diligence and sharing:
      I know investing is about accepting the facts of the here and now. You are doing that. Got it.
      Most of the investments you refer to here would probably be like Gbird’s ancient perpetuals IF we had just gone through a regular and natural interest rate cycle. Obviously, most of these were refis and NOT redeemed from a sinking fund or cash on hand. It has perpetuated an artificial resuscitation, but for whom? Is it really part of an employment security, so that these private companies stay viable to retain employees? Help private business retain balance sheet strength? Aren’t they full up on brains and CPAs already?
      I just revisited the buying of $75 billion in corporate bond issues bought thru ETF purchases, now supposedly trickling them back into the open market. Exactly who has/does this benefit? The bonds and prefs you mention here would probably be good money for the rest of our lives, unable to be called….IF….the big IF.
      Part of Credit is Faith in What. Faith and Credit for Whom? Not me.

    2. MER-K was my biggest flip screw up for easy money. It recently dropped a month or so ago into 25.70s over call fear from a new BAC issue. It didnt redeem MER-K as I assumed and now its now up a buck and kicked out a quarterly all in short order. Its unbuyable at this price now from call risk though.
      PW-A is years past call, but it didnt stop it from doubling the float with an ATM issuance earlier this year. I reentered recently at $26, fully aware of call risk, but will play it out, and trade at some point possibly, as I have recently focused on some issues that dont trade in line with daily market gyrations.

      1. here is the underlying for the GJH.
        United States Cellular due 2033
        https://www.sec.gov/Archives/edgar/data/0000821130/000104746903039546/a2123863z424b5.htm
        this underlying bond is also callable at any time, but has an extra kicker when it is called.

        “The Notes may be redeemed, in whole or in part, at our option at any time or from time to time prior to maturity. The redemption price for the Notes to be redeemed on any redemption date will be equal to the greater of the following amounts:

        • 100% of the principal amount of the Notes being redeemed on the redemption date; or the sum of the present values of the remaining scheduled payments of principal and interest on the Notes being redeemed on that redemption date (not including any portion of any payments of interest accrued to the redemption date) discounted to the redemption date on a semi-annual basis at the Treasury Rate (as defined below), as determined by the Reference Treasury Dealer (as defined below), plus 30 basis points ”

        It was issued at a price below par, 98.38 but it does not have OID because this discount is considered de minimis, due to the 30 year length of the bond.

        1. To put the call price on GJH into perspective and estimating the yield on a 12 yr US Treas at 1.50% now, were US Cellular 6.70% called today, it would cost USM over 152 to call them. That being said, and without returning to the GJH prospectus for details, if the underlying 6.70% bond were called, the GJH holder would only receive $25 plus accrued..

        2. Justin, thanks for the details on JBK and GJH. I have updated the notes on both to say that the underlying corporate bonds have make whole provisions. The US Cellular Cusip is 911684AD0 and is trading ~ 121.**, for 4.35% YTM on 12/13/33.

          I have seen a ton of corporates called this year. If they are not make whole, they just call them any time. If they ARE make whole, they usually wait until one month before the original maturity, because they typically do NOT have to pay make whole for the final month. I have owned several of them and did not read the prospectus carefully enough. Missed out on one month of interest, so no steak dinners around here. . .

  35. SSSSL – SSSSL – Quote forSURO CAP CORP 6% PFD NT MYT 12/30/2026 is now trading.
    Bid x Size
    25.31×5
    Exchange
    NASDAQ
    Ask x Size
    25.40×1

    1. Have we just hit ex-div date on CRLKP?

      From Quantum Online

      Distributions of 5 1/4% ($1.3125) per annum are paid quarterly on 1/1, 4/1, 7/1 & 10/1 to holders of record on the 15th day prior to the payment date (NOTE: the ex-dividend date is one business day prior to the record date).

        1. I noticed the $24.50 bid a bit before Karma posted, but assumed it had went exD and didnt pursue. I would need it to drop more to be interested. But mostly because I probably have all of it I need already.

  36. KTBA @ 25.56. You can buy it at Schwab but will pay a $6.95 commission. Not sure how many more shares are available if any at that price.

    1. I have been unable to buy any more for the past month (I keep getting outed). Schwab indicates it’s under the 15c2-11 rule like LTSA. Oddly, there has been a $31.21 bid for the past week.

      1. My apologies, I had a Schwab order fill today on KTBA, but it had been open for a while. They did NOT cancel it, but like you I am not able to enter any new buy orders.

  37. GAB-J Announced call for January 31…. Redemption price will be 25.132465… Last trade = 25.20

      1. nhcoast, here you go:

        https://finance.yahoo.com/news/gabelli-equity-trust-announces-redemption-181100331.html

        On the same day, they also announced the issuance (private placement) of 4.25% Series M preferred.
        https://finance.yahoo.com/news/gabelli-equity-trust-announces-initial-183200749.html
        Included in this announcement:
        “The Fund expects to use the proceeds from the offering to redeem the Fund’s outstanding 5.45% Series J Cumulative Preferred Stock.”

        1. mbg
          Thanks much. I did not doubt 2WR for a minute, but I was curious. I looked all over and couldn’t find anything. I got pantsed on this one, which will happen now and again when buying past call. The call strikes me as a bit odd, in that, as far as I know, the Gabelli funds have not yet formally called those other ones that they said they would be. Also, they only had to give 15 days notice, so in that regard, I guess they left a few cents on the table.

          1. nhc – when I first saw it yesterday, it was on a newsfeed on TOS… at that time I tried to find the actual link but I couldn’t find it either….. That’s why I didn’t post it originally. I did just find it at https://www.businesswire.com/news/home/20211217005523/en/Gabelli-Equity-Trust-Announces-Redemption-of-5.45-Series-J-Cumulative-Preferred-Stock but glad mbg found it elsewhere as well……It wasn’t on yahoo finance when I originally posted..

            BTW, the interesting thing is that Gabelli announced calls on GUT-A, GDV-G and a GGZ preferred on 11/18 with actual call dates to be filled in later and they still haven’t announced those specific dates yet.

  38. GLU-B PUT announced Cut-off Date = 1/26/22 officially but most brokers will cut off earlier.

    If you own GLU-B you should have received this already… Put is as per the terms of the original prospectus…. Don’t forget that there will be a second put option available in 2023 (probably cut-off 1/26/24) so the decision to be made is if you want to own a 4% paying GLU preferred for another 2 years. Considered as a 2 year piece of paper, 4% is not bad.

    https://reorgdocumentlibrary.broadridge.com/Client/Client?data=1221/E27546/36242L303/c

    1. GLU-B just went ex-div and you could sell it to someone else for $50.90 right now, so no logic in selling it to the issuer at $50.

      1. “Each holder of Preferred Shares that validly surrenders its Preferred Shares will be entitled to receive a payment in cash equal to the Liquidation Preference per share plus any accumulated and unpaid dividends thereon as of the date the Fund accepts such surrender. The Liquidation Preference and Unpaid Dividends as of December 26, 2021 will be payable on December 28, 2021, to shareholders that validly surrender their Preferred Shares by 5 PM on December 26, 2021, and the Liquidation Preference and Unpaid Dividends as of January 26, 2022, will be payable on January 28, 2022 to shareholders that validly surrender their shares Preferred Shares between 5:01 PM on December 26, 2021, and the Expiration Time.”

        Boy can I envision TDA making a mess of these payments even if someone pays attention to the timing of their put. ha! I’ll probably just hold on to mine anyway..

  39. Ready Capital (RC, RCA, RCB, RCC, RC-C, RC-E) filed a prelim for a new debt issue:
    https://www.sec.gov/Archives/edgar/data/0001527590/000110465921150270/tm2135379-1_424b3.htm#tsUOP

    In the “Use of Proceeds” section, no mention made of redeeming anything:
    “We intend to contribute the net proceeds from this offering to our Operating Partnership in exchange for the issuance by the Operating Partnership of the Mirror Note with terms that are substantially equivalent to the terms of the notes offered by this prospectus supplement. Our Operating Partnership intends to use the net proceeds to originate or acquire our target assets consistent with our investment strategy and for general corporate purposes. Prior to these anticipated uses, our Operating Partnership may invest the net proceeds of this offering in interest-bearing, short-term investments, including money market accounts, in each case that are consistent with our intention to continue to qualify as a REIT.”

    1. interesting proposed call feature on this one – callable immediately under a make whole provision calculated to 2024 and then callable at declining premiums based on a percentage of the declared interest rate starting at 50% in 2024 and declining to par. So if this is priced at 6% for example, it will be callable in 2024 at 103% of par.

    2. Ready Capital Corporation Announces Pricing of Public Offering of Senior Notes Due 2028
      12/16/2021 –

      NEW YORK, Dec. 16, 2021 /PRNewswire/ — Ready Capital Corporation (NYSE: RC) (“Ready Capital” or the “Company”) today announced that it priced an underwritten public offering of $110.00 million aggregate principal amount of 5.50% senior unsecured notes due 2028. The Company intends to use the net proceeds from this offering to originate or acquire additional mortgage loans and mortgage-related assets consistent with its investment strategy and for general business purposes. Piper Sandler & Co. is serving as book-running manager for the offering. The offering is expected to close on December 21, 2021 and is subject to customary closing conditions. The issue price to investors will be $1,000.00 per note, plus accrued interest, if any, from December 21, 2021, if settlement occurs after that date, and the notes will be issued in minimum denominations of $2,000.00 and integral multiples of $1,000.00.

      https://ir.readycapital.com/investor-relations/News/news-details/2021/Ready-Capital-Corporation-Announces-Pricing-of-Public-Offering-of-Senior-Notes-Due-2028/default.aspx

        1. Too low for me too. 1% lower than RC-E 6.5%. seems to be the going rate discount for having a maturity date. As a mostly short term trader I generally go for the higher yield.

        2. Purely a speculative thought on my part but these are $1k denom and, therefore, are more aimed at institutional buyers than most $25 baby bonds and right now, to generalize, I think companies can get a better deal with institutions than with baby bonds… It makes sense to be issuing 11k denoms and that might explain the relatively aggressive pricing…….

  40. My order for BKT @ 5.69 just filled. This is a decent CEF corporate bond fund. Take advantage of these last minute price moves to lock in higher coupons and lower credit risk.

    Bloomberg is droning on and on about the beer virus. I don’t think that the Fed does much going into the end of the year maybe a “lean” or a “tilt”. The Fed wants the market to be the bad guy. Then they can “save the day” with the 300T BBB.

    This hopefully will clear the decks before the next “hike”. Rinse and repeat

    YMMV DYODD

    1. NWGG:

      A 7% yield on that CEF even though it invests in FNMA and AAA-rated bonds? There is no free lunch. I would be leary of investing in any CEFs that use short-term rates for leverage right now. That fund is 25% levered, and its interest costs are likely going to rise in 2022.

      The fund had an initial offering at $10 in 1988…and now it is below $6 with AAA bond prices near all-time highs. Seems the distributions of this fund have a high percentage of “return of capital”, but I haven’t done enough homework to know if monthly dividends are fully covered by net investment income.

      Good luck to all.

      1. RV,

        I figured somebody would find something wrong with it. I do very well in CEFs and just exited JHI for a flip. So yes, there is no free lunch. CEFs are just rentals to me. It is at a 52 wk low and Barfrock is one of the better corporate bond managers.

        If you really want to find something wrong with a CEF, I also bought TEI. Again, if Templeton can’t buy a decent bond in their specialty, well what is their worth? The asian bond market looks a lot right now like what the US could look like if spreads blow out.

    1. mbg:

      6%? My goodness.

      Just a fabulous piece of financing for a $300 million total enterprise value hard-money Connecticut residential construction lender. We can all waive good-bye to SCCB and SACC.

      1. RV,

        SACC

        Yes, fabulous for me. Bought their preferred offering and double’d up from my usual. Flipped some quickly and milked the rest for the divvy and flipped again (just sold divvy + cg).

        I will use the proceeds to buy the debt. Again, moving from equity to debt to lower risk. Then if and/or when it goes up then sell again. If it goes down, just hold until maturity.

      2. Rob, I hear that.

        From their recent 10-Q, as of 9/30/21 they had about $58.2 million of SACC and SCCB combined.
        This offering will give them ~ $50 million (assuming full exercise of the overallotment option). About $8 million less than what they need to fully redeem both. Maybe a full redemption of the 7.125% SCCB and a partial redemption of the 6.875% SACC.

    2. Holding some SCCC which will probably be gone late 2022. I’ll pick up some of this short term issue.If rates will rise as predicted, who knows what the market will be like a year or two from now.

  41. JMP Group LLC JMPNZ 6.875% was called yesterday in my CS account.

    Very difficult to keep up with all the recent calls and the downward new issuers with lower interest rate environment. Maybe if the fed raises rates the Baby Bond market takes a few lumps but the recalls slow down?

    1. New Issue: Sachem Capital Corp (SACH)
      Fixed Rate Senior Notes due 2026
      $25 Million
      BBB+ (Egan-Jones)
      6.00 – 6.25% area

    1. Gary – That’s not new info…. that Use Of Proceeds possibility to fund calling some or all RILYO was a part of the original prospectus. It may allow RILY an ability to call more O, whenever they get around to it, but possibly using funds to call RILYO was already telegraphed.. At first, I thought maybe this was news of a possible call for some RILYM as well, but that’s not the case… The real question is whether or not RILY will drag its feet until May to save 1/4 in call premium before calling all or part of RILYO. They have been slow on most all calls they’ve done so far relative to original announcements.

  42. Regular III’ers might have seen when I posted lists of preferreds/babys that would suffer significant losses if they were called on the first possible call date. The criteria I used was “how many years” of annual dividends would be lost if the issue was called. Several of the issues I highlighted HAVE been called, so hopefully if you sold them based on the posts then you escaped the carnage.

    Rather than present a full list, today I show a new “Hall of Fame” member: MTBCP, Carecloud 11% coupon, $25 par, first call date was on 11/4/2020, so it is immediately callable @ $25.00. It closed Friday 12/10 @ $29.00, so would suffer a loss of close to $4.00. It pays a monthly dividend of $0.2292, so I just ignored how much was partially accrued. So $4.00 works out to be 3.77 years of dividends.

    Maybe you are thinking the company said they have no plans to call the issue, despite it paying a 11% coupon. Au contraire, on their 11/6 conference call they said:

    “The Series A Preferred Stock has played a critical role in supporting our historic and rapid growth. However, our current intention, which, of course, is subject to change, is to pivot over time toward a capital structure that reduces the role of our Series A Preferred Stock through exercising our redemption rights when and as appropriate. While the timing and manner of achieving redemption is obviously still to be determined, this will remain one of our key areas of focus as we continue to move forward.”

    Seems like investors are playing with matches around an open gas can, but maybe I am missing something here. . .

    We have never owned MTBCP in any account at any time, not have we ever had open orders to buy it or short it. Just so everybody knows we are NOT trying to capitalize on posting this info.

  43. Two days ago (12/8) I posted about ways to trade a larger >=10,000 share preferred/baby. Today we got a perfect example of somebody that did NOT get the message. Oxford Lane Capital OXLCP trades about 6,000 shares a day, usually in a pretty narrow range. At 3:58:34 PM NYSE time, one minute and twenty six seconds before the close, somebody decided to sell ~ 29,000 shares. It has the appearance of being a “market” order, but it could also have been a forced margin liquidation or an “estate sale.” At yesterday’s close of 25.23, that represents a ~ $732k share trade, a little larger than most retail investors do. Assuming this was a 5% portfolio position yields a portfolio= $14.6 million. So this probably was an individual as opposed to a institutional fund, because presumably the institution would be larger.

    In any event, over the next two seconds, the price fell from 25.02 down to 22.63. By the close, the price had rebounded to 25.00. Assuming the 25.02 was the correct price, the investor gave up $31,651 to consummate the trade. How many steak dinners is that?

    Regular III’ers might recall that I track trades like this. Most of the time, the crazy trades are less than or equal to 2,000 shares. It is very unusual to see a trade this size bomb the price. Usually those trades are handled off the market where a price is negotiated “in the dark” and then reported as a single block trade later, 100% opposite of how this trade went down. One of the mysteries of the day. . . a few others but they are smaller dollars. .

    1. I am surprised that the price held at 22.63 if they dumped all at once. 29K shares. My goodness. I would have thought it would break 20 easy but OXLCP does have a bit more trading per day then many I follow. It is also relatively new issue I think. Early 2020. Odd to buy 29K shares and then sell so shortly after. Not much conviction?

      1. FC, like you, I am shocked that the price did not collapse further. I am very surprised there were that many buy orders sitting out there, or generated very quickly by automated algorithmic trading programs. In the pre-market or after market, you see a reasonable number of issues with either NO buy price or a one cent buy price showing. But you never see that during the regular trading day, excluding our “pink no info” issues.

        We will never know exactly how/why the sell order got entered and/or why this many buyers showed up. There were 80 separate trades in those two seconds, as opposed to just a few large trades. Another mystery of life . . .

    2. Wow, sorry I missed the party. I’ve placed some bids over the past few weeks (but not today), some of which were filled, none below 25….oh, well.

    3. Couldn’t it have been a pre-arranged block trade perhaps related to an ATM offering? OXLC is famous for ATMs.

      1. Hi Landlord, the “trade” was actually 80 separate trades ranging from 2 shares up to 1,500 shares per. It was not a single block trade. I would have expected that the 29k quantity would have been done as a single block, negotiated off market, then reported. Not what we saw here. If it was an ATM from OXLC, it was not very well handled and the CFO should be unhappy about it.

        1. So they literally cleaned up every outstanding limit order across the street and probably a few market orders that jumped in when they saw the price tank.
          Reminds me of the flash crash caused by Waddell and Reed IIRC in like 20 big ETF’s. (which is why you always keep limit orders out that are 15% below the current market price, sometimes they fill….)
          but sometimes you get burned… like HCDIP…

          1. I keep a few wanker-orders out there on my margin account and usr margain for nothing else. then cover it pronto if something bumps one of the pigs at the trough.

  44. I’ll continue to hold MNR-A for exactly the reason you state, however, don’t forget that a similar proposal was voted down once before by shareholders so you do assume the risk of what this would be worth without the merger going through… Recently we’ve been seeing a minor decay in prices on similar perpetuals so that’s the downside of holding… Still, even without the merger, MNR-A seems to be fairly priced right now. imho.

    1. 2WR, MNR-A is fairly priced now? You wanna party like its 2015, huh? 🙂 Yep, that was a good one, and I enjoyed trading and holding that juicy 7.65% preferred. But that horse left the barn a long time ago, ha!

      1. Grid – Are you saying that without the merger possibility you think MNR-A would be trading much lower???? I’m not sure what the best comparison ought to be but it were something similar to be priced today, don’t you think it’d be priced just around this level? maybe my mental comparitives are off…. Party on, Garth…….

    1. Zwei:

      Any remaining hope (there was really very little chance) that MNR+C will become ILPT+C is gone. So if the merger is completed on 2/3/22 – MNR+C holders will get (50/90*.38281) + $25 = $25.21.

      Will truly miss MNR+C – one of my largest holdings for years.

      Q:
      What will Monmouth’s preferred shareholders receive in the Merger?
      A:
      At the Effective Time, each issued and outstanding share of Monmouth Preferred Stock will be converted automatically into the right to receive $25.00 in cash plus accumulated and unpaid dividends to, but not including, the Closing Date. See “The Merger Agreement—Merger Consideration” for a detailed description of the Preferred Stock Consideration.

      1. “… each issued and outstanding share of Monmouth Preferred Stock will be converted automatically into the right to receive $25.00 in cash plus accumulated and unpaid dividends…”

        Does this mean

        a) that MNR-C shareholders will be paid $25 + div (i.e. no action needed on the part of the shareholder), or
        b) that MNR-C shareholders must take some action in order to exercise “the right to receive” $25 + div?

        Trying to understand whether I’ll be screwed if I somehow miss the transaction and fail to exercise the right…

        1. But- “automatically” is the key word – no action necessary….. this is not terribly unique language, so I’m quite certain shareholder no gots to do nothin….. Of course, though, it’s all dependent on common shareholders approving the deal and they’ve already turned one down before as you know. Though this offer pays a little bit more, there seems to be mixed opinions about the merits of an all cash deal…….

  45. SPE – New $25 convertible preferred being offered thru transferrable rights offering – 2.75% coupon convertible initially at $20.50 with SPE currently at 15.64. ZZzzzzzzzzzzzzzzzzzzzzzzz.. Yawn……… have not read entirely but with last one conversion was adjusted with each dividend and SPE has had an 8% dividend policy paid monthly based on year end NAV which I suspect will remain in place for this offering…. I expected and was looking for better terms… 1 right for each 5 shares owned.

    https://www.sec.gov/Archives/edgar/data/897802/000089418921008592/specialopp_n2a.htm

    1. RE: SPE new preferred – like SPE-B had, the new one, which will be SPE-C, will have a mandatory expiration date that will be 5 years from the expiration date of the rights offering….

    1. yeah, is great for UEPEP. I keep picking up shares for the last few days. Happy to pick up any that folks want to send my way.

      1. I trade in and out of it some since you can reliably pick up a dollar or two on the swings and pick up a dividend or two along the way. But it usually doesn’t go this low so the swing points may be adjusting downwards like everything else.

        1. It almost looks like the seller dumped his last 75 shares or something. Odd lot situation today.

        1. I don’t, LI so i dumped mine. Can get a higher coupon for similar risk and more liquidity (which is important to me).

        2. Seems to me that is about the going rate right now. It’s call price is 102.47 so if bought at 100 and called that is a bonus. It is QDI. It is not a bank/financial thus cumulative and gives diversification in something considered stable. Looking at new issues I do not see anything that totally blows it away. Only the risk of rising rates does this one become unappealing at this time.

          I also think some people want to worry more about their golf swing then their preferred stock portfolio. I cannot imagine some of the risk people carry to get above 6.5%. Oh yea I can imagine.

          Also as Grid will fondly say… this preferred was probably an easy sell above 90ish during the covid crash. Allowing you to swap out to truly damaged goods if you wanted. Most preferred sank like a rock but some of this stuff was more stable. I am assuming you are selling like 200-500 shares. Not 20K.

          1. Noone has dumped since last week. I largely picked those up. Was a treat to get them in the $100 range. I think in 5 yrs they have hit $97. But that is a 1/2 year’s worth of dividends… but when you are holding for a lifetime, I really dont care if it fluctuates 6% in price. Just pay me with re-occurring income.

    1. That was suspended for many many years. Its a non cumulative preferred, so that saved them money.

      1. Grid:

        How did a publicly-traded homebuilder ever get away with issuing a non-cumulative preferred? This was issued in 2005 and stopped paying dividends in October of 2007! I guess in the heat of the prior housing bubble homebuilders could do anything they wanted.

        HOV almost died as a company but has certainly been re-incarnated. Stock price at $120+? They were forced to do a 1-for-25 stock split back in March 2019. Wow. Their balance sheet is still crap compared to the other big well-capitalized publicly traded homebuilders like LEN, TOL, PHM.

        HOV has $700 million of market cap to go along with $1.4B of debt. I have listened to the CEO (Ara Hovnanian) speak many times in the past – he is as slick a salesman as they come.

        Caveat Emptor to anyone looking to possibly buy this one.

        1. And get this Richard Lejuene who loves high risk issues wrote a very negative article on this one years ago. Said it had one of weakest covenent protections for a preferred he has ever seen. Im surprised they started paying again.

          1. Grid:

            There was a fascinating legal battle between Blackstone, HOV, and another hedge fund back in 2018 regarding credit default swaps. HOV and Ara were somehow able to get $300+ million in 22-year debt from Blackstone at a very low rate of 5% when the company was near death (HOV was at $2/share). I don’t know how the legal case ended up, but it must have been favorable for HOV!

            Like I said, Ara is one helluva salesman (from a Barron’s article in Feb 2018):

            “Then there’s the recent legal battle, which caused the latest selloff. In short, a Blackstone Group (BX) hedge fund, GSO Capital Partners, bought credit-default swap contracts that pay out if, for instance, the builder misses a coupon payment.

            GSO agreed to refinance Hovnanian’s debt if the company agreed to skip a payment. That allows GSO to get paid on its default contract and Hovnanian to avoid bankruptcy.

            Another hedge fund, which was on the other side of the trade and lost money on it, is contesting the deal in court. Hovnanian and GSO have argued that similar transactions have gone through in the past. Hovnanian defended its role in the deal as the best of “available options” to “strategically manage our debt.”

            IT’S A CONTENTIOUS issue, and Hovnanian could still bear some legal responsibility. Yet lost in the noise is that Hovnanian has just raised between $281 million and $363 million from the GSO deal on remarkably generous terms that will help the company and its shareholders. This includes some 22-year debt at 5% interest. A federal judge has allowed the new financing arrangement to continue, and the rest of the case is being reviewed. “

            1. “GSO agreed to refinance Hovnanian’s debt if the company agreed to skip a payment. That allows GSO to get paid on its default contract and Hovnanian to avoid bankruptcy.”

              That is seriously shady. It’s basically like insuring your house and then burning it down. GSO insured against default and then basically bribed HOV into defaulting.

            2. “GSO agreed to refinance Hovnanian’s debt if the company agreed to skip a payment. That allows GSO to get paid on its default contract and Hovnanian to avoid bankruptcy.”

              That is seriously shady. It’s basically like insuring your house and then burning it down. GSO insured against default and then basically bribed HOV into defaulting.

  46. New Issue: SuRo Capital Corp. (SSSS)
    Notes due 2026
    SSSSL
    $40 Million
    BB+ (Egan-Jones)
    Coupon Talk: 6.000%

  47. Who should use hidden orders? Following up on when it would be appropriate to use hidden orders, there is one case that is pertinent to low volume preferred/baby trades. The case is when you want to place a large order, be it buy or sell. Say you want to buy 10,000 shares of XYZ that usually trades 2,500 shares a day. Ideally you would NOT want to enter a buy order for all 10,000 shares that shows on the NBBO. It would tip your hand to the market that a large buyer was in the market and the market pros would use their techniques to make you pay more. This is the so called “adverse selection” where pros seek an advantage on retail traders.

    This case was the original impetus for “dark pools” where all open orders do NOT show on the NBBO. Large institutional investors would not want to tip their hand when they wanted to add/sell a position.

    If you want to trade a large position and NOT have it show to the NBBO, here are three easy options, but not all retail oriented brokerages offer these options.

    1) Use a hidden order on a “lit” exchange, say the NYSE. You order sits there until an opposite side order is routed (sent) to the NYSE that causes your order to execute.

    2) The user choose to route your order to a dark pool where everybody’s order is hidden from the NBBO, just like the large funds do.

    3) Use an “iceberg” order on a “lit” exchange. An iceberg order lets you have separate control over how many shares show in the NBBO compared to the overall quantity. For example, you might place a buy order for 10,000 shares but only show the market 100 shares. If the first 100 shares gets filled, the next 100 shares shows up. On and on until your full quantity is filled.

    Institutional investors deal with this every day on every trade. They likely use institutional brokers, unlike what retail customers use. Institutional brokers have several ways to fill large orders of which using dark pools is one. If you are a retail customer and need say >10,000 shares of one of our issues, then Interactive Brokers IS a good choice for you because of the flexibility it gives you on orders. Possibly some other retail oriented brokerages offer these options but it is unknown to me. Obviously this is not pertinent to every investor, but it does occur. Like we discussed yesterday, hidden orders sometime offer an advantage but it is hit or miss.

    For the record, we DO use hidden orders on Interactive Brokers, but have no affiliation with them other than being a customer. Do NOT own their stock. Do NOT get paid anything as an “influencer.”

  48. Vistra just issued a 7% cumulative resettable green pfd unfortunately what I read said it is a private pfd. Too bad I would have loved to buy some!

    On another end of the spectrum has anybody looked at GMBLP? Tiny issue but E Sports is all the rage these days.

    1. Ellington Financial Series B
      Series B Fixed-Rate Reset Cumulative Redeemable
      Preferred Stock
      EXPECTED RATING: A- (Egan- Jones)
      Perpetual
      $100.0 million
      6.25% area

  49. Tips on trading preferreds/babys: Today we had a trade that reminded me that you might be able to pick up a few extra pennies. The particular issue is not important as this is a common situation on illiquid preferreds/babys. The quotes were say 25.01/25.19. We wanted to sell a small lot of <100 shares and were happy if we got 25.01/share. We entered the sell order and walked it down in one cent increments from 25.19 headed towards 25.01. The order filled at 25.07 so we picked up an extra 6 cents/share. Not exactly earth shattering but might buy an extra Big Mac.

    When placing a trade, you should assume that there are “hidden” bid and ask prices between the ones that are showing, aka NBBO (National Best Bid and Offer.) You can do the same walk down if you are selling 100 shares or more, but your sell order will become the “inside” ask and lower it. In this case often times when your order lowers the ask price, the bid price will be automatically lowered. Sometimes you can get around this by selling 99 shares at a time. And yes this is a nuisance, particularly if you are trying to sell say 5,000 or 10,000 shares. Another alternative is to place “hidden” orders that do not show on the NBBO, but most brokerages do NOT allow this. And that is far from foolproof for reasons I will not go into. In the case today, if we had used a hidden order, it MIGHT have skipped over the 25.06 and not gotten filled until it reached 25.01.

    The same procedure works in reverse on buy orders. In some cases where the spread is very wide, say 50 or 75 cents, you can pick up an extra 25 or 37 cents. More commonly you can pick up a penny or two.

    1. If you enter the bid price you might get the hidden price in the form of price improvement. I don’t know how often as I don’t know how to test it.
      An order for an odd amount may get passed over for a lower 100 share order.

    2. Tex – Can you actually name an online broker who does allow John Q to place a hidden order???? I hadn’t heard of any who did and it might be valuable info to have… The only way I’ve known to place and invisible order is to place one with special instructions such as AON, and my experience with that is that in that case, you might as well have not placed any order at all because I can’t think of a time where an AON order executed for me……

        1. Thanks, ESW3 – Your answer couldn’t help but make me think how all over the question Bob-in-De would be were he still contributing here given what a big fan of Interactivebrokers he is……….. lol Good to know…

      1. 2WR, as ESW3 already said, you can place “hidden” orders at Interactive Brokers. That said, there are a few caveats:

        1) I do NOT recommend IBKW for most investors. It is great if you want to place orders literally around the world on different exchanges. It also has the lowest margin loan rates of any brokerage and they are dramatically lower than TDA, Schwab, Fido etc. Their desktop trading program Trader Workstation, has a steep learning curve. And it is darned easy to to fat finger a trade. Think of playing Simon Says with orders. Every once in a while, you WILL trade when Simon didn’t give you permission.

        2) Before we discuss hidden orders, a brief overview of how orders get “routed.” When you submit an order to your brokerage, they have some algorithm that automatically decides which trading venue it goes to. For brokerages that use “wholesalers” like Citadel, Citadel will decide where to route your order. Citadel make take the other side of your trade or route it somewhere else. There are roughly 50 different places a stock order can execute for US listed securities. Their algorithm is supposed to route it to the place to get the “Best Execution” i.e. price, based on some kind of rules.

        3) Let’s assume you have an issue showing 25.00/25.30 and you place a hidden order to buy at 25.05. When a seller shows up and enters a “market” sell order, will he even see your offer to pay 25.05? Say your 25.05 buy order is sitting at the BATS exchange. And let’s say the 25.00 buy order is sitting at the NYSE. If the seller’s algorithm does NOT send the order to the BATS exchange first, it might go straight to the NYSE and get filled at 25.00.

        4) Here is how hidden orders work with preferreds/babys. About half of the time, they work as you would hope. In the case I just listed, somebody will sell you shares at 25.05 and the person offering to pay 25.00 will get NO shares, assuming your quantity is enough to take all of the shares offered. The other half of the time, the 25.00 buyer will get the shares and your 25.05 offer to buy will get ignored, because the seller could NOT see it.

        5) Bottom line is that hidden orders are NOT a panacea for preferred/baby orders. Too hit or miss if you really want to get an order filled.

        1. Thanks for taking the time to fill in more details, Tex… There are of course subtle trading techniques that can be used to simulate a hidden order or to influence where the bid and asked might be on a particular stock/bb/preferred. Grid, surprise surprise, is a master at this and has shared some of his game playing techniques here in the past, so I’m not sure whether or not switching brokers or adding IBKR merely for the sake of being able place hidden orders would be worth it, especially given the other caveats you outline.. Personally, I’m not that interested in being able to place orders all around the world and I’ll never ever get close to going on margin in any meaningful way, so those IBKR plusses, even with the added bonus of being able to place hidden orders, just might not be enough to get me off my duff and try them out….

    1. I’ve only been following BEP and BEPC for about a year or so and the one thing I’ve felt about them is that they sure are pretty good at market timing. I foolishly bot into their February secondary issue in tranches even though it seemed clear that its purpose was to take advantage of what the sellers considered to be a high market price for their shares… They were right and buying in was my worst market decision of the year…. Maybe this venture of theirs into issuing baby bond perpetual note is, therefore, another declaration of their opinion on where interest rates are going in the future..

    1. Interesting… This new BW note will be due 12/31/2026 and will have a make-whole call to 10/2/26 as opposed to BWSN’s calls at sliding premiums beginning in 2022… Theoretically imho that should make the new note worth a shade more than the old…….. and of course BWSN now trades over $26. Any price talk?

      1. 2WR:

        Well, this new BW baby bond at potentially 6.5% might explain why the 7.75% preferred BW+A has been getting jammed higher – look at how much higher the RILY preferreds (RILYP and RILYL) trade over their baby bonds in the current environment.

        Anyway, maybe I’ll curtail selling my BW+A. That thing has rocketed since the end of November and has barely stopped. I thought that maybe PFF was buying it, but the volume hasn’t really skyrocketed.

        I own both BWSN and BW+A. BWSN looks to be toast starting next March (2/28/22), but at least the company will have to pay me $25.75/share. I never paid higher than that amount.

      1. Haven’t had my coffee yet, so I’m trying to figure why the low ytc would effect the call vs the call date itself. IF they can call it, it’s probably time to be planning to sell.
        They don’t indicate the use of the new funds to do a call.

  50. Spin-off issue from Stealthgas (GASS), ImperialPetroleum 8.75% cumulative preferred stock (IMPPP) started trading this morning.

    1. Hmmmm……I need another shipper like I need a hole in the head. Found this for the benefit of others.

      “Athens, Greece, December 6, 2021 – StealthGas Inc. (Nasdaq: GASS) (the “Company”), a ship-owning company serving the liquefied petroleum gas (LPG) sector of the international shipping industry, today announced that it has completed the spin-off of its wholly-owned subsidiary, Imperial Petroleum Inc., the holding company for four tanker vessels, effective December 3, 2021.

      StealthGas stockholders received (1) one share of Imperial Petroleum common stock, par value $0.01 per share (“Imperial Petroleum Common Shares”), and (2) one share of Imperial Petroleum 8.75% Series A Cumulative Redeemable Perpetual Preferred Stock, par value $0.01 per share, liquidation preference $25.00 per share (“Imperial Petroleum Series A Preferred Shares”), for every eight shares and forty-eight shares, respectively, of StealthGas common stock owned at the close of business on the record date of November 23, 2021. To the extent the distribution would have resulted in any shareholder owning a fractional Imperial Petroleum Common Share or Series A Preferred Share, such fractional shares will be aggregated by the distribution agent into whole shares, sold in the open market at prevailing rates and the net cash proceeds from the sales distributed pro rata to each holder who would otherwise have been entitled to receive fractional Imperial Petroleum Common Shares or Series A Preferred Shares, as applicable, in the distribution.”

    2. GASS isn’t as bad as I might have thought.

      + CFO
      + NI 3 of 4 last qtrs
      + Sales last 4 q’s
      CS equity about the same for 5 FY
      CF gets eaten up by CAPEX, and other means

      I put in a ridiculous order that probably won’t get filled. However, my lowball ECCD got filled today…go figure

  51. Asking under incorrect category so that folks will see this quickly.
    If previously discussed, I have missed the info. How does one display the latest listing for the SEC supplemental OTC 15c2-11 stocks, on this site or elsewhere. ( The only account I have is at TDA so other brokers will not work for me ). Thanks for bearing with me.

          1. Thanks af, 2whiteroses,& Justin – The ‘expert market’ filter on the OTC site works fine for me. Appreciate your guidance.

  52. I don’t see my post from a few minutes ago, so re-sending it:

    Sale on SB-C and SB-D. D has the heavy volume.
    Bid on both is 25.00 (ask on D is 25.07)

  53. Eagle Point heads up: ECCB partial call – 51% of my holding was journaled for call this morning.