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  1. May not be very actionable: Looking to reinvest QDIs from last divy cycle. Only morning scan showed up poosibilities of IPWLK a cum util and STT-E IG Bank.
    As an aside to those who mention Y to C and the math…some new independent researchers may not know to Google: ‘Yield to Call Calc’ and use that. I have seen it mentioned several times and BobDE reminded me lately to do the math and be very realistic.
    Happy Hunting, JA Trying to get ready for a long summer trip and for the first time the funds to ‘show me the retirement money’. Woohoo, guaranteed I’ll be at a library or Starbux somewhere keeping an eye.

    1. Joel, I hold both IPWLK and STT-E for a while now, satisfied with them.
      Was very fortunate to have bought IPWLK below par about 2 months ago, when there was a seller getting out.
      I believe Grid and a couple others from here were able to snag some as well.

      Be on the lookout – if IPWLK goes below $101 grab what you can.

      For STT-E, the call risk is the area of concern. First Call date is 12/2019, and probability is high they might call.

      1. Another one for consideration is NTRSP, a 5.85% Preferred from Northern Trust, IG rated. First Call in October, and presently trading right around par+1 div.

        This seems to be what Grid calls the “Call Fear” environment, where threat of call is high.

        If bought now, the Oct dividend offsets the premium, and you net out at break even if called. If not called, one enjoys a 5.85% yield until whenever it is called.

        I own this issue, and have received couple dividends already, so intend to hold until call.

    2. Joel – The best bond yield calculator I’ve been able to find online is a Fidelity product but available to all at It’s set up to be able to use on $25, $50. $100, $500, or $1000 par values and you set all the parameters including actual maturity, call date, and call price etc. You can calculate yield or price and set whatever settlement you want. It then shows you yield to maturity, yield to call and interest which it assumes to be accrued. You can then reset the price subtracting the accrued to figure the actual yield on stuff like baby bonds that trade flat or preferreds to calculate yield to call.

        1. Just make sure you put par yield into calculator not current pricing yield. That is the one I use. I used it so much over the years I can mostly “eyeball” it close enough anymore so I don’t use it much anymore.

  2. For the TSCAP and TSCBP owners:

    • Net interest income (NII) grew to a record $31.3 million, increasing 8.7% from the prior year period and 3.1% from the linked quarter.
    • Average deposits grew to $5.34 billion, up 30.4% from the same period last year and 6.1% from the linked quarter.
    • Average loans grew to $5.46 billion, up 24.8% from the same period last year and 5.5% from the linked quarter.
    • Private banking loans surpassed the $3 billion milestone to grow to a record $3.19 billion at period end, increasing 28.2% from one year prior and 6.9% during the quarter.
    • Commercial loans grew to a record $2.48 billion at period end, increasing 19.9% from one year prior and 5.2% during the quarter.
    • Non-performing loans (NPLs) and adverse rated credits declined to 0.04% and 0.47% of total loans, respectively, at period end, while allowance for loan and lease losses (ALLL) increased to 640.29% of NPLs.
    • Non-interest expenses grew 9.0%, from the prior year period, and the bank efficiency ratio was 55.16%.
    • 85% of Chartwell’s investment strategies surpassed their benchmarks for the trailing three years and 75% surpassed their benchmarks for the trailing five years.

  3. Trade Triggers and Limit Orders –
    Maybe you guys can give me more guidance than I get attempting to talk to TDA or Fidelity. Right now I’m trying to buy a couple of thinly traded preferreds and also sell one unrelated. All have relatively wide spreads and what happens is no matter where I set the bid or the offer, the activity always happens in between or I get shopped by an .001. So what i was thinking was perhaps I can use triggers or stops to not show up on Level II UNTIL a particular price happens. For example, one has a present quote of 25.50-27.50. I want to hide my interest in selling UNTIL a real trade happens at 25.80 or higher. I’m willing to give up that first trade happening in exchange for hiding my interest until that 25.80 trade happens, Is there a way to do that? Fidelity claims that if I use trade triggers as illustrated and the last trade yesterday was 25.80 but no trades have yet happened today, the trigger will still execute vs the prior day’s trade thus negating the whole purpose…

    1. 2wr, I’ve been in this same situation multiple times. My experience has been the market makers appear to cornering the trades and attempting to force retail trades at the bid and at the ask, then trade for themselves and their pals in the middle. Maddening.

      1. That is the way I see it, plus there are computer “front running” bots that can intercept trade before it transacts. One time Inspbudget and I tried to transact a meet in the middle trade of CNLPL. We coordinated online and did it together. The market maker wouldnt let the trade transact and it was held up for 5 minutes. Until they were finally sold at a tiny fraction above our meeting price.
        Sometimes it works opposite though. When I bought LXP-C recently I had a standing bid unmolested and then ask price dropped to 53.40 so I just hit market to be done with it. It actually transacted at 53.15 which was lower than my standing bid was. Speaking of LXP-C. I sold off 3 odd lot shares today to stay out of margin (free trades) from a purchase today. I humored myself as ask was 53.90 and bid was 53.50. I sent it market order and it went at 53.708.

        1. Thanks, Guys…. For the record, the specific issue I’ve been getting out of is GLADN. Sold a bunch today and some yesterday…It just dawned on me that I’ve owned this because of the constant warnings from GLAD each quarter that they’ll call this at the first opportunity and that date is 9/19. They’ll call because of the language in the prospectus that prevents GLAD from taking advantage of the increased leverage now being allowed BDCs by SBCAA. They’ve mentioned it in the last 2 conference calls prior to this one where nothing was said most probably because the analysts felt no reason to bring it up once again. It goes ex-div on Friday I believe but including the July dividend there’s only .375 cents left in monthly divs but the bid’s been no less than 25.54 and I managed to get sales off at 25.75 and 25.80…. Based on the words of the CFO and CEO in Jan ’19 and March ’19 conference calls, it’s hardly even in question what they expect to do. You might be able to squeeze a bit more out by waiting for the ex-div to pass, but I’ve chosen not to wait…. From Jan, ’19 cc, “As we’ve covered in the past, we have an outstanding preferred stock issue that has a separate and distinct leverage covenant. It does not modify with the revised regulatory change. So in order to increase our leverage above 1:1, we have to call that preferred stock out. That preferred stock was issued in 2017 in September and at a 2-year noncall. So the call date for that preferred is September 19, at which time we could refund that, eliminate the underlying covenant and take advantage of the increased asset level flexibility of the board approval.” Just in case other III’ers also own GLADN and, like me, allowed the upcoming call date to creep up on them without taking action up till now…. I’ve still got a few more to sell, but I’ll probably hold those now till after ex-div…

    2. I have same problem and have not found a work around. If you don’t have a bid in there is no way it will execute and if you do, you get sniped INSIDE your bid. I’m willing to pay 26 but the trade executes in front of me at 25.99.

      All that talk about the game being rigged? It’s true.

      1. Bob, I deal with that also, but can smell it out sometimes. Today I wanted to sell my 500 PPX today I only recently bought a couple weeks ago at 25.35ish. My ask sat at $26.01 getting jumped despite low ask. So a backwall bid of $26 popped up and I quickly let them fly at Market price. And of course it transacted at $26.0247, above my ask price. I usually can smell it out on right occasion and force their hand.

          1. Bob, it doesnt do a thing…Level 2 quotes a faux feel good platform that is really meaningless. Level 3 is what you need as that is where the good stuff is at. And few people have possession of that besides the market makers.
            It usually works like this on a liquid issue…If you keep getting jumped, the bid creeps up but no shares have traded for a few minutes, you know the fix is in. I make sure I have a comfortable bid wall in case I am wrong, but it is never needed.
            The bid was a penny below showing 100 shares. I knew the bid share was a lie and I just let them all fly at market as the volume was up today. Would I do this with a say CNIGO? Hell no! 🙂
            Too hot outside today so I played market today. Finished selling some of my bloated SR-A position at 26.71 that I started selling a bit yesterday. All be darned if I didnt buy them all back at 26.46 today. I like owning my local ute I can trust…Wish we could go back in time and just have 1/3 in local ute, 1/3 in 6% CDs, and 1/3 Ma Bell (the old Ma Bell) and just not do anything, lol.

    1. 2WR, I just got home from a nice 73 today. I saw that 20,000 shares moved today. I knew you had some idle money you were putting to work. But I had know idea 20 million dollars was “idle cash”. Gee you are WAY out of my league!
      Tim, you are close…About 115,000 outstanding. Must have been some organized trade. I doubt 1000 peons like me suddenly decided to sell our small lots to 2WR, all at the same time!

        1. That was 18…Had 16 putts for birdies…Made 1…I 3 putted twice…Im a horrific putter. Added closure..Play with oldies so we play white tees. That was only 5900 yards. No championship tee action going on here, lol.

            1. Grid and Bob, Played St. Andrews/Strathtyrum last July and shot an eagle on I5. We do not have to discuss the other 17. If I previously indicated it was a birdie I must have been mistaken.

              1. Im jealous Alpha…The eagle of course but St. Andrews the most! I got a standing offer to go next summer and play St. Andrews with another group of people. The trip is 16 days and a different course every day. I want to go but am worried my girlfriend wont be happy if I am gone that many days. I told her about the trip and she was positive. But then I remembered later I didnt mention the length of stay. Im afraid this isnt going to go over well. I have a couple months to figure that out.

                1. Grid, Maybe the group will bring significant others even for part of the trip. It’s a fabulous destination. We stayed for a month and had about 30 in our group – all family. Scotland was in the middle of a drought when we there and we had zero appreciable rain the entire time. The fareways were tough though as they were dry – the ball would not stop. My wife said, “the most beatiful place she has ever seen”. Make it work Grid. And if you decide to go PM me and I’ll share any side trip info I still have. Be sure to remember to have lager and lime.

                  1. Guys, I didnt write my thoughts clearly, lol… Its a “man trip” of about 15 guys. I think I would be the only one under 65 and I am not near that at 54. Their wives dont care because they have been married 30-40 years… I live the life of having a GF of 12 years and we dont live together. I play under a different tilted set of rules that work against me unlike the long time married guys. Plus she works full time and that already gets under her craw that I dont. If you know what I mean, ha.

                2. Grid, tell her you will fly her to Paris and meet her at the end of your golf trip for a few days of romance in gay Paree!

                    1. Grid commenting from Paris: “Well, we were coming down the Eiffel tower and I got bored so I looked at my phone and saw illiquid such-and-such was down nicely on a market sell order so I bought 1000 shares at a 52-week low before we got an icee”

                    2. Alpha, Its tough out there. There really isnt anything to buy. I have done less the past month than anytime in 6 years I have been into preferreds. I bought a couple decent rounds of NYCB-U a couple weeks ago around 47.80 chasing upcoming divi, and smaller amount of LXP-C last week. And those were buy reaches for me. About it…Kind of tempted to flip out my trashy GLP-A, but nothing to buy to replace it. Not getting much liquidity/illiquidity price action movement, just general upward price drift in ones I would consider moving…if I had something to move into…
                      I really wanted to jump on some AHT preferreds last week to flip. And they have been coming back. But I never could find the nerve to buy them. The only thing I have really been able to accomplish is watching most of my posts being directed at Moron and his cronies being censored. Buffoons have the gaul to call NSS a “high quality bond” (I have no problem with the issue, its just not high quality which is defined as investment grade). Then these morons have the audacity to post they are smarter than Fitch, Moodys, and S&P and can rate credit better. And one of those nut jobs who thinks he is a better rater of credit (Pendynutjob) actually thought a true bond trades flat and buyer does not pay accrued interest. But he knows credit rating analysis…Ya, ok….

                    3. Grid, I have to confess to a dark satisfaction on also following Nomad’s alert that Beavis and B-head were up to no good again – and joining in on leveling a D-Day inspired assault on them in that “high-quality” NSS drool. I’ve come to realize they must be in another country as after a certain time of day our comments are not deleted until overnight. Their domicile may be part of their insulation from the SEC.

                      On the buying side, I probably deserve one upside the head for taking a position in RNR-F at this level, though I was inspired by the recently reaffirmed BBB, the QDI and the fact that I’m sitting on too much cash in the 2% bin. I don’t mind sacrificing on the yield as I’m still adding income, but will not at this point in the eco-curve round corners on the quality. Good call not getting into the AHTs I’d say, as if they gapped down one morning you could be stuck with them or forced to bail.

                      Grateful you introduced the ENBs as I’ll be happy to average down into EBGEF as long as the ratings hold. For some others, I’m cringing at the thought the right move might be to average up.

          1. Played with my friend’s son the other day. Been swinging a club since he was 2. He played the big boy tees and still blew it past me by 40 yards. . . He can’t putt though. He bought lunch 😏

      1. Splurging like this, no wonder I don’t have any idle cash left to get somebody else to mow……..

  4. AIY to be called:

    On July 12, 2019, Apollo Investment Corporation notified U.S. Bank National Association, the trustee (the “Trustee”) for the Company’s 6.875% Senior Notes due 2043 (the “Notes”), of the Company’s election to redeem the $150,000,000 aggregate principal amount of the Notes outstanding, and instructed the Trustee to provide notice of such redemption to the holders of the Notes in accordance with the terms of the indenture governing the Notes. The Company expects the redemption to be completed on August 12, 2019. Following the redemption, none of the Notes will remain outstanding. This Current Report on Form 8-K does not constitute a notice of redemption of the Notes.

  5. Regarding TSCBP: Anyone holding and have an insight as to why a Call 7-2024 @6.375% fixed until future float is paying out 2.3% annualized on div pmt 7-1-19?
    Math: Pmt on 7-1 = $.1461 per share x 4 quarters = $.5844 annualized / $25 par = 2.33% annualized??
    Am I just blind this AM? I see no news except an announcement of that exact dividend?
    Thanks JA

      1. I should have waited for the coffee to kick in. Saw TSCAP with full divy and common showing none. Wonder about Board declarations and motives sometimes. THANKS! JA

    1. Ken, all Rida has to do is tell the absolute truth and there will be no fireworks 🧨. There are many sophisticated readers that just will not sit back and watch him manipulate his loyal followers and automaton subscribers. Rida has made SA his bitch (first Million Dollar Man) and they let him pass through his junk as a “miss priced, quality baby bond”…
      If SA has any real control or ownership integrity they would NEVER allow this deceptive practice.

      i protegere eos qui se protegere non,

      1. Quality, quality, quality, hopefully 5%+, uncallable or years from call, not too much over par. Just pay me and I will snooze or sail away with a smile…


      2. I don’t know much just to clarify the value of my opinion. Lower rates are inevitable as it’s the present monetary policy solution to any downturn, apparently no matter how slight. Negative rates would thus be the logical, prudent, and sensible solution in a significant downturn. Not only is it the present economic policy solution, it’s politically popular too. The relatively few savers grumbling about low yields are drowned out by the roar of the crowd making their monthly payments on cars, houses, and whatever else they went into hawk for. Didn’t hear the roar when Carter was President. Bottom line is I expect ever lower rates, the continuing trend of the last 30 years or so. This is accompanied by the ever expanding rate of incessant money printing with ballooning national debt. Also very popular politically because it means free stuff to bestow on those both great and small. We have history to tell us how it ends, so no mystery there. It’s the same very time. Meanwhile it’s raining money.

      3. mikeo, I’m a Grant reader and appreciate his commentary. Still, we do not know with certainty what the future holds. I find myself hedging and hedging even as rates fall. Like Camroc mentioned, I’m staying well-into IG territory. Yield compression between IG and junk has gotten ridiculous. Risk-adjusted, and at current prices, the lower grade issues just do not pencil out over time. I know no more than the next bump on a log though I believe redemption risk and default risk are lined up on the horizon. Preservation of capital is critical. As for yield, at present, less may ultimately be more – simply by avoiding the riskier candidates.

    1. Mikeo, Mark has been in the game 45 years. Pretty common sense guy with humor mixed in. He is an income guy and likes closed end leveraged income funds barbelled with IG bonds. I enjoy his commentary.

    1. Fabrib, this is why I cant stand Rida Moron. The title is “High Quality”. That is a flat out lie. Its B1 rated just like its preferred sisters. The very definition of “junk debt”. Junk is not high quality. In fact it is not even higher quality jumk rated debt either. They are so lazy they dont even mention the credit rating leaving neophytes to think it is very safe…Now personally I have no problem with the investment reco of the issue, and have owned it often myself, but it is not high quality in any shape or word twisting definition of that word.
      They need to match their wording to represent the risk of the credit rating. High Quality and B1 are as similar as fat and skinny are to each other.

      1. I found it interesting how he mentions how Moody’s has taken it off ratings watch “negative” to make it stable but fails to mention that S&P actually downgraded NS and these in April, citing the exact opposite of the premise that they’re working down their debt levels… “NuStar Energy L.P. Downgraded To ‘BB-‘ On Elevated Leverage For Capital Spending Projects, Outlook Stable.” BTW, that means Quantum is wrong on their listed S&P rating on these.. To be fair, S&P does say they will be looking for NS to bring down leverage in 2020… The other dumb comment made other than calling this “quality,” and after making up all these excuses such as the deferral clause as to why these haven’t been called, was “NSS is unlikely to be replaced until and unless NS is able to issue another baby bond or preferred equity at materially better interest rates.” Well DUH!!!! So in this interest rate environment, this “quality” issue yielding 9% is in the eyes of the company incapably of being refunded at anything better then 9%… Yup, the true definition of quality.

        1. 2WR, this stuff infuriates me….Not whether to own NSS or not, (because actually in its proper sized purchase is definitely something to consider owning) but how the material was presented like you said. Its either shoddy, incompetency, or intentional misleading….What purpose of intentional misleading serve? Hmm, maybe promoting a relative illiquid investment onto 2500 marching order followers, and then release later to the gullibles reading for free? Then sell on a quick easy gain? Nah, thats crazy talk, that would never happen! So it just must be incompetent lazy research….Words have meaning…”High Quality” is not B1 mid rung junk debt with a 0-10% recoverability….No explanation either on why its rated the same as a preferred…Because they dont want to say if “crap hits the fan” it really is only a preferred. Or are not smart enough to know that basic fact. So why would “professional investment writers” omit important details?
          BTW, I posted a comment on article to correct the inaccuracies, and they never say the light of day…Hmmm, I wonder why….

      2. I just posted to Rida’s “professional” article:
        Comments1723 | Following
        Rida, your headline states “A High-Quality Baby Bond Yielding +9% – NuStar”; there is NOTHING high quality with this subordinated NSS debt rates B1; this rating is pure JUNK!
        Maybe you need to read just what the ratings mean: From Investopedia…
        DEFINITION of B1/B+
        B1/B+ is one of several non-investment grade ratings (also known as “junk”) that may be assigned to a company, fixed-income security or floating-rate loan. This rating signifies that the issuer is relatively risky, with a higher than average chance of default.
        The ratings assigned by the various ratings agencies are based primarily upon the issuer’s creditworthiness. This rating can, therefore, be interpreted as a direct measure of the probability of default. Ratings generally fall into two categories: investment grade and non-investment grade. Bonds that receive a non-investment grade rating are also known as “junk bonds.”
        I am asking you to PLEASE tell and disclose the entire truth. There are many here that rely on you and will act on your recommendations and buy/sell securities because of YOUR direct “professional” writing(s). Please also remind all your readers that you are getting paid per each page view click and have already recommended this security to your subscribers at lower prices that the (NSS) junk debt is currently trading at.
        In Latin we say…
        I protegere eos qui se protegere non, Nomad

        1. Nomad, “The truth shall set you free”…Well except on SA comments section. Be prepared to see that informative post yanked soon. I wont even bother replying as it will never see the light of day anyways. Better watch it, or soon you will only be able to give hand applause to any numb nut article written, like I have been relagated to, ha.

          1. Grid, I have been asked many many times if the SEC or FINRA has or is investigating Seeking Alpha and their “professional” authors for security manipulation or fraud. The issue is that we all have a First Amendment right, they have a disclaimer at the bottom of each article to cover their tush and the bar is very high as one would have to prove deliberate manipulation/fraud; this charge is extremely hard to prove beyond a reasonable doubt this purposeful scheme. I cannot understand why many readers blindly trust these “professional” writers that get paid per page view/click; just what is their credibility or trustworthiness. If one would only look at most of the authors track records; sadly, SA does not require REAL full disclosure: the exact price the security is being* recommended at, how many shares the “professional” author(s) owns (did they buy 1 share so they could say they were long the security or a million shares), what their “real” investment recommended track record is, what percent is this specific recommendation a part of their own or a controlled portfolio, any easy to access database with this information.
            I’m sure many of you may know that Brad Thomas replied to one of my posts asking for FULL DISCLOSURE and he publicly threatened to file a lawsuit against me (there are others he has threatened as well that post on III). I told him I would be glad to give him my direct permanent address so he would be able to serve me (I went to Law School and would welcome his filing against me). He eventually deleted his idle threat and I still have not receive any lawsuit Mr Thomas may have allegedly filed. Mr Thomas directed SA to send me an email asking that I NEVER post on his articles and unsubscribe from his “professional” writer feed. Mr Thomas is a failed real estate developer and was on the brink of bankruptcy (not sure if he filed) because of his reckless debt accumulation and poor choice of real estate projects. He even writes about these poor choices and their ultimate decision to stop developing properties. The best words are just PLEASE PLEASE PLEASE do your own deep due diligence before investing and buyer beware…
            Too much more to write and I’m typing this while on a seaweed filled island/beach.
            Smile Y’All, Nomad

          2. If people want to believe in these guys without doing proper due diligence, it is really their problem. I’m highly invested in NSS and a few NS Preferreds, so I won’t complain about the reco haha. I’m fine with owning them at these levels, decent return for the risk.

            1. Ken, I know you know, but I will repeat. I dont have an issue with NSS. Risk/reward is pretty decent and possibly the preferreds too. I just cant stand their misleading info.
              The writer just wrote another inaccuracy in comments section…
              The reason is that the yield of the baby bond is based primarily on perceived risk when it was issued- a point in time when NS was in a far more uncertain situation than they are today. The situation changed, but the yield did not. Since NSS can be called any day, that prevents the market from running the price up to what would be a reasonable current yield.
              Only part of that is true. I didnt paste all but he tried to say its yield trapped because it was riskier when first issued at the terms it has now…Maybe in his mind, but the REALITY is this…NSS was issued with a Ba2 rating. It now is B1…So his thought process is misinformed and lacking historical research. He is just yapping his feelings on the keyboard.

              1. Grid, I just posted to Rida:

                Comments1724 | Following
                @Rida Morwa my friend, are you aware that this (NSS) junk subordinated note was initially issued in 2013 with a Ba2 rating. It now is rated B1 and thus was DOWNGRADED from their higher junk rating. Is the rating agency misguided or wrong? All I am asking for is FULL DISCLOSURE, nothing more just to allow the reader to do their own deep due diligence before investing and they need exact, honest and correct information to make an informed decision.
                Wishing you profitable investing, Nomad

              2. Grid, I am not in any way defending these guys. They are like used car salesmen you see in the movies. Feel bad for people that 100% believe their garbage, but at the end of the day everyone is responsible for their choices. Hopefully they don’t lead the sheep off a cliff.

                1. Ken, I know you arent…You have to forgive me as I am in “rant mode”, lol… And personally I see why you have some skin in NS. I have been there a lot and may return again. I am not scared of the issue…..I just cant stand their misinformation game.Most of their articles I let go, because Im not interested in them and wont spend the time fact checking. But this one was in my wheelhouse……I am very dumb and it took me less than a minute to find NSS current rating and rating at issuance. Something this “professional” was unable to find or too busy to type in an extra sentence or two alongside “high quality”, lol.

                2. Ken, I’m sure we all agree everyone is repsonsible for their choices but I think in the case of Moron and Trendylizard the concern here is they’re predators. One can only wonder how many well-intentioned but uninformed readers thought they were doing their DD by reading through SA, finding Moron and paying for the service. And how many of those unsuspecting investors lost big on CBL, CTL, TOO and WPG and still don’t know why. Sad really. Not to mention any contrevening comments are deleted. For me, that makes it a scam.

            2. Ken, I truly appreciate your post (as many probably feel the way you do), but I vehemently disagree as the headline “A High-Quality Baby Bond Yielding +9% – NuStar”; is completely misleading and boarders on a blatant lie or manipulation. Just what is “high quality” about a junk subordinated note rated B1? What type of investor should invest in these risky securities that are rated B1 by a leading rating agency? Ken, I’m sure you are much more sophisticated that the vast majority of SA readers and certainly understand risk and reward, capital loss, asset allocation, rating agencies and their ultimate ratings, volatility etc. But I would believe that the average SA readers has little idea of any of these amplitudes and must have some measure of “honestly” and trustworthiness when they are reading “professional” research (that are getting paid per click/page view) as they will act upon these recommendations with false information. Are bars that over serve their clients responsible if they unfortunately hurt someone driving home? According to your logic, the client/drinker should have known better than to over indulge on a toxin (alcohol) and then not drive home because they should have known the ultimate consequences of their actions. SA (their “professional” writers, their management and employees) have a duty to protect their readers by not allowing false and misguided misleading information to be published that their readers could “hurt themselves” by relying on this false reckless information…
              Time flies over us but leaves it’s shadow behind, Nomad

              1. Nomad, Have your back on this. Just posted: Rida, Nomad is 100% correct. S&P experience ratings indicate the probability of a default on the issue at 16%+ within ten years. How does that translate to “high quality”? Are you implying your “opinion” is superior to the ratings of powerhouse S&P? This is a deep junk issue pure and simple and your opinion cannot change that any more than it did for for prior recommendations for CBL, CTL, TOO and WPG. Do you have the courage and honesty now to not delete this post?

              2. I get what you are saying Nomad, SA should have much better and detailed disclosure statements under all these articles that are pretty much advertisements for their private paid services. I think they get around this stuff by having most of these guys living in other countries. A lot of them say they are only giving advice or their opinions and nothing more, though I’m definitely 100% of the belief that they do indeed manipulate the market in these thinner traded securities for their own benefit.

                At the end of the day though, I lean on the side that sometimes you are better off failing at something or going with bad advice. That way you strive to learn more and not repeat your mistakes. I hope people listen to you but a lot of them are just sheep ready to get slaughtered unfortunately. I
                made my fair share of investing mistakes early on and still make some today, has made me a better overall investor is all I’m saying.

                1. Monetizing SA through skewed articles to collect clicks and members by non-licensed newsletter writers is pretty scary, IMO. Most probably don’t realize that these writers are worse than brokers when examining responsibility and liability. How many people follow these so-called “experts”? The day SA hailed the first “millionaire” writer was the last time I took that place seriously.

                  1. I try to post to keep the newbees from disinformation. Other people helped me understand their true purpose, so I try to pay it forward. Informed investors understand risk and reward and match it up to their goals so they are not a worry. I submitted 8 responses, 5 were never allowed, 2 were pulled and only 1 was left. They dont like 100% facts coming from certain people. The investment thesis is fine its the miscasting that is totally egregious (which they do often).
                    In a nutshell it is this… “Dirty Harry” was great and so was “When Harry Met Sally”. But you will never see “When Dirty Harry Met Sally”. A total miscast of actors. Just like “High Quality” is with “B1”.

                    1. Grid, I try to do the same thing. I’ve found several articles that exclude or minimize information material to their recommendation. It’s easy to confuse investment success with genius during a bull market. I’m afraid a lot of people will discover this the hard way when the next bear market hits. That being said, I do enjoy reading the comments on SA and often high quality commentators, including some on this site, call them out.

                      Just my humble opinion.

    2. Where to begin?

      Almost dinner time so I’ll keep this uncharacteristically short.

      If Rida had done this as “High yield on a high risk issue”, I would take no exception. It’s total financial porn what he does, and this one is perhaps the worst (best?) example of this I’ve seen. Single B by S&P in April.

      Sad to say, but I think many just leap without looking. Zero due diligence.

      On a related note, I am quite convinced that these guys front-run. I’ve said that on SA but the comments get deleted. I would love to see someone put the case together and bring it to SEC. I’ve looked at pricing patterns around their recommendations and they are classic front-running patterns.

      If anyone out there has the time I’ll be happy to offer some direction.


      PS – I own 500 shares of this POS but at least I know it’s a POS!

      1. Bob, the playbook is simple…Buy up some relative illiquid high yield issues. Then build a case for it in article. Release it to the lemmings…Then sell into the general public release for cheap naives to sop up the higher price…Rinse and repeat….

      2. Loved your SA post Bob. I cant get “Four score and seven years ago” posted without a delete. You post a few more like that one, Bob and your fate will be the same, lol.

        1. It’s like the Soup Nazi. The post of which you speak will be gone tomorrow. That is the pattern.

          Large amount of blow back on this one. Maybe things will change. Nah.

          1. I took the opposite position last week when they praised ECC and were negative on OCCi. OCCi dove almost 6% on release of the “research” so I bought held a couple days and pocketed some change.

      3. Well, I was right. MY SA comments regarding the Rida gang got deleted. They initially got published so I’m speculating they got taken down based on a complaint from Butch, I mean Rida.

  6. Just when you thought interest rates were headed lower, they are heading up. Should we be concerned? Everyone follows the fed and what they’re doing but no one seems to be mentioning that real rates are moving in the opposite direction. 2’s 10’s and 30’s have all moved up in yield. The Fed controls the short end of the curve so it seems odd that short end market rates have risen given the telegraphed policy. Am I looking at this wrong?

    Inflation was a little hotter in the latest report. What if next month inflation is again on the high side? Could it be the long awaited emergence of inflation is around the corner ? Could it be that the fed has been goateed into the coming rate cut when in fact they could very well forced too reverse course due to inflationary pressures ? Most think they made a mistake raising rates last December. It could be they are going to make another mistake by cutting later this month.

    The fed seems concerned about the global economic slowdown working its way into the U.S. economy but I thought their mandate was maximum employment consistent with price stability. It seems they’re considering veering from that mandate and giving more weight to global economic conditions. It’s hard to argue that we’re not already at maximum employment. There are a million more job openings than workers to fill them. Isn’t that inflationary? If pricing pressures emerge in the U.S. and the global slowdown accelerates what are they going to do ? I guess we’re going to find out who’s your daddy. Is the Fed a global central bank or U.S. central bank?

    I’m not in full retreat mode yet but as I said yesterday I am cutting back some of my holdings and raising cash. Maybe I’m too skeptical but when I see Goldilocks, I tend to want to run and hide. When something seems too good to be true…it usually is! If the Fed cuts rates later this month and the next core CPI report comes in on the hot side, I may have to accelerate my cash build. Too many preferred issues are not priced for an inflationary environment. They’re priced for a low rate, low inflation economy. I’m not sure this can continue.

    1. Retired, i saw that too. The numbers yesterday did come in hotter than expected. You would expect the fed to do nothing at the end of the month. What is interesting though is the negative rates in the rest of the world, it’s difficult to see how our rates can go up when everyone else’s are going down. Shouldn’t it balance, as more investment comes into this country won’t that drag rates down.

    2. The Fed moved too fast and impaled the short end on the intermediate rates and brought all of the fears of a recession signal onto the market. Add the real effects of the trade issue and we have the makings of a real economic slowdown worldwide. The problem is that the Ex-US economies do not have the ability that the US has to react to these issues. A good example is Germany which looks to be entering a recession already.

      A deflationary economic state is what Bernanke was brought in to avoid. We never really got escape velocity on the economy during his tenure for various reasons. The large debt load in corporate America is big but sustainable if the economy stays healthy. Growing US deficits will cause declining demand for money as rates should rise as our gov’t’s need for it grows. Throw in the demographic issue and the big institutional bond houses (Pru, etc.) see a 10 year at 1% eventually. Also, the duration play (going long duration) is over for now as the lean is higher and better to lock in 1st half gains (sell to shorten duration) versus getting the paltry 2% coupon on a carry trade for second half of year. The credit trade is also a carry trade now as spreads will be hard to narrow much further.

      1. The big conundrum is if rates will head higher due to expanding deficits or drop due to slowing economic demand. The appearance of MMT (Modern Monetary Theory) is also a little scary but not taken too seriously yet.

  7. CHARLOTTE–(BUSINESS WIRE)– Bank of America Corporation announced today that it will redeem all outstanding shares of its 6.625% Non-Cumulative Preferred Stock, Series W (the Series W Preferred Stock), and the corresponding depositary shares representing fractional interests in the Series W Preferred Stock (the Series W Depositary Shares) on September 9, 2019.

    All 44,000,000 Series W Depositary Shares (NYSE: BAC PrW) (CUSIP No. 060505344), each representing a 1/1,000th interest in one share of the Series W Preferred Stock, will be redeemed on the dividend payment date on September 9, 2019 simultaneously with the redemption of the Series W Preferred Stock at a redemption price of $25 per depositary share.

    Declared dividends of $0.4140625 per depositary share on the outstanding Series W Depositary Shares for the full current quarterly dividend period will be paid separately on September 9, 2019 to holders of record on August 15, 2019, in the customary manner. Accordingly, the redemption price of $25 per depositary share does not include any accrued and unpaid dividends, and dividends on the redeemed depositary shares will cease to accrue on the redemption date.

  8. Informational-‘ Quantum Online’ has caught up posting new IPO’s after being unable to do so for a few weeks. I don’t know if this data was posted here yet.

    1. At the end of the day there is no way for the citizens of California to avoid bearing the lions share of the fire risk in California. And that’s as it should be. If the legislature don’t step up on this then PG&E simply goes away and the state is then left to own and run (and insure) a fire prone electrical system. That would not be an improvement over the current arrangement.

  9. Germany has sold new Bunds that do not provide investors with regular interest payments for the first time since the aftermath of the 2016 Brexit vote, highlighting the scale of the rally in Europe’s fixed income market.

    1. I’m having a difficult time understanding why anyone would buy a bond that does not pay interest. Any words of wisdom here?

  10. This article makes me think we are close to a market top…
    Century Bonds Have a Breakout Moment as JPMorgan, Pictet Load Up

    Ben Bartenstein
    BloombergJuly 9, 2019
    (Bloomberg) — Century bonds are having a moment.

    Investors scored an average return of 19% this year on 100-year debt from the three most prominent issuers: Argentina, Mexico and state-controlled Petroleo Brasileiro SA. That’s almost double the gain for the benchmark emerging-market debt index.

    A dovish turn by central banks around the world has pushed yields down globally, prompting firms such as JPMorgan Asset Management, Grantham Mayo Van Otterloo & Co. and Pictet Asset Management Ltd. to seek longer-dated debt with higher payouts. The century bonds also offer higher duration, meaning they’re likely to outperform as rates fall. Worldwide, negative-yielding debt now stands at a record $13 trillion.

    “There’s been a scramble for any bond with some spread — the longer, the better,” said Guido Chamorro, a senior investment manager at Pictet in London, who’s overweight Mexico century bonds. His emerging-market debt fund has topped 75% of peers this year, according to data compiled by Bloomberg.

    “We wish more sovereigns had century bonds,” said Chamorro, who favors long-dated investment grade debt. Mexico’s 100-year securities look “very attractive” compared with 30-year notes from the sovereign or state oil firm Pemex, he said. Chamorro says he’s market-weight on Argentina’s century bonds, citing the lack of yield premium to shorter-dated debt. He doesn’t have exposure to the Petrobras notes.

    Tina Vandersteel, a money manager at GMO in Boston, said she prefers Mexico’s 100-year securities over Argentina’s for the same reason. Assuming global monetary easing isn’t fully priced in, century bonds could stand to benefit more, she said.

    Meantime, the possibility of bond buybacks makes Petrobras’s 100-year debt most appealing to Hari Hariharan, chief executive officer of New York-based NWI Management LP. He warned, however, that century bonds would “get slaughtered” if the Fed shocks markets by not lowering borrowing costs at the end of July.

    Zsolt Papp, a London-based money manager at JPMorgan Asset Management, said even though Argentina’s yield curve is inverted, the nation’s 100-year notes could outperform on the prospect of President Mauricio Macri’s re-election. He said longer-duration debt will benefit from a Fed cut this month and monetary easing measures by the European Central Bank.
    “The Fed will likely remain accommodative,” he said. “That’s good for EM and century bonds.”
    To contact the reporter on this story: Ben Bartenstein in New York at
    To contact the editors responsible for this story: Julia Leite at, Alec D.B. McCabe, Brendan Walsh
    For more articles like this, please visit us at
    ©2019 Bloomberg L.P.

    Aut inveniam viam aut facium, Nomad

    1. Nomad, buying 100 year stuff now is just crazy. Better to wait for the introduction of Mexico 500 or 1000 year issue. “Very attractive”, “most appealing” lol. You can’t make this stuff up.

    2. I think a lot of investment options are peaking. I’m trimming or eliminating positions, raising cash and waiting. I sold my SCE-L this morning for a total return of 8% including the 6/15 dividend. I owned it for six weeks. That’s a winner winner chicken dinner. Also sold WFC-l at near an all time high. Sitting at 35% cash.

      Also, my apologies to PETA for my chicken dinner reference. Having recently asked the Caldwell Idaho Mayor to change the name of a local road (Chicken Dinner Road) and getting laughed out of town, I’m sure my comment is unacceptable.

      1. Retired, I read about your Chicken Dinner Road debacle. Hilarious. Picking Caldwell wasn’t the best location for that fight. Bon appetit.

        1. P, It’s another entry into your “you Can’t Make This Stuff Up” file. PETA: “asking…to change this road’s name to one that celebrates chickens as individuals”. not a typo. lol

    3. Nomad – if investors are concerned about Argentina’s 100 year bond defaulting, they can always purchase 100 year bonds from Austria where the credit quality is much higher.
      In Europe, bond investors must go to great lengths to earn a positive yield on a top-grade security—even 100 years. Austria this week tapped into that desire, or desperation, by selling a second tranche of its “century bonds,” originally issued almost two years ago with 2.10% coupon at par. This time, an additional 1.25 billion euros ($1.42 billion) of the bonds were offered, at a price of 154.047, for a yield of 1.171% at maturity in September 2117.

      1. kaptain, thank you so much for your reply and excellent insight. I follow many of the European governments bond issuance and am just amazed that anyone would buy a negative yielding bond (to guarantee themselves a loss if they hold it) or trust these politician with their money for a 100 year bond. The BETA (volatility) must be insane. I bought the 7.55% Disney 100 year bonds many years ago; I worked as a Money Manager for Morgan Stanley then and we were one of the underwriters of the bond. EVERYONE said I was crazy (even my brokerage office manager at the time), but I figured the 7.55% would be good with me and Disney wasn’t going anywhere. Sadly, the bond was called years ago.
        I’m in Puerto Rico on business today and am just amazed at their booming economy, everywhere you go there is construction (homes, condos, roads, strip centers etc) and the people are beyond friendly…
        Be well my friend, Nomad

  11. Any reaction to the piece this morning in the WSJ on the dangers of some REITs borrowing in the commercial paper market?

  12. For someone looking at perpetual issues essentially uncallable (a busted convertible) BBB- credit and plus 6%, one may consider looking at LXP-C. The price dances quite a bit.
    I got some today at $53.40 and somehow snagged 88 at $53.15 this morning.
    The 75 cent divi cranks out end of this month. Am keeping this a modest position.
    Moodys considers this company to have a conservative balance sheet and improving debt to EBITA ratio. They have basically transformed themselves from an office reit to an industrial reit which improves their credit risk profile. They are now over 70% industrial reit and plan is to move further north in that regards as they recycle buildings.
    One needs to study more than my thumbnail profile of course…$50 par 6.50% par yield. Current bid 53.18 and ask $53.40. Never hit market order on this issue if you become interested and decide it fits your goals.
    On a lighter more uninvestable note. I finally again snagged some (only 83 shares) UEPCO my local ute at $108. Sold a few hundred at $110 regretted it and it took me all this time to get some back. Some twerp would always jump me. Goes exD next week so its essentially bought under $107 with a $110 call price that will most likely never be redeemed I assume.

    1. Correction, LXP-C has a quarterly divi of 81.25 cents not 75 cents that I mindlessly posted….As I mentioned it swings a lot and ask jumps so ne careful. I noticed the ask has jumped 50 cents since I posted so watch out for price gaming. I have recently seen swings of over a dollar in just a few hundred shares trading in one day so be mindful of that if interested.

      1. Grid, Amazing that you find and share such useful info … so thank you! I was able to find in Moody’s affirmation, released May 2016, that LXP pfd is rated Baa3 as you stated.
        Thanks again,
        No. 12

        1. Aarod, except for one slight error, that you already know occurred….Moodys would never assign BBB- to anything since that is S&P’s rating system, lol. I just cant help myself as I prefer the BBB lettering system over the Baa one for some reason. I just automatically tend to convert it without thinking.

    1. Looking at their balance sheet, Scorpio Bulkers only had about $51 million in cash at the end of Q1…that’s not enough to cover the redemption. They might be planning another note or preferred offering to cover this.

      1. Buongiorno Citadel West, questa notizia di aprile può essere importante?

        Apr. 16, 2019 6:55 AM ET|About: Scorpio Bulkers Inc. (SALT)|By: Clark Schultz, SA News Editor
        Scorpio Bulkers (NYSE:SALT) agrees to sell and leaseback six Ultramax vessels to AVIC International Leasing Co.
        The transactions are estimated to take place in Q2.
        Scorpio’s liquidity is expected to increase by up to $62.4M in aggregate following the deals, comprising up to $52.6M upon closing after the repayment of outstanding debt and an additional tranche of up to $9.8M for installation of exhaust gas cleaning systems on the six vessels.
        As part of the agreements, the company will bareboat charter-in the vessels for a period of eight years.

        1. Ciao Fabrib…you’re right, it looks as if Scorpio is raising money through the sale/leaseback of their vessels. They’re also ‘upsizing’ existing credit lines to finance the installation of scubbers to comply with new IMO environmental regulations. No mention of new preferred or note offerings in any recent presentations either.

  13. I was curious if anyone else kicked the tires on NYCB-U. I decided to buy enough at 47.81 yesterday to get a total of 440 shares overall. Weird how these things trade. I noticed from getting back from my Wynn pool time it jumped 30 cents today. Must have been a seller strike as volume has been plenty recently with little price movement.

    1. I was looking at it this past week as your comments below got my attention

      The description of the security just sounds convoluted

      If I get enough capital and there is not anything else better around this may be a future investment

      the financials look flat but a steady as she goes investments are what I am looking for

    2. Gridbird re: NYCB-U
      It appears to me that no matter how complex the warrants may be, they can be disregarded, especially since the conversion price is far higher that the common share price. In other words, just buy as if the preferred sat alone. Am I making it too simple. as it looks like a good value in the current yield environment. I have no holdings.
      Take care,

      1. Howard, you are exactly right from my research…Bottom line is NYB can convert into common if stock reaches 25% (or 20% cant remember without checking) above ~$20 price. And even then one would come out ahead at todays price. So I am not worried at my purchase. I think its a great buy inside taxable account and its credit quality is very strong.

        1. It is 125%, or 25% above the conversion price. The IPO is so long that it should be a college course.

          1. Howard, passing a college course on this IPO alone should automatically reward you with a law degree, lol… Now the prospectus is a bit dated and changes were made. The conversion strike price now is 2.493 shares at $20.04 (25% above that price). A lot of this now is not Tier 1 cap due to regulation changes.

        2. Hi Grid,

          Much of the dialogue on this issue is over my head but I’m curious as to why you would prefer to buy this non-QDI issue in a taxable account versus an IRA/Roth?

          Please forgive me if I’ve missed the reasoning in the posted dialogue!

          1. Amy, dang it, you need to proof read my posts before I submit as you catch my mistakes. A little word called “non” was in my brain but not on my finger tips in front of taxable….Yes, it should very much be in “non taxable” due to the discounted at issuance note/combined with warrants. I cant say with certainty not dealing with such issue in a taxable but there appears to be coded the possibility of more taxing going on than the actual perceived amount the way the IPO suggests. I cant say with certainty but it appears a strong likely hood anyways. I would not have a non QDI in a taxable anyways due to my tax bracket.
            But having it in non taxable account eliminates the problem. I remember some people owning KTH in a taxable and got hit with some phantom taxes due to the difference of purchase price of the subordinate note held in trust and the maturity price not being equivalent. This would be following same pattern as the note held in trust was discounted to the actual redemption price. Keep in mimd this is just a hacks interpretation and not a tax accountant speaking….The ol better safe than sorry approach here with it.

            1. Also one should keep in mind anytime one owns a subordinated note with a deferral clause and it is implemented, one would continue paying taxes on the income that is NOT being received. It all would get corrected once payment resumes, but its still a bum deal. If company would then go bankrupt one can file to reclaim the income tax paid, but not received. But who knows how long that would be. Non taxable accounts avoid that tax issue.

            2. Thanks, Grid. I’m happy to hear that it was just a typo/omission….. rather than, once again, me being clueless.

              As I stated before, I’m surprised that the learning curve has been as steep as it is for the preferred/baby bond market. It seems like every time I think I have a grasp on something, I find out I’m wrong.

              1. Amy, You sound like me this time last year – but as you had EBGEF and (was it) CDUTF tickers assigned – I’m sure everyone would agree you automatically get an honorary degree. (clapping sound) I do not think that learning curve ends…the slope may drop….but it never ends. Grid, Nomad, Bob-in-De and Tim taught me 50% of what I (should) know about pfds, but that still leaves 50%. lol.

                1. Alpha, it was EBGEF and CNUTF (Series DD) and guilt alone would keep me from ever selling since Amy went out of her way to get the tickers trading for me. 🙂 Im kind of disappointed the DD series went up in price after I bought because I was looking to buy even more. Will just have to sit on my 1200 shares until yield pushes near 5.5% again to buy more which may not be for awhile.

                  1. Ah yes….it was CNUTF…..not CDUTF. So many tickers… few memory cells left.

                    Grid – you have my permission to sell at anytime. :>) I owe you big time for all of the help you have given me!

                    1. Amy, I can never sell..2WhiteRoses would publicly eviscerate me if I sold EBGEF (especially to buy EBBNF, lol) and I am personally a big fan of Canadian Utilities financial stability despite its ultimate goofy ownership structure. So long term I am more likely to own more CU than less down the road. So both issues are long term core holds for me.

                2. Thanks, A8, it’s nice to still get brownie points for EBGEF in CDUTF. I may not be all that smart but I am tenacious!

                  There are times when I’d like to trade my ability to spay and neuter a cat for the ability to read a financial statement but, since I don’t see that happening, I’ll continue to rely on you smart guys for investment ideas.

  14. I’m going to pass on these for now….
    In Europe, bond investors must go to great lengths to earn a positive yield on a top-grade security — even 100 years. Austria this week tapped into that desire, or desperation, by selling a second tranche of its “century bonds,” originally issued almost two years ago with 2.10% coupon at par. This time, an additional 1.25 billion euros of the bonds were offered, at a price of 154.047, for a yield of 1.171% at maturity in September 2117.

    Somewhat amazingly, that tiny yield looks like a bargain, compared with the EUR3.25 billion of five-year notes Austria also issued, at a yield of minus 0.435%, which still was 0.208 of a percentage point above the yield on neighboring Germany’s benchmark note.

    1. Century bonds?
      “Long run is a misleading guide to current affairs. In the long run we are all dead.” –John Maynard Keynes

  15. Playing horrible despite an eagle. Mind drifting so I bought some NYCB-U. BBB- rated trust preferred debt from perpetually mediocre NYCB. About 6.3% and 47 cents goes exD end of July. Not much available over 6% below par and BBB- (Moodys) rated.

    1. NYCB-U might be too complicated for my little pea brain Grid. Care to explain the BONUS when you get off the course.

      1. Mikeo, I said I bought the issue, I NEVER said I totally understood it, lol…In a rough framed outline 6% debentures (subordinated debt) was put in a trust wrapper along with warrants to buy the common. This is where the Bonus stuff comes an (and the intimate details are beyond me).
        But the bottom line was this was issued in 2002 when the common stock was $30. So the whole package was devised as an assumption that the stock price was trigger the call warrants. Well, 17 years later with too high dividends paid out over the years reducing capital to grow, spending years trying to hide from Dodd/Frank Act and stay under $50 billion, and equity dilution this stock is not going to see $35 for me to worry about any of those BONUS provisions. And I wont be alive in 2051. Too be honest this traded well during 2016 rate collapse and it is a small play on that idea.
        It just simply pays that 75 cent quarterly dividend since inception. I was always timid about the issue not ever researching where this sits in the capital stack. Well after researching a while back, it does sit above their baby bond issue NYCB-A issued in 2017 (issued oddly enough to buy back common stock because the payment of NYCB-A was cheaper than paying dividends on the common stock they bought). It is Ba1 (Moodys, S&P doesnt think nearly as highly though of this Bank and the 6.375% F/F which is presently at 25.58). Why it does I have no idea, as I have to trust Moodys on this as they know more about the issue and company finances than I would.
        Kind of a muddle along outfit. They never did differ the trust issue payment during 2008-09 crisis. Only bought a couple hundred shares.
        NYCB is a cult stock on SA like CBL and Frontier except they make money. People think this thing is going to magically pop and it never does. And if recent history is any indication it never will.

        1. HI Grid:
          Please excuse my micro pea brain but just to be clear, is there OID “taxable income” on the preferred [($50.00/sh-$33.18/sh original issue price)/49 years = $0.343/share/year]???. Please note 424(B)(5) filed 10-30-2002, P S9, under “Material United States
          Federal Income Tax Consequences…….”
          Callable anytime but get the impression that it might be more rigorous, i.e. difficult, than a normal preferred for the bank to refinance with a Baa3/BB- credit rating, tier 1 capital considerations, etc.
          Thanks for your post on this one.

            1. Mrinprophet, you are correct. This is a debt issue so its treated as an interest payment and thus is not QDI.

          1. Dave, you brought up a good point concerning taxation…This appears to be a same situation some people had in owning KTH outside of tax free account. I own in Roth so its not a concern for me…But…
            The value assigned to the capital security component was $182.6 million. The $92.4 million difference between the assigned value and the stated liquidation amount of the capital securities was treated as an original issue discount, and is being amortized to interest expense over the 49- year life of the capital securities on a level-yield basis. At December 31, 2018, this discount totaled $66.1 million.
            But for me its just a 6% $50 par issue paying 75 cents quarterly of a $47.80 purchase price. The call warrant stuff is basically useless to the company as expressed in filing below due to low common stock price.

            The Bifurcated Option Note Unit SecuritiESSM (“BONUSES units”) included in the preceding table were issued by the Company on November 4, 2002 at a public offering price of $50.00 per share. Each of the 5,500,000 BONUSES units offered consisted of a capital security issued by New York Community Capital Trust V, a trust formed by the Company, and a warrant to purchase 2.4953 shares of the common stock of the Company (for a total of approximately 13.7 million common shares) at an effective exercise price of $20.04 per share. Each capital security has a maturity of 49 years, with a coupon, or distribution rate, of 6.00% on the $50.00 per share liquidation amount. The warrants and capital securities were non-callable for five years from the date of issuance and were not called by the Company when the five-year period passed on November 4, 2007.

          2. Dave
            I know little to nothing about taxes, but there is an opinion about this issue on pg 72 of the IPO. I have no idea if this influences what your comment stated, and maybe you have already read it and taken it into account.

          1. Mikeo, here is a little more meat on the bone to chew on, lol…NYCB tried to take advantage of 2009 crisis and offered a tender for all NYCB-U shares.
            It was then trading at $35, which actually was extremely high for the time as many $25 par preferreds cratered into the $6-$8 range then. They appeared to be offering about $39 or so in common stock for the preferred. The common stock was then trading a bit under $12 at the time. It appears almost half were tendered based on the $145,000, 000 left outstanding presently on their books.
            at an exchange ratio equal to (i) 2.4953 Common Shares plus (ii) a number of Common Shares equal to $10.00 divided by the Weighted Average Price of the Common Shares, for each validly tendered and accepted BONUSESSM unit, on the terms and subject to the conditions described in the Offer to Exchange, dated July 29, 2009 (the “Offer to Exchange”), and in the related Letter of Transmittal, which, as amended or supplemented from time to time, together constitute the Exchange Offer. The Weighted Average Price of the Common Shares will be calculated pursuant to the procedure set forth in the Offer to Exchange. The terms and conditions of the Exchange Offer are set forth in the Offer to Exchange and the accompanying Letter of Transmittal, which are attached hereto as Exhibit (a)(1)(A) and (a)(1)(B), respectively.

  16. NRUC – Bought on the IPO at 25. Just flipped at 26.69. Was intending on this being a long term holding but 6.8% gain in a month was too tempting. Now looking for a replacement.

  17. Sachem Capital 7.125% Baby Bond (SCCB) is now trading. I had an early morning trade execute at $24.65. The last trade was $25.49.

    1. I got 200 shares @ $24.74 at the open. Not a bad early run, seems like almost all with a decent coupon does this these days. Better to be lucky than good I guess. Who knows when this all comes to a sudden stop.

      I figured if Nomad bought, can’t be in too bad of financial shape. I did a little due diligence myself and it looked decent.

    1. I bought a big load of the new issue USB-O when it came to market last August. Inv grade, qualified, 5.5%. Has been trading well over $26, just went ex. No plans to sell this one.

        1. Yes the USB-O is 5.15% coupon and is down (at par) because it went ex-div yesterday. It has been trading over par recently. It is callable, IG and QDI.

    2. I had posted 6-20 on the BAMKL issue the following:
      “As a new person here, i’d like to ask members why the PNC-Q a 5.375% issue is trading at 25.64 (call date was 12-1-17)and the new BAMKL is at 24.95.”
      Well today that issue is trading near 25.30.
      I read some of you posters and i want to Thank You all.
      The Prif-B and NRXPP have me smiling.
      I hope i can contribute something of value to you all

  18. ATHENS, Greece, June 28, 2019 (GLOBE NEWSWIRE) — Tsakos Energy Navigation Ltd. (“TEN” or the “Company”) (NYSE: TNP), a leading diversified crude, product and LNG tanker operator, today announced that it has called for redemption all 2,000,000 of its outstanding 8.00% Series B Cumulative Redeemable Perpetual Preferred Shares (NYSE: TNP-PB) (the “Series B Preferred Shares”). The redemption of the Series B Preferred Shares will occur on July 30, 2019 (the “Redemption Date”). The redemption price will be equal to $25.00 per share.
    All shares of Series B Preferred Shares are held in book-entry form through the Depository Trust Company (“DTC”). The Series B Preferred Shares will be redeemed in accordance with the applicable procedures of DTC. Payment to DTC for the shares of Series B Preferred Shares will be made by Computershare Trust Company, LLC, as redemption agent (the “Redemption Agent”). The address for the Redemption Agent is as follows:

    Computershare Inc.
    150 Royall Street
    Canton, MA 02021

    July 30, 2019 is also the final dividend payment date for the Series B Preferred Shares. The record date for that dividend is July 29, 2019. Payment of the final dividend of $0.50 per Series B Preferred Share will be made on the redemption date of July 30, 2019. The dividend is for the period from the most recent dividend payment date on April 30, 2019 through July 29, 2019. Dividends on the Series B Preferred Shares will cease to accumulate from and after the Redemption Date.

    1. As expected…TNP-C should get a bump from this also.

      Thanks for posting the redemption notice Fabrib!

    2. Thank you for the post Fabrib. They are redeeming TNP-B as they said they would in the last conference call.
      Thank you also for the other timely posts you have previously made on this site.
      – Dave

  19. Am not sure which page to post this note.
    RE: TNP-B July 30 failure to redeem.
    TNP-B coupon goes to 10% if not called by July 30. A 30 day redemption notice is required per prospectus which, since June 30 is a Sunday, June 28 is the last weekday to issue a redemption notice. I did not see a redemption notice in the Taskos website. (1 day left to provide a redemption notice).
    Based on the average yield of TNP -E and TNP-F, TNP-B would be priced at approximately $24.00 per share for a similar yield based on the FTR 10% coupon vs. closing at $25.17 today with a $0.50 dividend at the end of July.
    So I see an approximately 2.8% risk ($24.67/$24.00) if not redeemed on July 30? Am I figuring this right???????

    1. I’m interested to see what the do here as well Dave. I’d be shocked if they didn’t redeem, assuming we hear something tomorrow. They pretty much said they were going to redeem on the last conference call.

  20. Just generic, but I am wondering why this section has no comments for 9 days and counting ?

  21. Didnt see posted, but here is the new Sempra, baby bond prospectus that is trading now (under temp ticker SREA) 2079 maturity, 2024 optional redemption with the standard 10 year deferral clause. A massive $700 million issuance I believed in part used to acquire Oncor.
    Btw, PPX just sagged to 25.36 right before close so I picked up 500. This goes exD 7/26 and pays 7/30. Since it pays 36.8 cents quarterly the 5.9% issue is going to live on near term with a fairly tight anchoring to par I imagine in this rate environment being past call.

  22. I usually use credit card for Quantum. I sent Quantum a check this time along with a note. Don emailed back “these attacks are simply harassment and have no possibility of gaining useful information for the attacker since we simply do not keep any information on the website that would be of any real use to them”.

  23. Apropos of nothing, but a comparison I find interesting.
    Bitcoin open today – $11,831
    Bitcoin a/o 3pm CDST – 13,941

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