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NewtekOne…
Any IIIer’s familiar with this company or its Baby Bonds
(NEWTG, NEWTH, NEWTI)…assuming higher risk with higher 8.0 – 8.625% coupons.
good article(s) on S/A..most recently 1/5 by stephen nemo
I like it.. it’s balance sheet is still more like a BDC..
NEWT started out as a BDC then bought a bank. Not sure if it was a shell co like a SPAC or just a one branch pony. When they converted a lot of people holding the BB thought they would have to call them. Made people upset when they didn’t. As for being a bank now, how many branches have they grown to? I traded in and out of them when they were a BDC and was tempted to get back in before they converted to a bank. I guess people have done well with them.
DLNG-A (9% cum preferred, callable) ex-div tomorrow for 56 cents. Last 25.45. Now I have a little ding-a-ling.
I bot dlng.pra at 25.45 (24.96 stripped) the dlng.pra.vlct pair is trading near fair value.. was two sigma rich on 1/14 and 2 sigma cheap on 9/17 ..good article on S/A dated 1/18 by the “investment doctor”..tks for show
Wouldn’t the stripped price have been 24.8875? (0.5625 div )
this goes back to the difference between exdate and pay date… so why I will get 56 cents I wont get it until 2/12 ..this 7 days is worth 4 cents so i the stripped price is 24.93 (not 96)
Not sure what that has to do with the stripped price since you get the full div.
oh well….
I felt EXACTLY the same way but it was proven to me by independent third parties (quantum.com) to be the case
I just sold dlng/pra at 25.07 which I acquired yesterday at 25.45 picking up about 13 cents ..the reason for my sale is my pairs analysis indicates it trading near fair value ..will look to acquire cheap or possibly look at floater
one thing to be aware investing in MLP preferred
you will get a K-1with it under line “guaranteed payment”
so consider it ; just the added hassle and cost of reporting on your tax return ;
ETpI is below its usual range.
that’s a keeper ;; no maturity date ; no call date – a strange one for sure
It appears to me ET could cause ETpL to convert anytime they want? I have to admit never digging into this. I simply own ET directly.
fc, I don’t have the numbers ready to hand but the conversion is dependent upon share price of the previous company (since this was a carryover from an acquisition) and back when I bought the probability of hitting those numbers was very unlikely. If I can dig them up will post.
NSA-B seller right now offering shares @ legit 7% yield.
theta-
Legit? NSA-B has been trading ~7% for a couple of weeks. What am I missing?
The spreads on NSA-B are typically massive with terrible liquidity.
If you pay anything > $21.20 it’s under 7%. Sure you can place an under bid but that will most likely go all day without getting hit.
My alert was specifically for someone, with cash to deploy immediately, right now, you can go in and smash that ask and lock in 7% without having to place a low bid, etc. and hope for a fill.
Since my initial alert, notice it only took 1100 shares and now that $21.20 seller long gone. Ask is now $21.53; jumping a whopping 33 cents!
I believe the genesis and true spirit of this page is actionable items that can be had right now, in this moment. No offense to anyone but some of the posts here could placed in the Sandbox. For context I’ve been drinking cask strength rum all afternoon so please don’t take umbrage, anyone.
I have a long winded post on bitcoin I am going to compose at some point that I think some folks will find value to. Maybe that will be on a vodka day. Cheers.
No offense taken Theta. But I don’t think comments related to a specific post should be posted elsewhere. One person questioned buying something with low volume, which you even posted was only 1,100 shares and average volume is around 2,500 shares. Anyone with an account at Fidelity might have problems with selling if they want to.
Charles M – I wasn’t referring to a reply to my specific post which was a timely alert to be posted somewhere else. That’s all fair game and logical.
I was just making a more broad observation, meaning a new first post in here for an actionable item that can be traded right now or imminently.
Theta it’s a good point. I notice a lot of posts not related to a specific topic go off in the weeds.
I’m guilty! Just look this comment!
good comment.. do you have link describing what the structure is on these (i.e. perpetual, cumulative, callability, etc)..fido does not
mjtroll – Sure thing. They are cumulative/perpetual.
https://www.sec.gov/Archives/edgar/data/1618563/000162828023032274/september2023-424b7prospec.htm
tks its seems as as if they are not callable until sept 2043?
mjtroll – Yes, correct.
Good Alert on NSA-B. Unfortunately it is a nanny stock on Fido, but it could make a good flip if the 21.20 offer lifts.
No prob doing a 100sh test at 21.16 – what’s the nanny part- don’t see it. Or is it for a sale or larger qty problem?
Exactly Jteader, hotel California ” you can check in but you can’t check out”
I am almost sure I read somewhere the class B stock was created for the insiders to get income and be able to cash out. This is why there hasn’t been a lot of volume on trading. So now if there is a large amount coming to market maybe someone wants to reduce their position.
The one year chart shows a slow decline in the common stock price and so does the 5yr. Chart
Theta, I might want more than a 7% return on my money as an added cushion against capital loss.
Charles M – I’m going to queue up a some Eagles right now. Thanks! I hear you on the chart and being mindful of proper risk compensation.
Keep in mind, just toss 2021/2022 entirely because that was an anomaly. Putting that aside, the trading range on the common going back to say 2017ish is not too terrible.
This company although the smaller entity in the space vs. PSA, CUBE etc. they are in 40 something states. They recently did have a slight downtick in SSR due to slight decline in occupancy. But one indicator I watch closely is FFO and the most recent data is on a year over year basis, it’s still up >50%.
The company also overall has a pretty decent smattering of debt maturities that are strategically spread out so I don’t think you’d have an issue on the cash flow/liquidity side etc.
Lastly they do have the I think a payout ratio at 90% or > totally covered on the common divi. But to your point, absolutely, for any of my perpetual holdings that are not JPM, MET, PRU etc. anything below that class, I am always monitoring and assessing quarterly ER etc. You really have to.
Also appreciate your kind words above. Cheers and a good 2025 to your investment goals.
Sir, I’ll have what your drinking
Just what you posted here is worth the discussion on Tim’s site.
I have held NSA-B off and on since it was first mentioned on this forum last year. I hold it now and find it attractive (at 7%) for tax adv accounts. As others have mentioned, it has protective change of control terms, which could come in handy if they are bought.
Speaking of change of control risk, did anyone notice that cedar just did a meaningful tender for their prefs?! Amazing…
agreed .. I don’t get all the angst about whether it should have been posted on this blog
Issuer / Ticker:
PennyMac Mortgage Investment Trust (“PMT”)
Guarantor:
PennyMac Corp. (”PMC”)
Description:
$25 Par 5NC2 Senior Unsecured Notes
Expected Security Ratings*:
Egan-Jones = BBB+
Format:
SEC Registered
Maturity:
February 15, 2030
Settlement**:
T+5 (February 11, 2025)
Denominations:
$25 and multiples thereof
Announced Size:
$50 million (2 million $25 par notes)
Price Guidance:
9-9.125%
Coupon Structure:
Fixed-for-Life
Payment Dates:
February 15, May 15, August 15 and November 15 of each year, beginning on May 15, 2025
Optional Redemption:
In whole or in part, at any time and from time to time, on or after February 15, 2027, at par
Change of Control:
101%
DRD / QDI Eligible:
No
Use of Proceeds:
To fund PMT’s business and investment activities, which may include: the investment in subordinated bonds from PMT’s private-label securitization activities and other mortgage-related securities and the acquisition of MSRs; funding PMT’s correspondent lending business, including the purchase of Agency-eligible residential mortgage loans; repayment of other indebtedness, which may include the repurchase or repayment of a portion of PMC’s 5.50% exchangeable senior notes due 2026 or secured financing; and for other general business purposes
Joint Bookrunners:
MS (Physical) / GS / RBC / UBS / WFS / KBW / PIPER
Expected Listing:
NYSE
CUSIP:
70931T707
Anyone with PMTU 8.5% matures 9-28 may want to sell its currently @$25.49
qxjm76940–Wish I would have done that yesterday–but no crystal ball here.
No kidding. Where is my crystal ball when I need it.
Thanks- got out at a long term profit & a bit of a profit today.
Thanks EB
given PMT screwing over the holders of PMT-A and PMT-B by declaring that the switch from LIBOR to SOFR means that instead of floating they are now fixed I will never touch a PMT security
PMTV incoming
https://www.sec.gov/Archives/edgar/data/1464423/000119312525019693/d918872d424b5.htm
9-9.125 No mention of redemption with use of proceeds except for 5.50 notes due in ’26.
As of January 31, 2025, PMC had $345 million aggregate principal amount of the 2026 notes outstanding. The 2026 notes bear interest at an annual rate of 5.50% and mature on March 15, 2026.
Thanks J
Lately, it feels like every post has turned into sandbox material with speculative comments like “The president is going to do this” or “Mexico will respond by doing that. Last night on the squawk box, I heard…” How do these random squirrel speculations relate to trading alerts?
If I wanted to read opinions from talking heads, I already know where to go for that. Can we keep this thread focused and relevant to trading alerts.? Ex. Things people are buying or selling, new investments, called investments, etc. Other random thoughts should be dumped to sandbox.
Mr Conservative,
You are correct. Function of me posting in the wrong place
amen..but don’t hold your breath
Bank Bond Monthly Payers Today…
* BAC ~ 06055JHR3, 5.5%, 96.91, Senior, A1/A-, Monthly, YTC 5.761% 12/16/27, YTM 5.761% 12/16/44.
* GS ~ 38141EX79, 5.85%, 102.33, Senior, A2/BBB+, Monthly, Non-Callable, YTM 5.631% 6/15/41
I feel like we are replaying the movie Canadian Bacon:
https://en.wikipedia.org/wiki/Canadian_Bacon
Bloomberg: Mexico’s Sheinbaum Says Tariffs Delayed For One Month
All good now?
Oil down a bit, the 3mo rate is higher than the 2yr….
So far, delay is only for Mexico.
Mexico has agreed to put 10,000 troops on the border and there are meetings set up to make a longer term deal with Rubio heading our delegation.
I am not sure Canada even has anyone in charge who can make a deal right now with the parliament prorogued while they try to replace the PM. No one seems to be running the show up there so we might see more uncertainty for a while longer on that front.
I would have thought the pipeline companies would be good to watch for opportunities but oil seems like it will get an exemption so I am just sitting tight. So far, all of my accounts are up today and I don’t see any actionable items. That could certainly change though.
Last night on the news they said oil from Canada would have ‘only’ a 10% tariff – pretty good sized impact on gas prices here. Hope not.
Also, yesterday, POTUS says he now is in agreement with Powell on holding rates steady rather than demanding a raise. Maybe that will help the fidgety mkt.
POTUS cannot influence the decision as far as I understand, right?
and the US has “agreed” to restrict the flow of weapons to Mexico
Moved this information from Sandbox to Reader Alert. A new offering from Berkshire Hathway (subsidiary Berkshire Hathaway Energy). Utility Company Nevada Power 6.25% coupon rated BBB/BAA2 from SP and Moodys. $100 issue. Baby bond. Trades by cusip only. Purchased by calling the Schwab bond desk on Friday.
FWP:
https://www.streetinsider.com/dr/news.php?id=24273917&gfv=1
Prospectus:
https://www.sec.gov/Archives/edgar/data/71180/000110465925007427/tm254537-1_424b5.htm
Thanks to 2whiteroses for finding the prospectus. Team effort
This is a 5 year fixed rate reset. The initial coupon for the 1st 5 years is 6.25%, then it resets to 5 YR CMT + 1.936%
Thanks, Steve.
Nevada Power, or NV Energy I believe is legally mandated to move to 50% solar. I recall a vote on this .
https://www.utilitydive.com/news/nevada-passes-bill-for-50-renewables-by-2030-100-carbon-free-by-2050/553138/
5yr treasury constant maturity (better known as the “weekly average yield on 5 yr treasury securities adjusted to a constant maturity of 5 years” ) plus under 2% is not attractive to me.
I used to service an extremely large portfolio of adjustable mortgages with over 70 different types of indices . I looked up exactly how the CMT is determined…and it was decades ago I did this, but they take closing market bid prices of 5 yr treasuries no matter when they mature and adjust to a constant maturity. I never investigated how that’s done. Too busy fixing improperly adjusted mortgages. I was part of the group blowing the whistle on mortgagees back offices not understanding how to properly adjust millions of mortgages. That was a function of very uneducated employees.
It’s way off-topic but you might find it interesting that an employee in charge of billions in adjustables was question on how she decided WHICH day’s rate was used for adjusting . It was supposed to be based on “the most recently available index,.” She decided years earlier that “most recently available” meant the day she received the paper H15 release in the mail
Lt, I rode a 30yr adjustable all the way down and paid it off. Was when they first came out. San Francisco federal savings and loan. Based off North Coast district cost of funds. Could only be adjusted once a yr and no more that a 1/2% up and max was like 10% When SFD were bought out the merging bank sold the loan. Seemed like my loan was always packaged with the first batch of loans to be sold. Lost track of how many mortgage servicing companies I was moved to. The last one was a sub of New Rez. Every statement I got said my interest rate was changing but the amount to pay interest and principal never changed until the anniversary date. 98% of the time my loan went down until I was paying like 3-1/8% at the end.
I look back on it as the good ole days. I don’t think we will see rates as kow as that again.
Charles
More ancient history….
Bought our first house in 1981 – 16.5% 30 yr mortgage
Refinanced 7 times.
Last was in 1997 @ 5 1/4%
Interesting factoid to anyone thinking about buying a house today:
Bought for $180, sold for $620.
During the 16 years we owned the house, we put $100 of additions into it.
Our mortgage payment in 1981 on 16.5% on $180 purchase
“Roughly” equalled
Buyer’s 1998 5.25% on $620 sale price
after cost of improvements factored in…
What happens to today’s house values if/when interest rates go the other way?
SHEINBAUM SAYS “GOOD” CALL WITH US’ TRUMP LED TO SOME ACCORDS, MEXICAN PRESIDENT SHEINBAUM SAYS TARIFFS ARE PAUSED FOR A MONTH FROM NOW. (BBG)
So, after a fashion, Berkshire Hathaway (Energy) does pay divs – they’ve owned NVE since 2013… ha!
Monday Post-Tariff Futures at 4am EST. Let’s see where Mr. Market finishes today!
Dow ~ (-554)
Nasq ~ (-395)
Did anyone receive a notice for SBBA full redemption? Fido sent me a notice for a 3/3/2025 call date. About 4 months before the 6/30/2025 maturity date.
In the past I’ve had a couple erroneous notices (e.g., ETI-, the Entergy Texas 5.375% preferred), so I like to get corroboration. I checked for SEC filings and for announcements on the company website, Seeking Alpha, and yahoo finance. So far, no corroboration, so I’m not certain of it happening.
It could be valid – STNG recently issued bonds in the Nordic market, and refinancing SBBA was the main planned use of the proceeds. Still, I figured it would be for when it matures, not for calling it 4 months sooner.
https://www.scorpiotankers.com/scorpio-tankers-inc-announces-successful-placement-of-5-year-senior-unsecured-bonds/
Gumfighter, now I see your post. Hopefully we’ll get corroboration from a source besides Fidelity.
In reading through the prospectus, it appears they are only required to give 30 – 60 days notice of redemption.
Schwab has not sent notice of redemption, although their research page shows 3/2/25 as the next call date, but that’s just their standard boilerplate.
If redeemed on March 3rd, did I calculate correctly that full redemption amount will be $25.29 ish?
The conspiratorial side of me wonders if there is any “odd” trading that happens with these securities that Fidelity erroneously flags for redemption – buy / sell imbalances caused by holders liquidating prematurely.
On the other hand, Fidelity was “Johnny on the spot” with the recent TRINL redemption, sending me notice that day AFTER funds were deposited from the redemption that the security was going to be redeemed…….. ugh.
Oh, I just see now that Schwab has as the security description
SCORPIO TANKERS IN 7%PFD**CALLED** @PAR EFF: 03/03/2025
The caveat on 30-60 day notices of call is that although most everyone does the investing community the courtesy of making the announcement publicly, officially I think the requirement only means they have to notify DTC or the equivalent to satisfy the requirement… We’ve seen it before where what you get from Fido or someone else is accurate even if not corroborated by similar info being provided by other brokers…
Everyone, SBBA’s IR replied to me:
Michael,
Yes that’s correct we will redeem the notes.
Best Regards,
______________________________________
James Doyle, CFA
Scorpio
1 Lafayette Pl Greenwich, CT 06830
Dir: +1 203 900 0538 | Mob: +1 203 520 3457
Email: jdoyle@scorpiogroup.net
Mark,
I also calculate 25.29ish. I get 25.30625
63 days accruing (12/30/24 through 3/2/25)
– Final interest payment began accruing 12/30/24 (pay date of prior payment). Accrues through 3/2/25 (day before redemption date).
63 days /90 days (as per prospectus) = 0.7
$0.4375 full amount X 0.7 = $0.30625
prospectus (p. S-50): “Interest on the Notes will be computed on the basis of a 360-day year composed of twelve 30-day months.”
Yes, I also got a notice from Vanguard for a full redemption of SBBA on 3/3/2025.
There was a time I stopped accumulating because they strongly implied on a conference all or two back that they were going to call these early with all the extra cash flows they had coming in but then they didn’t do it. That seemed to be because the shipping market had turned and so they waited for the new financing to be in place that is referenced above. I figured at this point they were going to wait for maturity, but it makes sense for them to call this to save some money. (https://www.scorpiotankers.com/scorpio-tankers-inc-announces-successful-placement-of-5-year-senior-unsecured-bonds/) The net proceeds from the bond issue shall be used to refinance the Company’s existing USD 70.6m senior unsecured notes and for general corporate purposes. I wonder when the new ex date will be.
This the new bond? CUSIP Y754QCAA8
i queried Henrik Alex on S/A who covers IMPP about this and he said that to the best of his knowledge it was not called
SBBA (7% note) full call on March 3, 2025 vs. maturity date of June 30, 2025 per notice from Fidelity.
I own SBBA in my fidelity account and did not see the notice..how did you receive it?
I did not get call notice either on SBBA. Perhaps because it was a recent buy.
mj,
I got an email alert to go to the “Account Records” page, where the notice was posted as a PDF.
On the home page, open up the drop-down menu under “Documents”.
On my home page, “Documents” is one of the headings in the top row, which has these headings: Summary; Positions; Activity & Orders; Balances; Documents; Planning; and More.
In the Documents page, open the drop-down menu under “Other Documents” and select “Account Records”.
tks for detailed explanation..I checked and nothing there…probably because I bot it friday
sure, mj.
Yes – I think that’s why. I bot on Friday but my notice was only for the shares bot before Friday. As we get nearer to March 3, I expect we’ll get a revised notice, and it will show the shares we bot Friday.
NEWTZ – there was a motivated seller throughout most of today and a closing dump down to 25.41 on 10x average volume. NEWTZ matures 2/1/26 and is one of my largest holdings . As of 9/30/24 NEWT had equity of 282M on assets of 1.674M. I’m guessing equity is now over 300M due to the earnings estimate of .66 per share for Q4. At today’s closing price of 24.41 the YTM is 8.05%. Its strange that the safest NEWT issue got dumped today while the longer dated issues I track were up a bit.
another one affected by EOM for PFF I suspect..
B. Riley Financial has briefed its staff on a tentative plan to spin off its securities business into a separate company. (Bloomberg)
any idea what that would do to the preferreds and/or baby bonds? any details? (i couldn’t access the Bloomberg article about it)
good comment.. newtg/sjnk pair went from 2 sigma rich on 12/31 to 1 sigma cheap today going back to inception on 6/3 …newtg 8.5 6/02/29
Microstrategy preferred — flat
https://www.otcmarkets.com/stock/MSTEV/overview
Its conversion clause looks very bad. This one could get dumped soon after listing
Massive dump going on with some of the preferreds. Some are down 2-5%. EOM nonsense.
EoM or the long-term interest rates taking off due to the admin’s imposition of duties on Mexico, Canada, and China?
Sorry Costas. I just can’t believe a 3 basis point move upward in yields would cause preferreds to go off 2-5%. I’m sticking with EOM nonsense. But, of course, stay tuned.
You have a valid point @Rocky_Mountain_Hiker. On Monday we will know better. What I saw was a 5bps rise in the 10Y and a 1.2% reversal in the S&P (6116 -> 6040) around 13:00 when it became apparent that tariffs would be applied.
it’s PFF rebalancing and selling some of its holding to raise cash for buying new issues. On the months that there are multiple large issuance there is usually some selling of existing pfds at the EOM.
EIX
https://download.edison.com/406/files/202501/20250127-eaton-fire-update.pdf
fc, thanks so much for posting that information!!!
Thanks fc. interesting they mention an encampment 300 yards from the site. Even though 220K lines there have been issues like in Oakland of the homeless wiring into street lights and other sources. Of course SCE would still be responsible as they didn’t patrol the lines for illegal access.
Well, Charles, if the homeless were trying to wire into a 220Kv transmission line, there might have been a fire, but there would almost certainly been some dead people.
Back when I was at a mfg plant in the south bay, we had an idiot break into our plant substation yard (4M fence, razor wire on top, etc.) served by a 115Kv line, apparently to steal copper. He apparently touched the wrong things and there wasn’t much left of him but some ash and crispy bits. Our guys didn’t even discover him for several days.
One for the Darwin awards.
fc
I like to hear what the Eaton Fire plaintiff’s lawyers are saying to get a balanced perspective:
January 25, 2025 – Source of Eaton Fire Keeps Coming Back to Edison
A video has surfaced suggesting the Eaton fire, which killed 17 people and destroyed over 9,000 structures, may have been ignited by a Southern California Edison transmission tower. The footage appears to shows blue and white flashes of light, suspected to be electrical arcing, near the tower just before flames erupted on January 7.
Residents near the tower claim to have witnessed large flames at the site, supporting the theory that Edison’s equipment sparked the fire. Edison officials, however, maintain that initial inspections showed no signs of arcing or anomalies and emphasized the need for a full investigation before drawing conclusions. The company confirmed sharing the video with investigators and continues to dispute claims that their equipment caused the fire.
For the full report:
https://www.lawsuit-information-center.com/la-wildfires-lawsuit.html
Another thank you to fc/Steve for sharing the Edison/Lawsuit report updates. It seems
inevitable that Edison will have some material judgement or settlement amount to deal with – at least sharing overall liability for wildfires damages with other entities.
I bought small positions in some of the SCE preferred’s last month. Looking ahead, I am wondering whether anyone here believes their pricing will follow the unhappy example of PCG preferred’s. A long period of depressed values and suspended dividends. TIA
Steve,
IMHO, the site you reference is just a site for plaintiff’s lawyers to troll for clients. it is not really a “balance” for anything. They don’t actually know anything. They just post rumors. They are trying to round up potential clients so they can potentially collect a huge cut of any payment.
There is a lot of gamesmanship among lawyers to try to get people signed up early on the chance that there is an opportunity to try to move a case forward as various firms jostle to get class status for potential plaintiffs.
Edison may ultimately have some liability if they caused the fire, but until the investigations are over, all the plaintiff’s bar can do is howl, file frivolous suits (based on no facts) and try to sign up potential clients. we saw this in the fires in northern California (over the last 10 years), and now we are seeing in down south.
Lots of unethical attorneys out there, and they come out of the woodwork every time there is any kind of disaster (not that all attorneys are unethical, but the bad ones swarm like cockroaches whenever there is a disaster).
Private, I agree with you 100%. However the lawyers do have the ability to cause swings in the price of Edison stock and their preferreds.
The worst day of my working career was being deposed by plaintiff’s attorney in the largest wage and hour lawsuit in America. No love lost here.
Also agree with Private’s appraisal and your comment. Given our present court/legal system and the huge loss and suffering in this disaster, the deck is already somewhat stacked, in my opinion.
Reading today’s comments on SCE preferred’s reminds me that the legal slog is predicted to last years. So in the interim, some of the issues purchased last month at the right prices may be worth hanging on to. I’ll keep an eye on them.
MSTR preferred stock got massively upsized to over half of a billion.
It actually priced higher than I thought. I was thinking 75% of par.
Yield is going to land around 10%.
where can I see this
https://archive.ph/lmDjj
Some things to keep in mind on STRK: Since MSTR does not have any earnings any dividends will be treated as return of capital, also highly likely those dividends will be paid in MSTR stock not cash, conversion premium is massive so STRK will trade as very low quality fixed income. A Ponzi on top of a Ponzi.
Chris W,
At this point I should say, ” You really don’t understand Bitcoin! May I send you some youtube videos that will explain it to you?”
My BTC friends in Portugal believe the higher bitcoin goes, the more they are correct about it taking over for all fiat.
Maybe , but at least you can drive a Fiat.
Perhaps someone with crypto acquires the brand and renames it the Bitcoin
Well the skeptical me says they need enough $$ to pay the first year’s dividend!!
Walgreens has no green, suspends dividend on common…
trump to initiate 20% tariffs on MEX and Canada Saturday. This news caused a big move in the peso as it came out and led to very large buy imbalances and big buy imbalances on the close in a variety of energy stocks. MPLX, WES, PAA inter-alia.
I might get a chance for a shopping trip to Canada!
Lt, small after market drops. I guess traders are taking profits. See what tomorrow brings. MDST I wasn’t able to buy at Fido but I hold at SCHWAB and it showed a big after market jump.
Charles, the correct trade was something I rarely do anymore, which is buy the stocks into the imblance and sell them market-on-close. The problem is figuring which of these gets offset by sell orders. I’d call a friend and ask what he did, but he has a key on his keyboard that sends orders to a floor broker. I never had one of those. He usually wait until the last 30 seconds to buy then hits the sell key to a floor broker. Unlike you and I with retail accounts he can actually increase the imbalance with his orders.
Whenever someone asks him what he does for a living he stops the questioning by saying, “I’m a day trader” in a manner that sounds like he’s a loser, as most people have an image of day-trading that says “loser”.
There are services which put out imbalance information well before you’d see it on the DJ news . Most traders think this info comes out at a specific time but there’s an early look imbalance on the NYSE securities available 1 hour before the close.
My point here was others have far superior access than we do with retail accounts.
In large measure, these people are not smarter, they merely have better access and info and take advantage of retail traffic. If you trade millions of shares per month, for example, you are not getting free trades but who cares as long as you have better access. That’s WHY you’re trading so much.
At one point in time I was quoted unlimited trading for $12,500 per month, but I had largely retired so i begged off. It did make me thing about the fact that in the late 90’s I used to pay 1 c per share and ran up a $150,000 monthly bill. I’m just goofing around nowadays. Every time I think about going back to that I think, “WHY? i don’t need the money or the risk”
I always thought of better info is things like a bloomberg terminal which has contracts with the companies that distribute information from the actual corporations who report. Those reporting corps don’t even bother use their website in real time as they give the information to someone who can sell early access. I am not totally sure how it works but I have learned information is not always free unless you don’t mind getting it late. This can also include things like news feeds from AP and whatever else you can imagine. I always found it slightly crooked. Like why cannot I find the official website where Apple places it’s results for all to see? Why do I always have to get it from a 4th or 5th partner? Why do all these powerful computer systems ran by financial companies/funds/etc… who analyze reports in seconds always seem to have it within seconds upon public release.. yet I sit and wait.
FC, I’d argue some of it violates reg fd.
I don’t have a BBG terminal, but I can access one by calling a friend who has offered to give me full access but I don’t know how to use most of the functionality and don’t want to pay 2500 / month. (that’s what it was 5 years ago or more when I priced it.
Better info/better access. I don’t know your trading volume , but there are quite a few proprietary trading firms around and clearing firms if you don’t need access to capital, that can give you professional access.
Saturday is a long way off for tRump. He has plenty of time to back track as he does very often. If the tariffs fail to pump the economy, they’re is always Sleepy Joe for him to blame it on. Donnie proudly blamed Joe for the planes colliding at Reagan airport. I didn’t know Joe had a pilot’s license.
MJ, your blatantly political comment has no place here.
Please keep the political crap off of here!
Tim
Isn’t there some way we can intercept/stop/exclude political comments like this?
They completely destroy the collegiality of this site.
Collegiality: “in a way that involves or shows friendly and helpful relationships between colleagues”
Terrific word selection..! Happy Friday all!
Thanks Q , Happy end of the month everyone! Let’s see how the dividends and interest roll in for Feb.
If I posted something political and I got this reaction from you guys I would be very sheepish to do it again. Seems users do a good job and Tim can sit back and relax.
I spoke too soon… sigh
The Biden administration put a guy in charge of FAA who couldn’t answer basic questions about aviation safety. I guess that was what Donnie was talking about.
So far the Cd loonie has appreciated about a cent against the dollar, ( but reversing a bit today) so no harm for now– Monday might be interesting.
lt…. I believe it is 25% on Mexico and Canada, 10% on China. The White House released a statement today that they are still on track for imposing the tariffs 2/1/25. The only thing guaranteed is more chaos…… As the Guns and Roses song went “Welcome To The Jungle”.
Does anyone know anything at all about the financials of Tectonic? Do they even have a credit rating?
You can visit their website and view their quarterly reports/annual reports.
I noticed an article Barron’s that MicroStrategy is issuing a convertible preferred that is expected to yield 8%ish. Is anyone considering this? I usually prefer issuers that have operating cash flows. It soulds like they just own Bitcoin for appreciation’s sake.
https://www.barrons.com/articles/microstrategy-bitcoin-convertible-preferred-stock-strk-11ed2d9a?st=c918HV&reflink=desktopwebshare_permalink
“The first Bitcoin-related convertible security readily available to individual investors should begin trading on Friday.
MicroStrategy [MSTR +2.22%] plans to price $250 million of new 8% convertible preferred stock late Thursday. It is expected to begin trading on the Nasdaq Stock Market under the ticker STRK on Friday.
The deal, consisting of 2.5 million shares, is likely to be priced at around $100 per share.
Barron’s wrote favorably on the deal Tuesday, given that its yield is some two percentage points better than the less than 6% available on preferreds from major banks. …”
MSTR’s value is tied to the price of bitcoin. Id rather just own the bitcoin. an 8% coupon doesnt seem to me to be nearly enough.
This is very interesting. If what I’m reading is accurate, the conversion strike is equivalent to $1,000 trading price for underlying MSTR. So these preferreds won’t be going anywhere anytime soon.
This is the complete opposite strategy he was utilizing with the convertible debt offerings with super low strikes, essentially he would never have to pay those bonds back in cash as the bond holders made 3-4X time their money based on where MSTR is trading i.e. $300 or $400. There was a recent $1B float that just got taken out and the strike on those bonds was $145 vs. current trading price @ $350s.
Imagine buying a bond @ par for $1000 and getting paid back $3000 instead. Then you wonder why these bonds were in such high demand not to mention the arb/hedge you can put on them vs. the strikes with respect to derivatives completely removing any risk and/or locking in a spread gain as well.
I can’t multiply. I was thinking it was 2.5 bill
lol. I was actually surprised the offering is only $250mm. This issue is getting some good reception and institutions are going to be jumping on this. Really curious to see what price this opens up for.
Heard some chatter that at Stifel account need 10 mil in house assets to participate in MSTR syndicate offering fwiw.
Thanks Jerrymac—I don’t have anywhere near that much–wouldn’t matter if I did I guess.
The 8% is payable in MSTR stock or cash…their choice.
Am I the only one bothered by the fact Saylor got in trouble for accounting shenanigans in the past?
No explanation he has ever given about putting a company’s reserves in BTC makes any sense.
I had a standing order to sell UZD at 24.70. It executed exactly at the open. Yesterday’s close was 23.80. No trades today on ToS. Couldn’t find news. The sale to TMUS is pending. USM is trading today.
You got a lucky fill. Etrade is saying 23.77 was the high of the day. You may have had a fill in pre-market if your standing order included outside of RTH.
No pre-market, but 24.70 (odd lot) is a lot like 23.70.
rocks,
I see it in my Time & Sales screen.
First 3 trades today:
09:30:00. 1 share at 23.80
09:30:01. 25 shares at 24.70
10:19:57 1 share at 23.67
10:20:58 19 shares at 23.72
mbg-
What a laugh! I bought those 25 at 19.45 in Dec 2023 when I hardly knew a thing about preferreds and BBs. Eventually, all UZD might end up at par in the acquisition.
Looks like ‘everyone’ is showing high of 23.83 for the day- so I guess pre-opening doesn’t count for a high.
Anyone have any info like IPT for the ARE baby bond? Here’s the filing:
https://www.streetinsider.com/SEC+Filings/Form+424B5+Alexandria+Real+Estate+Filed+by%3A+ALEXANDRIA+REAL+ESTATE+EQUITIES%2C+INC./24270560.html
Landlord –
The ARE offering is indeed for $25 baby bonds? I can’t recall the last time a property REIT issued babies.
Paying off 3.45% notes maturing this year….definitely a lousy refinancing on this one. The common shares have been a big time underperformer….trading near a 3-year low.
Naturally, ARE is a perma BUY on SA. For the last 10 published reports 9 are BUYs. That site is becoming useless.
LI and Papa Doc,
Looks like it’s not a baby bond and will trade only via CUSIP.
“The notes will be issued only in fully registered, book-entry form, in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof, except under the limited circumstances described …”
“The notes offered hereby are a new issue of securities. No market currently exists for the notes. We do not intend to list the notes on any national securities exchange.”
RWTP is trading today
Getting to be too many offers by RWT
Surprised I could get it at $24.70 and it closed under par at 9.25%.
TRTN PRF incoming
https://www.sec.gov/Archives/edgar/data/1660734/000119312525016492/d879519d424b5.htm
Early coupon talk 7.75 – 7.875. QDI
Thanks Jerrymac
Thanks J
IBKR is showing that six of Lumen’s most near-dated bonds have been called for early redemption on 2/15. This includes all three of the 2027 bonds (one holdco bond and two Level3 bonds). The Qwest 2025 bond appears notably excluded from this early redemption list..
Bizarrely IBKR shows the holdco ’27 bond at $91 / $93 bid/ask, which is nonsensical given it’ll be redeemed at $100 par in ~2 weeks. Unfortunately can’t trade it at IBKR b/c less than 25% of the bond is outstanding (silly IBKR rule).
If anyone wants to try buying it at a different broker, it’s offering quite the 2-week gain potential. The sellers appear to have missed the call notice and are asleep at the wheel..
Reg S – https://www.finra.org/finra-data/fixed-income/bond?cusip=U1566PAC9
Reg 144A – https://www.finra.org/finra-data/fixed-income/bond?cusip=156700BC9
Sorry if someone already posted this:
WEST READING, Pa.–(BUSINESS WIRE)–Customers Bancorp, Inc. (NYSE:CUBI) announced that the Board of Directors has declared a quarterly cash dividend on its Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series E (NYSE: CUBIPrE) of $0.61678915 per share. The dividend is payable on March 17, 2025, to shareholders of record on February 28, 2025.
The Board of Directors has also declared a quarterly cash dividend on its Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series F (NYSE: CUBIPrF) of $0.59290165 per share. The dividend is payable on March 17, 2025, to shareholders of record on February 28, 2025.
Re:BHFAL
I own some of these and appreciate the information you all are providing. Reading the Quantum write up on BHFAL is states that the issuer has the right to defer interest payments for a period not exceeding five years. No further language about delisting