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I bot xflt.pra at 25.13(24.87 stripped) 3/31/2026 maturity for a 6.71 ytm this is a term preferred which implies it shows up a balance sheet as a liability ..good article on S/A titled xflt.pra/an attractive security to hold
AT&T 5.625% Notes $TBC trading at par today. Someone rushing to exit? I believe the redemption price is higher, no?
TBC redeemed. Proceeds just hit my Fidelity acct. Not sure about TBB.
Tried to purchase TBC on Fidelity, no bid or ask apparently stopped trading.
It’s halted. Wasn’t 12/12 the redemption date?
Perhaps not supposed to trade today?
In that case, they bust all those trades
What is going on with AGM-E? It keeps falling; closed yesterday at 23.13. I have been away for a while so it may have been discussed last week.
MFZ–I don’t believe there is anything wrong. For some reason the market hates on AGM from time to time in addition the volume is thin–just 400 shares today. I own it and have learned to ignore the day to day moves.
All 4 issues have about the same CYld – all prices down, common has had a big jump up.
thanks for the reminder about these.
~6.3% qualified (agm-f at 20.9), super safe, upside potential.. count me in!
Good observation..agm/pre/pff pair has gone from near 3 sigma rich in march 2023 to near 1.5 cheap cheap today (3yr horizon).. it has outperform since september 2021.. would look to acquire on modest weakness
Further issuance of Blackstone BXSL’s 2028 note 5.35%– I don’t see the earlier issuance at QOnline –guess it’s a call-in to get it.
NEW YORK–(BUSINESS WIRE)–Dec. 11, 2024– Blackstone Secured Lending Fund (NYSE:BXSL) (“BXSL” or the “Company”) announced today that it has priced an underwritten public offering of $300.0 million in aggregate principal amount of 5.350% notes due 2028 (the “notes”). The notes will mature on April 13, 2028 and may be redeemed in whole or in part at BXSL’s option at the applicable redemption price.
The notes will be a further issuance of the Company’s 5.350% notes due 2028 that the Company issued on October 15, 2024 in an aggregate principal amount of $400.0 million (the “existing notes”). The notes will be treated as a single series with the existing notes and will have the same terms as the existing notes (except the issue date and offering price). The notes will have the same CUSIP number and will be fungible and rank equally with the existing notes. Upon the issuance of the notes, the Company will have $700.0 million aggregate principal amount of 5.350% notes due 2028 outstanding.
Gary,
Yes, it appears they trade only by CUSIP.
The BXSL note does NOT trade on an exchange. That’s one of the criteria for what QOL covers (“… exchange-traded debt securities”):
“The table provides detailed information for all income securities that QuantumOnline covers including traditional preferred stocks, trust preferreds, third party trust preferreds, exchange-traded debt securities, traditional convertible preferreds, and mandatory convertible securities for which we have detailed information.”
https://www.quantumonline.com/pfdtable.cfm?Type=AllIncSec&SortColumn=Company&SortOrder=ASC
From the 10/11/24 424B2 Prospectus on the BXSL Note (p. S-10):
“The Notes will not be listed on any securities exchange or quoted on any automated dealer quotation system.”
I know some here follow the CTA-B ( and A) – both down and CY >6%
B @ $72 lowest since 8/23/24
Not for me- at least for now.
good comment.. cta/prb/pff pair has seen cta underperform since july 2022… it bottomed in february and with exception of brief rally in sept/oct is about where it was then.. could make a case to buy as it has built a multimonth base…on absolute price basis 200dma comes in at 72.85
For anyone holding SACC, which matures on Dec. 30, Fidelity has it listed as coming due at $10 par rather than $25, which is what happened to another security a month or so ago. Fidelity won’t do anything about it–one must contact Sachem to notify them of their error and jump through all the hoops to get it fixed. If Fidelity has it maturing for $10 par, then it’s safe to say all the other brokerages have the same info, which they get from Sachem. I sold out of all of mine while it’s above par just to not deal with this again.
James, good move to sell SACC. I sold my SACC last week at above par and rolled into SCCC at below par.
Rich – In looking at SACH trend and their earnings, what prompted you to roll over SACC to SCCC?
Fl_Guy – I’m keeping a short leash on SACH and it was that SACC was coming due this month and I could roll that maturity date out a few more months and pick up some additional yield at the same time. SACC is paying 6.875% and SCCC is paying 7.75%.
Rich – I’m not sure your leash is short enough for me! I’m happy with SACC just being paid out on 12/30. Then I’ll see how SCCC behaves when the Fed pauses on its campaign of lowering rates.
blkrahn – Your plan is probably smarter than mine. Sometimes I get a little crazy with my moves. Ha, like today, I dumped some RILY Notes for a tax loss harvest that I should have avoided buying in the first place.
bikrahn–SACC will be paid out at $10 par, not $25, so you might not be too happy about that! Unless you call Sachem to try to straighten it out.
Your broker just doesnt make up whatever it thinks the investment should pay out. The money gets transferred to your accounts ultimately from the debtor, and they dont ask your broker what they think the price that they should pay you. The debt is basically closed and paid accordingly to what the prospectus says, and not some trading market value.
Right, Mr. C. They got the $10 info from Sachem. Fidelity won’t fix it, despite what the prospectus says. They told me to call Sachem to get it fixed. I sold out of it over par instead.
It’s interesting that you have so much trust in Fidelity and other brokers, despite how often they provide incorrect information. It doesn’t matter what price Fidelity or any broker shows for the investment. The bond has matured, and no matter what price your broker lists, you’ll be paid $25/share on the distribution date. If they ever paid $10/share, it would result in numerous lawsuits—although, frankly, that scenario is unimaginable and wouldn’t happen.
I don’t understand why you think it’s so crucial for the listed value to be accurate. Is it just sentimental value for you? The money would be in your account soon anyway, regardless if they list it at $1/share. Since the bond has matured and passed the ex-dividend date, if you were actually paid $10/share at distribution, it would be a huge scam. Such actions would indicate that every debtor is colluding with brokers to repeatedly defraud investors. But, again, this won’t happen because the debt agreement doesn’t allow it. There are various rules, processes, and procedures in place to prevent such occurrences.
Wow – Fidelity wouldn’t take care of that? Seems odd as why have individuals contact Sachem instad of just one (the instituion)? And why would Sachem do anything for you with the broker? Seems they’d just pass it off as they paid the broker. Interesting.
FL–In my experience, no brokerage will contact a financial company. I have no idea why. The financial company submits the info through a third party intermediary, and Fidelity, or any brokerage, merely receives it and does whatever it says. So it’s up to the originating financial company to fix it. Because I went through this with another company not that long ago, I wanted to avoid doing it again.
Wells Fargo Bond…4Yr Call Protection, Semi-Annual Payment
* 95001DHX1, 5.5% Coupon, $99.98, Senior, A1/BBB+
* YTC 5.501%, 11/25/28
* YTM 5.501%, 11/25/44
FTAIM (9.5% preferred, fixed until 2028) briefly spiked down to 25.07 this morning before recovering. Not seeing anything unusual with FTAI, FTAIN or FTAIO.
Was FTAIO called? It floats on Dec 15 at 3mL + 6.447%. Last 25.12.
Not seeing any news- odd – traded down in a few seconds, 5 min after opening- really in 9:35-9:35:12 on volume. Very fast & short- machines?
FTAIO is callable 12/31/24 and i looks like it will be ; FTAIM is callable in 2028 so the spike down is unexplainable ?
see Quantum for other pfd FTAI recently called
i’de add to my holding if i could at 26; remember just buy this in a IRA
or you will be in for a world of grief ( passive foreign investments require
expensive reporting requirements)
Dec 31? I’m seeing the first call/redemption date for FTAIO is Dec 15 (Sunday). The ex-date was Dec 2 and the pay date is Dec 16. I couldn’t find any info on the likely call. With price just above par, it’s trading like the call is coming.
rock2stocks…. No Press Release on the FTAI website announcing the redemption of FTAIO. However the quarterly conference call for the 2nd Quarter? it was stated both FTAIP and FTAIO would be called upon floating. I expect an announcement about FTAIP based on them following through with FTAIP. However, they did announce FTAIP 30 days in advance. Maybe the holders will get one months worth of the floating dividend?
Welcome to stuff that seems to be strange happening right before the end of the year. Happens every year when people are wrapping up their books for Q4.
good comment… ftaim/sjnk pair trading near fair value now.. yesterday looked like a “fat finger”
Short-term cash substitute:
CKNQP full redemption on 1/1/2025.
At 101.15 ask, I calculate ~ 6.5% YTC.
Looks like a full $1.55 quarterly div (6.2% coupon X $100 par / 4): accrual period 10/1/24 thru 12/31/24. Div goes ex 12/16 (next Monday).
$101.55 per share proceeds minus 101.15 cost = $0.40 per share gain.
Holding period = 22 days (today through 12/31/24).
Do your own calculation to check the YTC.
https://www.cobank.com/corporate/news/2024/cobank-issues-300-million-of-preferred-stock-nov
Any Info ??
ENBSF — Enbridge INC Cum Redeemable Preferred listed late today on FINRA Addition List.
FINRA lists ENBSF as Series 9, which happens to be an existing Canadian issue.
https://www.enbridge.com/investment-center/stock-and-dividend-information/preferred-hybrid-shares
I don’t know what to make of this.
Gladstone Investment NEW ISSUE – 2030 maturity
https://www.sec.gov/Archives/edgar/data/1321741/000119312524273441/d685272d424b2.htm
Any initial price talk guidance?
Thanks 2wr!
Charles
Falling knife candidate…..
LYB
LYB…..
Holders of SLMNP should be concerned
Concerned? The amount of money they are currently paying common shareholders is a HUGE buffer. Unless they have some way to stop paying SLMNP without ruining their reputation you still have the PUT option to exit at a known amount.
Not really concerned at all. It is a money making company.
Westie, Thanks for the concern if you meant me, but not a holder of SLMNP, NFE or GMLPF. Never have and never will.
I have problems with other children. LoL
what brought this on, pray tell?
I am going to guess the cyclical nature of chemical companies. Seems like LYB, DOW, and etc… are in a slump and seeing lower earnings right now. Thus a stock price trending down at the moment.
Fc was my guess exactly. I looked at DOW, LYB, DD, WLK all down over a rolling 6 month or so period.
I would expect some of these companies to be up with Nat gas hitting historical lows so their feedstock is cheaper, but there maybe a glut of finished products since all are competing in the international market. All sorts of mixed signals.. could indicate inflation is down or could also indicate a slowing economy?
Interesting side note, having a baby shower for a niece in a couple months. the parents requested all gifts be natural materials, no plastics. Their concern is micro plastics are showing up everywhere including in our blood and chemicals are affecting hormones and giving us health problems.
New Fortress Energy (NFE) parent of GMLPF recently issued a “going concern statement.” In addition to GMLPF, they have many outstanding bonds. Not clear how this might affect GMLPF.
Statement from NFE:
As of November 12, 2024, the date of the issuance of these financial statements, the Transactions have not closed, and there are certain conditions precedent that must be met prior to closing. In the absence of closing the Transactions, the Company’s current liquidity and forecasted cash flows from operations are not sufficient to support the repayment of the 2025 Notes, in full, prior to the Springing Maturity Date, and as such, management concluded that substantial doubt exists related to the Company’s ability to continue as a going concern. Management expects all conditions precedent to be achieved and the Transactions to close in the coming weeks, which will alleviate the substantial doubt. However, there can be no assurance that the Company will be successful in closing the Transactions.
https://ir.newfortressenergy.com/static-files/cfd1244e-16f5-4f83-a0f7-74e14917056a
What to make of the increase in Price of NFE & GMLPF since the announcement?
Tex the 2nd…. New Fortress issued an updating to their refinancing November 26th. I believe they have addressed those concerns expressed in the letter. They have addressed everything but GMLPF. They have been silent on it since that letter early in 2024 on GMLPF.
https://ir.newfortressenergy.com/news-releases/news-release-details/new-fortress-energy-financing-update.
Still paying the div- for now, but graymkt.
DJ, thanks for the update from New Fortress. They have avoided defaulting on their 2025 notes, but it is not re-assuring that they had to issue a going concern notice. For III type preferreds/babys that we follow around here, how many going concern statements do we see every year, maybe 1 to 3 is my guess? On the safety and security spectrum, I think this puts NFE at the bottom of the list for that that have not defaulted yet. And that is not a good place to be. Still not clear what the implication for GMLPF is. Here is the latest from Moodys:
New York, November 26, 2024 — Moody’s Ratings (Moody’s) confirmed the B2 corporate family rating (CFR) and B2-PD probability of default rating (PDR) of New Fortress Energy Inc. (NFE). Concurrently, we downgraded the company’s existing 2025, 2026 and 2029 senior secured notes to B3 from B2, and its senior secured term loan B to B2 from B1, which were previously on review for downgrade, and assigned B2 ratings to new senior secured 2029 notes issued by NFE Financing LLC, an indirect subsidiary of NFE. The SGL-3 Speculative Grade Liquidity rating is unchanged. We assigned a negative outlook to NFE Financing LLC, and the outlook for NFE was changed to negative from ratings under review.
Of generalized note from this Moody’s report is the distinction they make between “senior secured note” and “senior secured loan:” “we downgraded the company’s existing 2025, 2026 and 2029 senior secured notes to B3 from B2, and its senior secured term loan B to B2 from B1….” I can’t say I’ve spent much time differentiating between the two, but apparently there is enough for Moody’s to rate the secured note one notch below the secured loan… I wonder if that’s by definition or specific to NFE? I would think that given both are described as “secured” the difference would be essentially semantics… I’ve not looked but do you happen to know if Moody’s explains why the secured loan is more credit worthy than the secured note?
2wr
My guess is what they are secured by
Tex the 2nd….. New Fortress Energy has only really kicked the can down the road to 2026 with the debt restructuring, new $2.7 Billion note issuance and a $400 MIllion additional common stock sale. They are still drowning in debt, something like $8 billion. I just read they are now considering selling some assets, which they have a number of in Jamaica, Puerto Rico, Mexico, and Brazil to name a few. This is a very sick company, but they may pull it out, particularly if LNG prices stop falling and rise back to the 2023 price. I think the CEO Wes Eden was good for $50 million of the new stock, so he is betting on pulling it out of the ditch. I guess that is a hopeful sign…. I am following them mostly for my dumb*** asleep at the wheel over not selling my GMLPF holding before it got delisted and moved to the expert market. If GMLPF survives another year paying the dividend I will break even IF I can get $10 per share for it then. My number one problem child. At least I mostly win at investing, but I really hate having losing on one…….
Holder of GMLPF here….appreciate the update.
Likewise.
NFE common has rebounded up 59% from its low on Nov 1st (after a brutal -79% YTD collapse). Recently upgraded by Deutsche Bank to hold. They’re currently working on JV deals to de-lever their balance sheet. Their new 12% coupon bond rallied right out of the gate north of par (last trade $106).
Re: GMLPF – over the past few months, there often appeared to be an iceberg buyer (showing only a 100 share size on the bid for days at a time, but scooping up every share sent their way, occasionally 10-20k shares in a day would hit their 100 share bid). This past week, instead of the 100 share iceberg, the $10 bid was displaying size of 15,000 shares on IBKR. Read into that what you will..
Two actively-managed funds (the Virtus InfraCap U.S. Preferred Stock ETF and the Ancora Income Fund) both continue to hold positions in GMLPF.
(full disclosure – holding GMLPF, and added a speculative position in their Mar ’29 bond in late Sept)
Bank of America Bond…Monthly Payer, 3 Year Call Protection
* 06055JHR3, 5.55% Coupon, Pays Monthly, Senior, A1/A-, $100
* YTC 5.55%, 12/16/27
* YTM 5.55%, 12/16/44
* First Payment 1/16/25
DYODD
S&P Global Ratings lowered its rating on Prospect Capital Corp. to BB+, or one step into junk territory, citing losses and a deterioration in credit quality for the $7.6 billion private credit fund.
Compared to peers, Prospect has received a higher proportion of its income from payment-in-kind arrangements, which allow borrowers to defer cash interest, S&P said in a note on Friday. The fund, which is publicly traded under the PSEC ticker, also has more debt on non-accrual status compared to peers, S&P said.
In the quarter ending on Sept. 30, Prospect reported $100 million in realized net losses tied to the restructuring of a loan for Research Now Group, which has rebranded as Dynata, and $69 million in losses on its structured subordinated notes book, according to S&P. The fund recorded $124 million of unrealized losses in the quarter.
“Over the next 12 months, we expect that PSEC’s overall PIK income will rise as select borrowers will continue to have liquidity pressures and an expected decrease in base rates will lead to lower net investment income,” the ratings firm said in the note.
Prospect’s stock also trades at a discount to its net asset value, which “limits its ability to raise funding from equity markets to support growth,” S&P said.
Thanks Fabrib
Get You wallets ready III’ers
CRBD queued up at FIDO woof! and Schwabby!!!
1 share traded
CRBD
Schwab took my order
FIDO not so much – wants last traded price first
25
25.40
2000 shs just traded
FIDO – no problem now – over 400k traded, 24.34
Bank of America Bond….Monthly payer, 5Yr Call Protection
* 06055JHJ1, 5.55% Coupon, Pays Monthly, Senior, A1/A-, $100.
* YTC 5.55%, 11/27/29
* YTM 5.55%, 11/28/44
DYODD
Wow, Newbie, great one! Just bought $3000 in my IRA at Sxhwab with no hitch! Fan59
Looks like it sold out! Told my brother and he snagged $15 k on time, then minutes later, said unavailable! Great One, Newbie, keep em coming!
Monthly payouts on the 27th of each month, starting 12/27/24 according to prospectus 🙂
Thanks Newbie. I bought 5k of this and then bought 5k of NLY-F. Some higher risk balanced with some low risk.
Is anyone else having problems with weird messages when logging-in to Fido? I can’t get in.
had to switch from safari to firefox- got in.
Gary, I’m using Chrome and Fidelity took a long time to send authorization code.
FIDO worked few min later.
Might have been an Apple problem- their stock app on the iphone was not working either, now it is.
Who knows, an overnight software update glitch or even security problems.
There is definitely some problem at Fido. I tried to place a trade and would not let me select any of the 4 accounts I have there.
Might have had some kind of update this afternoon, all my screen settings shifted from where they were previously.
OPP-C is trading at FIDO. Is this a $10 par? Quote right now is $14!
Yes it appears to be
https://innovativeincomeinvestor.com/rivernorth-doubleline-strategic-opportunity-fund-issues-new-term-preferred/
NWGG,
I went back and found Tim’s post.
https://innovativeincomeinvestor.com/rivernorth-doubleline-strategic-opportunity-fund-issues-new-term-preferred/
Certainly says it’s a $10.00 preferred
Yes, OPP-C is a $10 liquidation preference.
https://www.sec.gov/Archives/edgar/data/1678130/000114331324000118/OPPPRC120224.pdf
FIDO is not allowing trades. That darn message pops up saying exceeds # of shares allowed. Come on, 100 shares?
I don’t have a Fidelity account but am curious. If they limit a sale to 100 shares at a time, could you enter multiple 100 share orders spaced a penny apart? Would that work / have your tried that?
Hi Proto, Sort of. You can try putting in multiple orders for the same price just less shares say 50 or 75 but at some point if you exceed the average number of shares trading that day with the total your placing they will deny the order.
Joke on the underwriters with Fidelity being a major broker and not allowing trades they can’t move the shares out of inventory to the general investing public.
Somebody should point this out to the underwriters so they can put pressure on Fidelity to stop this madness of putting share qty limitations on orders.
Complain to them that Fidelity would not let you buy the shares you wanted.
I am surprised they have not already rescinded the policy because it is using up their resources, draining their goodwill, and causing people to close accounts or not move more money in. There is literally zero upside for them in continuing to be stubborn about it. I would bet it even increases their risk of a lawsuit rather than lessens it.
BTW, Fidelity just let me put in for 750 shares. I lowballed it because I don’t really want it unless it is a great deal, but I wanted to see how high I could run the share count up before it spit it back at me. Between 750-850 was the spot where that happened. But it will fluctuate all day.
Scott I finally cleaned up all the 50 share trades and put in a low ball bid to YOC 7% I don’t care if it never hits. Unless I can get a taker at my price, not interested.
Not sure about the penny part, but multiples — 100 x 2 won’t work- tried it a while back on a sale.
Amex trading halted in OPP/c
and now reopened.
if this was an exchange error…and I think it was as IB had it showing as a $25 preferred, the trade would be busted.
Many years ago,I recall Forest Oil splitting 2 for 1 and NYSE opened at the pre-split price and traded there for 35 minutes until I called DOT Services . They notified the Specialist, who then got a governor. Trading was halted and all trades were busted. Luckily it appears only a few trades occurred./
Seems like a good short candidate
Am I misunderstanding something with OPP-C? a 10 par that pays a 6% yield trading at 14?
Are people thinking this is a 25 par and buying it for too high a price? The volume does not seem very high from what I can see but this sure is confusing. When I read it was a 10 par I immediately dismissed it as a possible future purchase because I did not feel like trying to understand this oddball situation.
Eagle Point Credit (NYSE:ECC) has priced an underwritten public offering of $100 million principal amount of its 7.75% notes due 2030, resulting in net proceeds of approximately $96.5 million.
METCZ selling now, who;s in? .Got some at 24.60. Don’t know if that’s a good deal or not. Hoping for the usual flip, if not I’ll earn some divvy.
I own a small taste of METCL which matures in 2026. Feel ok about that. Since the price has fallen I will attempt to buy a little at METCZ at 24.58. 8.5% seems about right for this company and it can replace my METCL when it matures in a year and a half. Naturally buying below par makes this more enticing. If i get it great, if not oh well. Life goes on.
Coking or metallurgical coal market seems to be consolidating. I have heard that coking coal is more profitable than traditional coal (I’m no expert here though). Here is an article talking about some recent mergers with some well known companies. I am also holding the METCZ to have some additional di-worsififcation from financials. YMMV DYODD
https://www.reuters.com/markets/commodities/consol-energy-arch-resources-merge-create-5-bln-coal-mining-entity-2024-08-21/
Bea follows this company but I don’t know if she will give her prospective on it.
Coal reminds me too much of the shipping companies. Filing BK to get away from liability for pollution, workers pensions etc.
Where I was born they left behind creeks running orange , wells with a rotten egg smell, barren moonscape of rock and shale that hardly anything can grow on. Left the cleanup to the state.
Yeah, you have a point CM. I saw a video on YouTube in Virginia. The guy says that a landowner sold the top of a hill. Apparently, they blow the top of the hill off to get to the coal underneath. The closer you get to it the more coal junk everywhere. Coal isn’t going away as a source of energy anytime soon though hate it or not.
GREENWICH, Conn.–(BUSINESS WIRE)– Eagle Point Credit Company Inc. (ECC) (the “Company”) (NYSE:ECC, ECCC, ECC PRD, ECCF, ECCX, ECCW, ECCV) today announced that it has priced an underwritten public offering of $100 million aggregate principal amount of its 7.75% notes due 2030 (the “2030 Notes”), which will result in net proceeds to the Company of approximately $96.5 million after payment of underwriting discounts and commissions and estimated offering expenses payable by the Company. The 2030 Notes will mature on June 30, 2030, and may be redeemed in whole or in part at any time or from time to time at the Company’s option on or after June 30, 2027. The 2030 Notes will be issued in denominations of $25 and integral multiples of $25 in excess thereof and will bear interest at a rate of 7.75% per year, payable quarterly, with the first interest payment occurring on March 31, 2025. The 2030 Notes are rated ‘BBB+’ by Egan-Jones Ratings Company, an independent, unaffiliated rating agency. In addition, the Company has granted the underwriters a 30-day option to purchase up to an additional $15 million aggregate principal amount of 2030 Notes to cover overallotments, if any.
The offering is expected to close on December 10, 2024, subject to customary closing conditions. The Company intends to list the 2030 Notes on the New York Stock Exchange under the symbol “ECCU”.
Based on my best efforts to find these things, Egan Jones is NOT an NRSRO (Nationally-Recognized Statistical Rating Organization) for asset -backed securities , including CLO’s.
That was true as of June 2023. Egan has a checkered history IMHO and I personally would not rely on their ratings.
I posted on this yesterday in another category.
Are you saying there are different NRSROs for different security classes and
Egan Jones is not one for asset-backed securities such as CLOs but they are for other types of debt? Because they are listed as an NRSRO with the SEC – https://www.sec.gov/about/divisions-offices/office-credit-ratings/current-nrsros. None of this negates your conclusion – “I personally would not rely on their ratings.” Can’t get an IG rating elsewhere?? Go to Egan Jones……..
2wr,
Yes, that’s exactly what I am saying.
click through that link and look at the 2022 administrative order.
It contains this, inter-alia:
The 2013 Order revoked EJR’s NRSRO registrations for the classes of (a) issuers
of asset-backed securities and (b) issuers of government, municipal and foreign government
securities, and barred Egan from association with any NRSRO registered in those classes, with a
right to reapply for registration and reentry after eighteen months. It further ordered EJR to
disclose prominently that its ratings of asset-backed and government securities were not issued
or maintained by a registered…..
Now, I ask you what you think of a company that would hire Egan to rate something when it knows or should know that Egan is NOT an NRSRO related to that asset type?
I think very little of that issuer, and in fact I think the issuer becomes MORE suspect.
Thnx for the details lt……….. I should have looked on their site too… then again with the respect we both have to Egan Jones it’s no wonder we didn’t right off the bat…..lol
2wr,
Had I been smart enough to go to Egan’s website, this is on the front page:
Egan-Jones is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO) for certain asset classes (Egan-Jones is NOT registered as an NRSRO in respect of issuers of asset-backed securities or issuers of government, municipal or foreign government securities), and certified by both the European Securities and Markets Authority and UK Financial Conduct Authority.
LT I have enough of 3 other issues with ECC that I’m not going to add another horse to my stable. Not saying anything is wrong with this issue especially if you can get it under par. But I like to spread my risk out.
As for Eagan I am getting cynical at my age not to mention all the other ratings agencies.
selling where? not tradable on IBRK yet
Yesterday ( on SA) they announced that their Brook mine can produce 3 rare metals ( that China just stopped shipping to the US), so their price popped but has come down some.
Gary, if you’re going to speculate on rare earths look at MP
This mine is already operating in the Calif desert and has backing from the DOD
https://www.investing.com/news/insider-trading-news/mp-materials-ceo-james-litinsky-sells-shares-worth-418-million-93CH-3755544
Do your own due diligence
I picked up on another board that Cobank is offering a new issue and using proceeds to call an issue. I don’t recall seeing it here, but I am so far behind on reading my feed that I may have missed it. Apologies if it is old news that has been covered.
DENVER (November 25, 2024) — CoBank, a cooperative bank serving agribusinesses, rural infrastructure providers and Farm Credit associations throughout the United States, announced today that it has issued $300 million of preferred stock in a transaction exempt from registration under the Securities Act of 1933, as amended.
The new Fixed-Rate Reset Series M Non-Cumulative Perpetual Preferred Stock (“Series M Preferred Stock”) has a fixed dividend rate of 7.125% percent until January 1, 2030, after which the dividend rate will reset every five years to a rate equal to the five-year U.S. Treasury rate plus a spread of 2.818 percent. J.P. Morgan and Morgan Stanley served as joint bookrunners on the Series M Preferred Stock transaction. Barclays and Truist Securities served as co-managers. The proceeds from this issuance will be used to redeem all of its issued and outstanding shares of Fixed-to-Floating Rate Series H Non-Cumulative Perpetual Preferred Stock, Par Value $100 Per Share (“Series H Preferred Stock”) on January 1, 2025.
Hello Private; Yes, I called my Schwab Team on this issue BUT just like their last issue which was a 7.25% it has a minimum of $250,000. I actually bought that issue at the time paying $102. This issue I was going to buy as well but only wanted $100K but was told thats a NO GO as the minimum is $250K.
Have to be careful with Cobank issues at schwab. I am drawing a blank at the moment on the rule number (somewhere down in 144, IIRC), but schwab says some of the Cobank issues are subject to a special rule that makes them messy – and schwab doesn’t communicate it well.
I went through it with schwab a few years ago where they would let me buy (had to be a qualified investor), but wouldn’t let me sell (I was trying to flip it because of a lot of price volatility). They said I had to go find a qualified buyer (on my own), agree the price, then bring the transaction to them and they would execute it for us. Who could do that?
Of course, then didn’t say anything about their interpretation of the rule when I was buying – only when I wanted to sell. Note that they didn’t enforce the rule this way a few years before (when I was happily flipping), but surprised me with it. I think there may have been a new manager of the group that manages 144 issues. I talked to her a couple of times and she was adamant that Schwab was required to act that way.
Maybe she has moved on, but watch out.
(Luckily for me, the issue was called not too long after this all happened, so I didn’t have to deal with it anymore).
PRIVATE; A big THANK YOU goes out to you. I freely admit I did not know that about Schwab. Luckily for me I don’t need to sell it and I’ve never been a flipper. I own approx. 65 fixed income investments of various sizes and will just leave this one for my wife and she can pass it onto the 3 kids. I was lucky in life landing a great job and just live off of the interest that these things throw off. Probably lots of guys on this site in the same boat. Thank You again Private.
Apologies, I just saw that Newbie already spotted this.
Private that is a compliment to this site and all who share here that you can read the news here first.
If Ziono/Zionl have been called and the ex date has passed why are they trading above par?
Is somebody paying over $25 to get $25 in the future?
Rvert,
I haven’t seen any announcement that they’ve made it official yet. No press release and no 8-K filing.
In the press release announcing the redemptions, they didn’t formally announce the call. They said:
1. the Board “has authorized the following capital actions”, and then they listed ZIONO, ZIONL and some others.
2. “These actions are expected to take place during the fourth quarter of 2024.”
From my read of the prospectuses for ZIONO and ZIONL, they can redeem them on any day, not just on a div pay date, and they have to give between 30-60 days’ notice. The earliest they can redeem is January 3rd. At 25.04 ask for each, I calculate a little more than 3% YTC, so it’s some positive return (but less than holding cash in my SPAXX acct at Fido).
It shows called at Schwab and Fido. It won’t be the first time they are wrong.
I don’t see the notice either in the website. I believe Bloomberg has them called on 12/16.
GREENWICH, Conn. – December 3, 2024 – Eagle Point Credit Company Inc. (the “Company”) (NYSE:ECC, ECCC,
ECC PRD, ECCF, ECCX, ECCW, ECCV) today announced that it has commenced an underwritten public offering
of unsecured notes due 2030 (the “2030 Notes”). The 2030 Notes will be issued in denominations of $25 and integral
multiples of $25 in excess thereof and are expected to pay interest quarterly. The public offering price and other terms
of the 2030 Notes are to be determined by negotiations between the Company and the underwriters. The 2030 Notes
are rated ‘BBB+’ by Egan-Jones Ratings Company, an independent, unaffiliated rating agency. In addition, the
Company plans to grant the underwriters a 30-day option to purchase additional 2030 Notes on the same terms and
conditions to cover overallotments, if any.
The 2030 Notes are expected to be listed on the New York Stock Exchange and to trade thereon within 30 days of the
original issue date under the ticker symbol “ECCU”.
https://www.sec.gov/Archives/edgar/data/1604174/000110465924125084/tm2429841d4_497ad.pdf
https://www.sec.gov/ix?doc=/Archives/edgar/data/1604174/000110465924125075/tm2429841d2_424b2.htm
J–just saw this as I was working on the ‘headlines’. Thanks
I believe Egan-Jones is NOT an NRSRO (nationally recognized statistical rating organization) as it relates to asset-backed securities like CLO’s.
At least, they were not as of 2023 from one piece I read.
Personally, I would not rely on any Egan rating. that’s just my opinion. i don’t know anyone who relies on their ratings, but, ofc, I don’t have many friends except my dogs . they have securities trading ” collars” that remain in effect.
“An order issued by the Commission on January 22, 2013 (the “2013 Order”)2
revoked EJR’s NRSRO registration for rating the classes of issuers of (a) asset-backed securities
and (b) government, municipal, and foreign government securities, and also ordered EJR and
Egan to cease and desist from committing or causing any violations of various securities laws.
By rating two asset-backed securities and two municipal securities in 2017 and 2018 and making
statements indicating that it was a registered NRSRO, but without prominently disclosing that
the ratings in such ratings classes were not issued or maintained by an NRSRO that was
registered to issue ratings in such classes, EJR violated Section 15E(f)(2) of the……..
has something changed?? perhaps. I dunno. If not, I have to wonder what kind of company would pay Egan for a rating that isn’t widely recognized. Is this like attending a college accredited by an organization the college invented?
Shouldn’t come as too big a surprise, Morgan Stanley is calling their March 8, 2027 5.4% CD per December 9th.
metcz trading @ fido schwabby
Thanks, bids filling c 24.70 @ Fido.
Picked up 300 shares at 24.70. Lets see what it does.
METCZ also trading on Vanguard @ $24.72. Mulling it over some…….
Fido trading, ETrade is showing “Trading in this security is currently restricted.”.
E-Trade now processing orders. $24.70
RCD incoming
READY CAPITAL CORPORATION
% Senior Notes due 2029
https://www.sec.gov/Archives/edgar/data/1527590/000110465924124911/tm2429861-1_424b3.htm
Thanks J–just saw it.
J ,
Is that you?
We’ve been looking for you.
-K.
In case anyone missed it, CoBank announced last week that they will indeed be calling their Series H preferred (CKNQP) on Jan. 1, 2025:
https://www.cobank.com/corporate/news/2024/cobank-issues-300-million-of-preferred-stock-nov
JPM Bond Offerings…1 annual & 1 semi-annual payouts
* JPM 48130CVM4 ~ 6% Coupon, Senior, A/A1, $100.34, Annual, YTM 5.97% 11/29/44, YTC 5.81% 11/29/26.
* JPM 48130CVV4 ~ 5.5% Coupon, Senior, A/A1, $99.84, Semi-Annual, YTM 5.515%, YTC 5.515 11/29/26.
DYODD
I’m curious if anyone understands the math regarding how much add’l yield exists from the call. To clarify, what portion of the coupon rate is accounted for by giving the lender a call.
I haven’t lt, but if you look at any list of CDs or even the new issue area for Fed Agency bonds, you can quantify it pretty closely because you can see both n/c and long callable vs short callable issues of the same maturity range offered side by side…
Gee 2wr.
That’s a great idea. No reason to think you’re getting a better deal with 1 or the other.
I think I’m going to go with another 5 year Mass Mutual 5% no commission annuity from DPL financial.
I was thinking what the biggest risk is in the annuities of a Best A++ rated company. I think it’s the risk of significantly higher deaths–excess mortality, because most are life insurers too.
There is an interesting article out about how excess mortality has continued since COVID and some insurers think it’s not going to regress to the mean.
https://www.swissre.com/press-release/Covid-19-may-lead-to-longest-period-of-peacetime-excess-mortality-says-new-Swiss-Re-report/eadc133c-01bd-49e8-9f3a-a3025a3380e6
US 2yr/10yr Spread Inverts…now (-0.01)…does it matter anymore?
It matters if you identify a trend.
R2S — 2+ months downward descent since 9/24…let’s see if it continues or not
Liquidation Preference: $50.00 per share
Dividend Yield: 6.00% – 6.50%
Threshold Appreciation Premium: 20.0% – 25.0%
Mandatory Conversion Date: December 1, 2027