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1,291 thoughts on “READER INITIATED ALERTS”

  1. Ready Capital [RC] dividend cut: https://ir.readycapital.com/investor-relations/News/news-details/2023/Ready-Capital-Corporation-Declares-Fourth-Quarter-2023-Dividends/default.aspx

    Cuts dividend on common by 16.7%

    12/14/2023

    NEW YORK, Dec. 14, 2023 (GLOBE NEWSWIRE) — Ready Capital Corporation (NYSE:RC) (the “Company”) announced that its Board of Directors declared a quarterly cash dividend of $0.30 per share of common stock and Operating Partnership unit for the quarter ended December 31, 2023. This dividend is payable on January 31, 2024, to shareholders of record as of the close of business on December 29, 2023.

    The quarterly dividend reflects the impact on earnings of lower leverage and portfolio yield compression due to the ongoing integration of the Broadmark portfolio. The Company expects earnings to migrate towards historical return targets over the course of 2024 as increased liquidity is deployed into current market yields and underperforming assets in the Broadmark portfolio are repositioned into the Company’s proven loan origination and acquisition products. The current dividend will result in the retention of excess liquidity for reinvestment while preserving book value during the coming year.

    “The current dividend is a temporary, short-term reflection of our merger with Broadmark,” said Thomas Capasse, Chief Executive Officer and Chairman of the Board of Directors. “We remain confident that the merger will start to deliver long-term earnings accretion as we move through next year and beyond.”

    Additionally, the Company announced that its Board of Directors declared quarterly cash dividends on its 6.25% Series C Cumulative Convertible Preferred Stock (the “Series C Preferred Stock”), and its 6.50% Series E Cumulative Redeemable Preferred Stock (the “Series E Preferred Stock”).

    The Company declared a dividend of $0.390625 per share of Series C Preferred Stock payable on January 12, 2024, to Series C Preferred stockholders of record as of the close of business on December 29, 2023, which is the effective record date since December 31, 2023, is not a business day.

    The Company declared a dividend of $0.40625 per share of Series E Preferred Stock payable on January 31, 2024, to Series E Preferred stockholders of record as of the close of business on December 29, 2023.

  2. Dec 15th
    My favorite day of the year
    I’ve got 16 dividends payable tomorrow
    After the last two days, frosting on the cake
    Sweet

  3. What is it about AGMPRF that makes its trading so lumpy?
    One would think that a government-sponsored company paying a decent yield (6.3%) would be pretty liquid.
    It’s daily volume is low (@5,000) a day and the bid/asked spread averages 1.5%. (30 bps on a $20 price)
    Its value jumps up/down 2-3% on any given day.
    Gotta be something I don’t see

    1. Westie–good question–I hold a large position and it bumps up and down too damned much–somedays it wreaks my gains–fortunately they are really strong and I have no problem holding it longterm

  4. SPNT and SPNT-B – NO IMPACT: The Parent of a SiriusPoint Shareholder Taken Into Private Receivership – https://finance.yahoo.com/news/parent-siriuspoint-shareholder-taken-private-084200089.html

    SiriusPoint Ltd.
    Thu, December 14, 2023 at 3:42 AM EST

    HAMILTON, Bermuda, Dec. 14, 2023 (GLOBE NEWSWIRE) — SiriusPoint Ltd. (“SiriusPoint” or the “Company”) (NYSE: SPNT), a global specialty insurer and reinsurer, has been made aware that CMIG International Holding Pte Ltd (CMIH) has been taken into private receivership by its lenders in Singapore. CMIH is the parent company of CM Bermuda, a 33% shareholder of SiriusPoint, with 9.9% voting rights.

    The appointed receiver is the audit, accounting and tax firm, EisnerAmper who will be tasked with assessing relevant assets and determining future restructuring plans.

    Scott Egan, CEO, SiriusPoint, said: “The news of CMIH being taken into private receivership is a matter between its shareholders and lenders, and has no impact on the ongoing progress or day-to-day running of our business. Our focus at SiriusPoint remains on simplifying our business, reducing volatility and ultimately, continuing to build profitability.”

    “S&P Global Ratings has informed us that this development is a neutral factor to its ratings on our business and subsidiaries, and is unlikely to affect its assessment of SiriusPoint’s business position or financial strength.”

    S&P Global Ratings revised SiriusPoint’s ratings outlook from ‘Negative’ to ‘Stable’ on November 9, 2023, reflecting its “expectation that SiriusPoint will continue to post strong and improving underwriting results in 2023-2025.” Mr. Egan said the revision recognized “the hard work of our people, their dedication and our collective effort to establish a stable platform.”

    1. 2WR – Thanks for the timely post. A decent buy here still at par possibly. And didn’t really budge at all on trading price during Oct/Nov sell off. This is the kind of less than ideal credit quality offering I prefer. I think little by little we will convert Tim to the junky side as the junky side is more powerful than you can imagine. (said in Yoda voice.)

        1. Maine – Great duration on those as well. I would think they would have to take out the B preference shares at the first call. The spread on the reset is astronomical beyond early 2026.

      1. theta–maybe you will convert me a little–but you can be certain it won’t be a dramatic shift.

  5. Bonds are coming down next year. Odds are the stock market is, too, at least in the first half. Question: would it be a good idea to lighten preferred stocks and move more heavily into long-term bond funds like TLT and IGLB? Seems to me a good case can be made for doing that.

    1. No one knows Wilson.

      Because you are asking, just a suggestion; important for all of us to understand that no one can predict the course of rates or bonds. When fully embracing that reality; invest accordingly.

      Would also advise against over-trading – there are only maybe three IIIers that can do that consistently and profitably over time with the results that justify the time investment.

      Best wishes with your decision-making and for a stellar book through 2024.

    2. Getting great income from JEPI and JEPQ.
      pay monthly. That is if you like ETFs
      I own only 3

      1. Watch the youtube videos that go into how JEPI and JEPQ work, since they are not your average ETF that just collects income from securities the manager purchases.

  6. I decided to swap out of an old favorite AEL-B as it went over $25( up from $22.5 a couple of weeks ago) and bought instead JXN-A, SPNT-B and TGH-A improving YTW and reducing my Brookfield Risk.

    1. I’m surprised you bought TGH-A instead of TGH-B. When do you think the buyout will close?

      1. TGH-B’s current price is more dependent on the going private deal closing than TGH-A’s…. B went up much more relatively than TGH-A. So imho, there’s greater downside risk involved in B than with TGH-A. Granted, as long as the discount to liquidation preference is greater with B, it will provide a better performance assuming both get redeemed at the same time should the deal closes, but I would argue that with what’s happened to interest rates, A is trading almost at a price that would only drop nominally if at all if the deal doesn’t happen. Not so with B… I’ll stick with A, especially with the current relatively narrow spread between them. BTW, I’ve seen no update on timing for the deal, so I have to assume their estimate of closing in the first quarter remains.

    1. Hello 2WR – A couple questions:

      Per the FRB of NY, the current 3-Month SOFR is 5.35149, so not sure why there is a difference at CME of 5.38463%? Is the CME the “official” rate and the FRB is just fyi? I can’t log into the CME, so can’t see what their rate is vs the FRB.

      Also, according to the same FRB of NY, the yield on 3-Month SOFR on 9/13 was 5.2208%, so the current SOFR rate is higher, which would mean that the payouts would increase slightly, not decline.

      Thanks Much!

      1. Good question. It appears that CME is publishing a 3 month forward looking SOFR rate (likely based on SOFR futures) while the official benchmark used to reset preferreds is the backward looking SOFR. That’s what the Fed is publishing and that is the correct rate to use for determining coupons.

        I use this site that shows the calculation with the fallback spread
        https://www.sofrrate.com/

        1. Both interesting questions….. What this all shows is that how to accurately calculate what the official rate is remains somewhat fuzzy I guess…. I certainly don’t want to profess to have 100% definitive answer… But I’ll throw another grey questionmark into the equation: Looking at CUBI-F and using what I have been using to see the applicable Floating rate (culled from cmegroup.com site and verifiable today at https://www.barchart.com/stocks/quotes/SOFERMM3.RT/interactive-chart), 3 month SOFR +.26161 on 9/13 was 5.67104. With CUBI-F being + 4.762, their quarterly rate should have been 10.433%. On an equalized quarterly basis (meaning not on the actual number of days in the quarter basis) that should be .65206 but they declared .65931017. I think that would mean one additional day’s accrued which is understandable HOWEVER, this would also verify the numbers I would have thought should be accurate. Beats me what should be considered official, but I guess we’re all in the same ballpark.

      2. Hiker – check the CME link that 2WR provided, both answers can be found. Your rate of 5.35149 shows under “SOFR Averages” while 2WR rates shows under CME SOFR TERM. I believe, and could be dead wrong, but the SOFR priced securities was off the “TERM” rate.

    2. 2WR-“This should mean an approx 0.03% decline in the rate paid”

      I can live with that 🙂 Thanks for sharing.

  7. ARLINGTON ASSET INVESTMENT CORP. SHAREHOLDERS APPROVE MERGER WITH ELLINGTON FINANCIAL INC.

    1. MCLEAN, Va., Dec. 13, 2023 /PRNewswire/ — Arlington Asset Investment Corp. (NYSE: AAIC) (“Arlington”) publicly announced today, in connection with the anticipated merger transaction with Ellington Financial Inc. (EFC) (“Ellington Financial”), that it intends to voluntarily delist from the New York Stock Exchange (the “NYSE”) Arlington’s 6.75% Senior Notes due 2025 and 6.000% Senior Notes due 2026 (collectively, the “Senior Notes”) and to deregister the Senior Notes under the Securities Exchange Act of 1934, as amended.
      As previously announced, on May 29, 2023, Arlington entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Ellington Financial, EF Merger Sub Inc., a wholly owned subsidiary of Ellington Financial (“Merger Sub”), and, solely for the limited purposes set forth therein, Ellington Financial Management LLC, which, among other things, provides for the merger of Arlington with and into Merger Sub, with Merger Sub continuing as the surviving corporation and a subsidiary of Ellington Financial (the “Merger”). If the Merger is completed, Merger Sub will assume the due and punctual performance and observance of Arlington’s covenants, agreements and obligations under and relating to the Senior Notes. Arlington has decided to delist and deregister the Senior Notes in connection with the Merger, which is expected to close on December 14, 2023, subject to the satisfaction of the closing conditions set forth in the Merger Agreement and discussed in detail in the proxy statement/prospectus filed with the SEC on November 3, 2023.
      On December 26, 2023, Arlington (or Merger Sub as its successor following the anticipated closing of the Merger) intends to file a Form 25 with the U.S. Securities and Exchange Commission (the “SEC”), and it is expected that the last day of trading of the Senior Notes on the NYSE will be Friday, January 5, 2024. Arlington has not made arrangements for the listing and/or registration of the Senior Notes on another national securities exchange or for quotation on another medium.
      Arlington is taking this voluntary action to delist and deregister the Senior Notes because Arlington believes that, following the anticipated closing of the Merger, the costs of compliance, the demands on management’s time and the resources required to maintain the listing of the Senior Notes on the NYSE will exceed the benefits.

        1. Tim, people on SA have been expecting the notes to be called at 25 upon completion of the merger. Wonder what will happen at market open when they find out these are getting delisted?

          1. Charles–you can be certain it won’t be good–maybe not so bad–but certainly not good.

            1. AIC? Already trading under $24. Probably a good buying opportunity with only 15 month duration. Yield now 7% not including the par discount to maturity.

              1. Theta and Charles

                The last day of trading is January 5th 2024, so AIC and AAIN will likely drop some more in the coming weeks.

                I had GTC orders in place that hit overnight. The AIC (@ $24.3) and AAIN (@ $23.39) both have YTM of 9.4%. I’m looking to add to my positions on the price drops in the coming weeks.

                1. Greg Gilbert – Most definitely. I believe AIC will present a greater buying opportunity than that Ocean Spray preferred I alerted quite awhile back when it tanked to the $13s ahead of going dark. There will be some panic selling in size at some point before that deadline for AIC. We should see double digit yields. I will ready to back up the truck. That duration of 15 months is incredible.

                  1. theta–will have to watch on that issue – would be out of my wheelhouse, but maybe I ‘force’ myself to walk on the wildside.

                    1. Tim – EFC is one of
                      the best run MREITS. See slide 26 of their latest presentation, which demonstrates their ability to preserve and grow.

                      Unlike many other MREITs, they have a diversified portfolio so are less likely to blow up (margin called) during tail events. They also have very seasoned (think old) management who have experienced many crises over the years and are very knowledgeable.

                      So I think you will be OK with the notes assuming you can absorb the liquidity risk.

                      BTW, if you like the name, EFC-B is still kinda cheap. It’s low coupon but floats at 5 year treasury +5% in 3 years. I am adding..

                      https://www.ellingtonfinancial.com/static-files/d61c74f0-d840-46b7-9793-0bb352e8ec1d

                    2. Maine–I’ll look it over and see if there is something there for me. A small position might be appropriate–a starter so to speak.

                    3. very interesting comment. “EFC is one of the best run MREITS.”

                    4. Also consider EFC-A? Floats 10/30/24 so chance for a good short-term profit?

                  2. Hmm.. Is it part of an index that will cause some big ETF’s to all dump it at once, like PFF?
                    If that is the case, the price around 12/31 could fall off a cliff and down to the low 20’s or even high teens.
                    Time to put in a ridiculously low limit of $20 and see if it hits…

                2. I was really asleep at the wheel on AIC. I still owned some shares, which I sold this morning. I may repurchase in January when (I suspect) the price will have dropped more. (I could be wrong – I usually am).

                  1. EFC is more of a financial services company like Edward Jones not a MREIT unless I am confused?
                    Thought that was why they are buying Arlington, another asset management co.

                3. I am in on this one today too. I might set up some GTC orders to try to catch it further down the pricing ladder.

                  Fingers crossed that I get it lower and it doesn’t blow up between now and the maturity dates.

              2. AAIN has a maturity date of 8-1-26 so if it is delisted and drops more might be a good time to buy.

      1. Won’t they be gray mkt ( as in screw the holder- sell only)??
        “Arlington has not made arrangements for the listing and/or registration of the Senior Notes on another national securities exchange or for quotation on another medium.”

        “another medium”- as in no OTC gray mkt? No quotes at all?

          1. And…?
            If anyone sells now, they won’t be able to by-back at a lower price when gray.
            But could buy before last trading day if lower.

        1. Gary, yes if you need to sell. That is unless someone makes a market for them. Like the LTSL

      2. I see no mention of treatment AAIC pr B & AAIC pr C continued listing or symbol change etc… The C floats in March at plus 5.66 over 3ml libor (likely switch to 3 m Sofr+.26)

      3. Hmm- delisting the notes, but converting preferreds to EFC p’fds– as usual, they pick on what I have (AAIN). What’s the deal with two separate announcements on this?

        Whatever- sold it, can wait to see if it drops.

  8. Charles,

    Not sure if you’re referring to FGN or APOS.

    FGN: Looks like just a little less than a full quarter’s payment.
    Interest started accruing Dec 6.
    Ex-date is Feb 29.
    Not sure this is the way to calculate the # of days of interest for the 1st coupon, but 12/6/2023 to 2/28/2024 is 85 days. So less than a full quarter.

    APOS:
    Not sure what’s going on with this baby bond. I see why KingCash is confused. NASDAQ site says 1st coupon’s ex-date is Feb 29 (record date March 1, pay date March 15). The IPO prospectus and FWP filing say the 1st payment is December 15th.
    It started accruing on August 23rd, so whether the ex-date was end of November (for 12/15/23 pay date) or end of Feb (for 3/15/24 pay date), it’s more than a 90 day accrual period.

      1. I got a 1000 shares as I called Vanguard and they got it set up to online trade for me this morning.

        1. Thanks for posting about Schwab having it available on the Edge Platform. Yeah – a pain to get it. But, I did and was able to purchase it.

          1. Meanwhile at ally, it’s there. It’s showing the symbol, bid/ask, day hi/low – but when you go to make the trade you get “invalid symbol.” I know if I called they would initiate the trade for me.

        2. Well, that’s a first that they had the symbol set up on SSEdge before schwab.com.

          Another option in that situation is to call and have them place the trade, and ask them to waive the fee.

      1. Shareholder287 – FG is the last standing independent company. I think smart money is betting down the road, one last buyout is gonna happen here which has been the trend now for several years in this space.

        If you pull up a chart, you will see FG had a huge pop in conjunction with the timeline when Brookfield announced it’s buyout of AEL. AEL was FG’s last direct competitor that was still trading publicly.

  9. CCLDP and CCLDO

    CareCloud, Inc. (the “Company”) is hereby furnishing the following information under Regulation FD:

    On December 11, 2023, the Company issued a press release announcing that its Board of Directors has suspended its monthly cash dividends for its 11% Series A Cumulative Redeemable Perpetual Preferred Stock (“Series A Preferred Stock”) and its 8.75% Series B Cumulative Redeemable Perpetual Preferred Stock (“Series B Preferred Stock”) beginning with the payment scheduled for December 15, 2023. The suspension of these dividends will defer approximately $1.3 million in cash dividend payments each month.

    1. Trading in the CareCloud stock was halted this morning. Doesn’t look good for CCLD, but there could be some residual value if they can sell their EMR/EHR business.

    2. Have Never encountered this before ! CCLD Board of Directors declared dividends on both Preferred on Nov.3 ; for Dec, Jan, and Feb.
      Today they announce they are suspending those same dividends .

      1. Yes – when (if) they zero out all of their shareholders and convert all of their debt to equity, replace executive management and BOD then emerge from BK the future of the business will be slightly more solid than it is now!

        So it is true (ish)

  10. Still showing APOS X dividend in February. No payout in December.
    Guess I bought it too early. Sorry to keep mentioning it but it’s very confusing.
    FGN the same?

    1. Arbor Realty (NYSE: ABR) announces that its board has approved an increase to the company’s share repurchase program authorizing the company to repurchase up to $150 million of its outstanding common stock. The share repurchase program has no time limit and may be suspended, modified or discontinued at any time.

    2. KingCash,

      I see this: the ex-date for both APOS and FGN = Feb 29.

      My source for APOS:
      https://www.nasdaq.com/market-activity/stocks/apos/dividend-history

      My source for FGN is page 23 in the IPO prospectus, which states the record date is March 1. Thus, the ex-date is Feb 29.
      https://www.sec.gov/Archives/edgar/data/1934850/000162828023040352/fgannuitieslifeinc424b4.htm#i20bbf589816e495d853a488f5a1c76cd_400

      “Interest on the notes will be payable quarterly in arrears on March 15, June 15, September 15 and December 15 of each year, beginning on March 15, 2024, to the persons in whose names the notes were registered at the close of business on the preceding March 1, June 1, September 1 and December 1, respectively.”

      1. So mbg, first payment is a partial and full quarter’s payment then? So all you would need to do is own before next ex-dividend date.

    3. King, some brokerages screw things up, or is given incorrect info from supplier. I would relax concerning APOS as it hasnt hit payment time per prospectus. And even then I would wait a few days. FWIW I have issues showing exD from last March and they have paid out a couple times since.
      APOS..………Interest on the notes will be payable quarterly in arrears on March 15, June 15, September 15 and December 15 of each year, commencing on December 15, 2023, subject to the Issuer’s right to defer the payment of interest as described under “Optional Interest Deferral” below.

  11. Was wondering how safe TELZ dividend was and decided to sell. Now Friday’s news says co-founder Charif Souki has been removed from the company. Their stock TELL and bond TELZ are up so the market thinks that was a positive event. We’ll see that happens monday.

    1. I sparred a few rounds with someone last year on this site claiming that this was the investment of a century, and how Charif was a god among gods. I would not have invested in it then, and I would not now. But the idea of taking the short road and living like Rida the Moron is a growing cancer that shows itself here at times. If rates hover where they are, or takes a few years to crawl and slide down, we are going to see more carnage for companies that started in the nearly free money age. Reminds me of the internet and dot com days. Just have internet or website in your barely (minimalistic) business plan and millions were thrown at your startup, venture capitalists were walking over each other to be first to give you money, …

    2. danzeb,

      They did this just to buy time. It will not change anything. I also had some and sold it for a loss a while ago. I am normally a person who buys and holds but this one was in my high risk bucket. I sure don’t seem to have many high risk ones left. I tend to get out before it becomes a total mess because I watch them closely.

      Souki will still be on the board. He is no longer CEO. They did not mention who the new/interim CEO is. If you look at the financials they are limping along for another few months unless they can pull a rabbit out of their hat. They issued a going concern warning already. Eventually they will just run out of other people’s money.

      This might just be a bit of short covering and then it will continue to go down.

      1. You know.. i was just reading comments on SA and someone mentioned he was not the CEO. Eh.. I don’t care what position he was in. To me he was the leader of the company and effectively the chief all this time.

        “It was founded in 2016 by Charif Souki and Martin Houston and is led by President and CEO Octávio Simões.”

        They are the same group of people all this time. Just moving chairs on the titanic.

    3. Monday and TELZ is up over 9% and TELL is down 20%. When TELL was looking weak Monday morning I got out before the big drop. Did ok on the TELL one since I only paid 0.53 for it. Time to wait and see what happens over the next few months.

  12. Anyone been able to buy FGN today, it’s up at Fidelity but unable to trade so far due to no last price available.

    1. Picked up some at Schwab for 25.22. Could not place the order through the web interface – had a bond broker place it for me (waived the transaction fee).

  13. SAFE BULKERS C and D Cumulative Redeemable Perpetual Preferred Shares
    Ticker Symbol: SB-C CUSIP: Y7388L129
    Ticker Symbol: SB-D CUSIP: Y7388L137

    8% Coupon on Both of these. They popped up on my junk scan because they shockingly didn’t even flinch during the Oct/Nov sell off. You can still get them for pennies under par. Additionally they just announced a 5M common share buyback program.

    Also wanted to mention:
    Morgan Stanley, 6.375% Dep Shares Fixed/Float Non-Cumul Preferred Stock Series I
    Ticker Symbol: MS-I
    CUSIP: 61761J406
    Rated: Baa3/BBB-

    This is now a 6.375% perpetual FIXED. Will not Float and is trading now a few pennies under par.

  14. Schwab SSEdge transfer over to the TD trade page ….. any problems to be alert to ???
    Have heard that in order for Schwab client to do the required move means a delete of SSE and sign up to new trade page. Thanks…..

  15. Reinsurance Group of America, 5.75% Fixed/Float Sub Debentures due 6/15/2056
    Ticker Symbol: RZB
    CUSIP: 759351802
    Exchange: NYSE
    Rated: Baa2/BBB+

    Watching very closely. Yield now up to just under 5.90% and trading within 70-80 cents of the Oct/Nov low. Price initially recently shot up to $26 but just last two days down to $24.56

    In June 2026 floats to 3 month applicable LIBOR replace + 4.04%. If you can lock in now at 6% yield, not a bad place to park your cash, even if they get called in 2 1/2 years, you’d also make some vig on the par discount price.

        1. Many times you can instruct desk to obtain “offer wanted” on desired quantity … Quarterly coupon will reset 12/15 from current 8.336

          1. Great heads up Jerry.
            Nice pickup Maine. IBKR is unbeatable.
            2WR thanks for the succinct DD on ENB preferreds. Finally getting around to crunching #s on that.

            1. nope – not tired of hearing people gush about IBKR on the bond side. Your execution on RGA cusip 759351AE9 only reconfirms what you’re experiencing.. I appreciate the summary… Being as slow as a luxury cruise liner trying to stop, another little nudge like this will merely reinforce the idea of moving some funds around once my TDA account gets Schwabbed in March…. BTW, this market price on RGA cusip 759351AE9 doesn’t seem to make much sense given its rating, does it….. Anyone understand why it’s so cheap?

              1. IBKR is hands down better than the traditional online platforms at Fidelity and Schwab if you want to place trades quickly. Fidelity and Schwab require too many manual entries and multiple screens.

              2. I assume long maturity floaters are excluded from the majority of instl mandates. They simply don’t fit into a “bucket.” Said another way, they would represent large tracking risk to their benchmark.

                Similar story with the LINCOLN issue: 534187BN8

                1. Hmmmmmm, it sounds as though there may be a bifurcated whole new world out there to explore based on these prices – last trade on this one I see is 65.60….. Stop tempting me to start looking more into these kinds of issues… lol… Do you happen to know if there’s a way/place to set up a search for comparable long maturity F/F rate issues? I’ve not thought about these at all since in general I don’t like long duration issues… Yes the ENB reset preferreds have been the exception for me…

      1. Anyone have the prospectus for 759351AE9? Are these regular subordinated (Fitch BB+) or jr sub (Fitch BB)?

          1. Thanks. How are you able to find these prospectuses? Looking for Lincoln 534187BN8 if you have that one handy too.

            1. We had this swap of how to’s just this week I believe…. Grid’s got another method which might be more efficient but I put the CUSIP into Fido’s News and Research/Fixed Income link (if you have a Fido account) to find the dated date of the issue. Armed with that info next go to EDGAR @ https://www.sec.gov/edgar/search/#, set parameter of filing category to “registration statements and prospectuses,” fill in for the issuer’s name or symbol, set the date range for the dated date plus or minus a month and there you go – prospectus at your fingertip. It gets a little hairy if you’re looking at some of the big banks who seem to issue a barrage of prospectuses daily it seems, but most of the time there’s only one or two listed and they’re usually the preliminary andd the final of the same issue.

  16. General American Investors, 5.95% Cumulative Preferred Stock, Series B
    Ticker Symbol: GAM-B
    CUSIP: 368802401
    Exchange: NYSE
    Rated: A1

    ALERT: trading down here well under par now to 6.10% yield and within 60 cents of the 3 year lows.

    1. Thanks theta–very nice issue to hold in a sock drawer. They could have called it many times, but didn’t–great quality preferred.

    2. I was purusing the website and General American Investors recently published this alert:

      “NEW YORK – Dec. 6 – The Board of Directors of General American Investors Company, Inc., a closed-end investment company whose common and preferred shares are listed on the New York Stock Exchange (NYSE symbols – GAM and GAM Pr B, respectively), renewed authorization for the repurchase of up to 1,601,553 outstanding shares of 5.95% Cumulative Preferred Stock, Series B when the shares are trading at a market price below the liquidation preference of $25 per share. To date, a total of 398,447 shares of Preferred Stock have been repurchased and retired. This program is separate from, and in addition to, the common stock repurchase program.”

      1. GAM-B was one that should have been called years ago. The speculation bandied about was their actual fund was an underachieving fund and with many of the same people owning the preferred also, they didnt want to infuriate the owners of the preferred with a call being many owned the fund too.
        So a buy back program from the market would side step that problem to a degree.

        1. Grid, so would you agree that GAM-B will remain pinned to par indefinitely, for as long as it is permitted to exist? I decided to pick up a minimal amount of 100 shares, and hold it until such time as a call is announced.

          1. It certainly wont hurt, Inspy. But it largely already doesnt get exposed to too much downdrafts anyways. Its 10 year low is still over $23, and even during GFC when most preferreds cratered close to 50-75% it just sagged to around $20 at nadir. Its been callable for 15 years. These type of preferreds during low interest rate periods are a direct drain on the fund it supports. Yet they kept the preferred outstanding during ZIRP to detriment of the actual fund. That tells you they didnt have the courage to redeem it to piss off the dual shareholder owners. Certainly a solid issue.

            1. Thanks for the info. I have a bond maturing in a weeks time, will look to putting some of the proceeds into more GAM-B.
              A safe holding yielding 6% is fine for me, at my age and stage in life, I am focused on capital preservation and steady income rather than growth.

              1. That’s a great point Grid alluded to. Ideally if you can lock in a 6% yield and have a historical track record that the trading price had minimum pull back in worst possible times of the markets, that’s a good proposition. I’d be more inclined for that scenario vs. say chasing a 7-8% yield and then have a 50% draw down and have to try explaining that one to the wife.

      1. Hey Stephen I know of the firm but would not want to assess their track record. I typically use these reports as a starting point for further research rather than take them at face value per se.

        I do have an opinion on CRE debt generally which is negative as indicated.

      2. Spending more time on this there are a few things in the report which are highly relevant to the CRE space and also mREITS more broadly.

        One part of the analysis that is noteworthy is the focus put on the use of swaps to hedge SOFR risk. What is interesting here is that mREITS like AGNC suffer from a similar problem. AGNC (for example) have a rather large swap book which has (to a degree) protected them from the explosion in SOFR. The question is what happens when those swaps run off. The report postulates that BXMT (indirectly) has the same problem due to policies requiring their loan counterparties to swap out SOFR risk over the loan term.

        Also – The credit part of the analysis presented in the presentation leans heavily on a subset of BXMT’s loans which are available in CMBS securitizations. These loans are visible to analysts at Muddy Waters. I like this part of the analysis and it is, I think, broadly instructive.

        What’s noteworthy here is that the report highlights a particular loan on 444 Michigan Ave (Chicago – not Detroit 😉 ) which matures in Jan 2024. I feel that comparing how this loan plays to the projections the report is an early indicator of the utility/validity of the analysis presented.

        In any event, I generally want to take some short positions now in financials particularly those with credit exposure. I would do this by selling calls outright or call spreads. So my inclination is to put on a *small* position timed for Q1 and see how things play out. I would then build (or exit) the position based on performance.

        The general thesis of CRE refinancing going particularly poorly in 2024 is certainly one that I agree with. The question is how badly is BXMT exposed in terms of unreserved credit risk. This report has a view, and 444 Michigan Ave is an early indicator. Only time will tell.

        FWIW

        1. Thanks August. I think there maybe multiple layers to the storyline. Don’t forget big investment funds like this hav been moving money around within their holdings, bringing in new money and trying to compartmentalize losing investments by off loading or setting up subsidiaries to hold the toxic stuff in such a way any losses are not their responsibility. I wouldn’t be surprised if it takes a while for serious meltdowns to occur.

  17. Looks like the first ZIONL floating rate dividend will be $0.6042, payable 12/15. Ex date was 11/30, but I don’t think they announced the amount until now.

    1. A BDC–common pays a little over 11%. Back in ’07 it was about $74, but has recovered well into the $13s since the ’20 low under $4

      1. ted–being a debt issue that would not be normal (preferreds yes–debt no). Normally one would need to call the brokers ‘bond desk’ to inquire about buying it early, but likely you will able to get it very near $25 (plus or minus a dime) when it begins to trade on the exchange.

    1. I read with no great understanding–in fact no understanding with regard to how it might effect me–the article you referenced, but as a holder of LTSA do you think or know whether it would have any effect on those shares?
      Thanks for your trouble.

      1. I believe OSAIC is eventually desiring to go public. imho, it wouldn’t be a good luck to screw their preferred issue before going public and if they did, I don’t believe they would have a way to pay a common dividend without paying the preferred, even if it stayed delisted. Maybe before going public, they would stinky tender the delisted preferred?

        Its an interesting scenario that I would welcome expert feedback on.

        1. legend vs,
          What information makes you believe OSAIC wishes to go public? Not disputing, as I don’t know. Also, if it wished to go public, why would it be selling a 20% market share? TIA.

          1. It is stated in the article. Looking for outside investors stakes, those folks probably want a higher return which they could get on the public markets, in theory.

            In the end, its a very opaque company , so don’t know.

          2. Bloomberg originally reported that Reverence Capital (the parent of Advisor Group, now rebranded as Osaic) was interested in selling a minority stake in Osaic last Friday, December 1, 2023:

            https://www.bloomberg.com/news/articles/2023-12-01/reverence-is-said-to-seek-buyer-for-2-5-billion-stake-in-osaic

            Gift link, good for 7 days:

            https://www.bloomberg.com/news/articles/2023-12-01/reverence-is-said-to-seek-buyer-for-2-5-billion-stake-in-osaic?accessToken=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJzb3VyY2UiOiJTdWJzY3JpYmVyR2lmdGVkQXJ0aWNsZSIsImlhdCI6MTcwMTg3NzY2NSwiZXhwIjoxNzAyNDgyNDY1LCJhcnRpY2xlSWQiOiJTNFpUTzVUMEFGQjQwMSIsImJjb25uZWN0SWQiOiI3REVFMTNBRjU2Nzc0NEE0ODQ4RkRCNDI2M0Y1Mzc5QiJ9.4lH76BE4F_2j8xCpGmBKnDmRZLP7STDnDHHuVm–QgE

            Here’s an interview with Advisor Group / Osaic CEO Jamie Price that has a discussion of an eventual IPO or “liquidity event”:

            IN: The company has said this process of creating one broker-dealer will take 18 to 24 months. Can we expect an initial public offering after that, say in the summer of 2025?
            JP: At the board level, we haven’t had a conversation yet about an IPO or liquidity. We could probably do an IPO today, based on our size, but we’re a little distracted with the rebranding and One Advisor Group push. But we will ultimately have a liquidity event. There is no doubt about that.

            https://www.investmentnews.com/advisor-groups-jamie-price-talks-about-the-firms-rebranding-237997

  18. SLMNP – Wow! Did you see the Big Dump that went on on SLMNP at the close today? It looks like somebody managing big money left no less than 25 POINTS on the table by selling 8155 shares in the “expert’s market” at $815. Those same 8155 shares seemed to have retraded soon thereafter at 820. He must not have known that they can be put back to LYB at 848+ at any time… That’s over $200,000 just given away to the “experts,” and we didn’t get a chance to buy a single share…. Least I sure hope that’s the only viable explanation……..

    1. I keep open buy orders on SLMNP and I got no fills. Wish they filled the retail orders.

    2. I sold my few shares of SLMNP from my taxable accounts for their losses right after the last divi. It had been a nice payer in my sock drawer. I won’t try to re-enter.

      I did a similar thing with AILLN – got out in the $80s for some modest tax losses and got back in in the low $70s. Happier with that basis.

  19. I received notice from my Broker of a corporate action for a partial redemption of C-J. It only mentioned they’d let me know if I was impacted. Anyone seen or heard more on the redemption?

        1. I know why, Tim. No doubt it’s colder in Minnesota than Vermont. Key strokes take longer.

  20. TLT ~ taking off with recent rate softening…since Oct 19, has moved from $82.42 to $94.32.

      1. Tim, wasn’t CORR brought to market and run by the same people who run the Tortoise funds ? I think you followed those CEF’s 8 or 10 yrs ago ?

        1. Charles–I hope not, but I don’t know. The Tortoise funds had decent preferreds many years ago but haven’t had any for quite a while. All I know is CORR has been horrible and terribly managed.

      2. I thought APOS would be paying a dividend this month. I guess not?
        How long do I have to wait? MW said X dividend in February.
        Tricked again.

        1. King–I see that the interest payment is on the 15th. From the prospectus–

          Interest on the notes will be payable quarterly in arrears on March 15, June 15, September 15 and December 15 of each year, commencing on December 15, 2023, subject to the Issuer’s right to defer the payment of interest as described under “Optional Interest Deferral” below.

    1. Sailor, I bailed on this stock years ago when it was in the 30’s They constantly bought assets and sold them, each time it was something of lower quality. When they sold the oil storage tank farm in Portland, Bought a company that handled disposal of waste water from oil drilling a potential future toxic waste problem I sold and didn’t look back.

    2. After reading the prospectus, I disagree with the article. The delisting has to be accompanied by a Change of Control to force redemption.

        1. The press release says they would have to redeem “the Company’s 5.875% convertible notes”, not the preferred.

          1. You’re right – I saw what I was looking for, not what was there. Mea maxima culpa.

              1. The $175 million sale to Spire was meant to help service the 2025 debt issue anyway so whether its in the near future or 2025, its something the company had to prepare for anyway.

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