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1,488 thoughts on “READER INITIATED ALERTS”

  1. LOS ANGELES–(BUSINESS WIRE)– Hudson Pacific Properties, Inc. (NYSE: HPP) (the “Company”) , a unique provider of end-to-end real estate solutions for tech and media tenants, today announced that its Board of Directors suspended the Company’s quarterly dividend on its common stock, commencing with the third quarter dividend that would have been paid in September 2024.

    Chairman and Chief Executive Officer Victor Coleman said, “Studio demand has recovered more slowly than anticipated following the union strikes and negotiations, and we no longer foresee the need for a distribution in relation to taxable income in 2024. Our Board therefore made the decision to suspend our common stock dividend to preserve capital in an ongoing challenging environment.”

    In addition, the Board declared a dividend on its 4.750% Series C cumulative preferred stock of $0.296875 per share, equivalent to an annual rate of $1.18750 per share, which will be paid on September 30, 2024 to preferred stockholders of record on September 20, 2024.

    https://investors.hudsonpacificproperties.com/investor-resources/press-releases/press-release-details/2024/Hudson-Pacific-Properties-Suspends-Common-Stock-Dividend-and-Declares-Preferred-Stock-Dividend/default.aspx

    Reply

    1. Thanks J, I completely forgot about this company. Between the property they owned in San Francisco and the properties they had in Southern Calif. catering to the entertainment business I stayed away from this co. as an investment.

      Reply

      1. surprised it is easy to get this or the they can save interest, I assume they might go BK. Refi to me would be at higher rate. I’d not give them money. I had these and sold awhile back with good gain but threat of BK making it make sense. I am sure where I resent the capital did better.

        Reply

    3. and the next “shoe to drop” will be the div on the Preferred
      if I held this one , i’de be out of it in a flash !

      Reply

    2. And GECCM outgoing:

      We expect to use the net proceeds of this offering together with cash on hand to redeem all of our outstanding GECCM Notes. The GECCM Notes bear interest at 6.75% per annum and have a stated maturity of January 31, 2025.

      Reply

      1. Didn’t these guys once have a note or preferred issue pulled from the market due to no interest? Of am I confusing them with somebody else?

        Reply

  3. Once again- 2 shares of SLMNP went for $943… something afoot here?
    Fat finger x2 in a week- seems unlikely, but possible.

    Reply

    2. Have 10 @ $925 for sale but no biters. It must be movement between different accounts within the same broker.

      Reply

      1. If interest rates fall, SLMNP may climb towards $1000 longer term. At around $848 this was a no brainer buy with that put option as long as LYB does well. I think I will hold as my average is around the put price. Where else can I get 7% with a break even put and possible capital appreciation?

        Reply

        1. FWIW, I put in a GTC sell for my few units last week, they were picked up Friday @ 940. Don’t get it but not complaining.

          Reply

  4. US Bank Bonds Today…

    JPM
    * 48130CRV9, 5.5% Coupon, Senior, A-/A1, Price 100.35
    * YTM 5.471% 9/9/44, YTC 5.311 9/10/26.
    Citigroup
    * 17290AD49, 5.4% Coupon, Senior, A3/BBB+, Price 100.10
    * YTM 5.39% 8/30/39, YTC 5.35% 2/28/27

    Reply

    1. So if rates go lower, these will probably be redeemed in a couple years. If rates go up, you’ll lend them money for 15+ years for below market rates. What a great deal! (sarcasm font)

      Reply

      1. Just like many preferred stocks…when rates go lower, many preferreds will be redeemed at first call & when rates go higher, count on loaning companies money for below market rates potentially for perpetuity…

        Reply

        1. No, not just like preferreds. These don’t have the potential for large capital gains, right? That’s kind of a big difference.

          Reply

          1. MANY of the 3-4% preferreds from the 0% FED COVID era have major capital losses for those that bought back then…I prefer term preferreds & corporate bonds with lower risk, lower reward…BUT with an actual maturity date. Your risk tolerance is different & I respect that DW. Best regards!

            Reply

            1. Since you mentioned major capital losses due to rising rates…What’s going to happy to a 2044 maturity bond if rates go up?

              Reply

              1. DW—The same thing that will happen to your perpetual preferred when rates go up, both will take a hit, but I get principal back in 2044 while you may have a perpetual loan without ever recouping principal at par.

                Reply

            2. Term preferreds won’t go up in price much. Those old perpetuals much below par have room to grow if the stars align. That’s why some of them don’t pay much more than the termies. As a trader I lean toward the higher volatilty perpetuals though I trade both types.

              Reply

              1. The issue with these is the quick call option for the issuer paired with the long maturity date. Someone buying these is taking all of the same long duration interest rate risk but without any of the possible capital gain upside. It’s a lose-lose investment. Rather than purchasing these lose-lose issues, I’d suggest thinking about just sitting in cash and then you could be liquid in case asset prices fall significantly.

                Reply

                1. They pay a lot more than cash that’s not a lose. The only real loss is default. Rising interest rates if they happen may be worse than what you paid for but rarely worse than cash if they keep paying.

                  Reply

      2. Fine with me when they are paying higher dividends to retain the option of calling. If you want long term safety accept a lower divvy instead of rolling the dice in exchange for higher payout.

        Reply

  5. Conifer Holdings (CNFR) just sold its Insurance business and changed its CEO.
    They got a publicly traded senior unsecured 9.75% BB (CNFRZ) due 2028 quoted at 22.00. I just bought some on the assumption that after the sale cash balance far exceeds their outstanding debt, so they will be servicing the BB (for some time). NO investment advice, DYODD.

    Reply

  6. Bloomberg…

    * B. Riley confirms talks on asset deals to cope with debt
    * Oakmark is near deal to buy majority stake in two B. Riley units
    * Big Lots files bankruptcy

    Reply

    1. They can rebrand as Broke Lots. Their business is buying overstocks cheap and selling cheap. Apparently it’s getting harder for them to buy cheap. Ollie’s still finds a way.

      Reply

      1. I thought a lot of places like TJ Max and Ollie’s in many cases were just making their own cheap and inferior merchandise in many cases. They just pay to use a brand and slap it on if they want it to look “fancy”. The days of finding a ton of overstock are not as easy as the past with how companies operate.

        So using TJ Max as an example they make super cheap shoes and just pay Nike for the brand they slap on it. They are nothing like Nike bought at the Nike Store. The list is endless of these types of situations. From shoes, to shirts, to socks, to home items, etc… That is how these stores are ran now days.

        Reply

    2. RILYM closed up 18.70% today and closed at $20.88. The chances that RILYM will pay in full have gone up considerably. Management just needs to dot the i’s and cross the t’s on the proposed deals. If they do that in the next few weeks, RILYM should jump up back above $24.

      Reply

      1. “The net proceeds from the offering will be approximately $ , after deducting the discounts and commissions payable to the underwriters and estimated offering expenses payable by us (and assuming the underwriters do not exercise their option to purchase up to an additional $ aggregate principal amount of the Notes). The Company intends to use these proceeds for funding of investments, repayment of existing debt and general corporate purposes. For further information, see “Use of Proceeds” in this prospectus supplement.”

        This is in the doc… Unfortunately, I do not have any extra info

        Reply

    2. I see they continue to skirt the issue of addressing the extra layer of protection theoretically provided to NEWTZ holders alone, not this new issue for example, even though this new issue will be pari-passu. A quick review shows no mention of it in this prospectus whatsoever, yet it would seem as though as long as NEWTZ remains outstanding NEWT cannot issue new debt if it violates the 1940 Act restrictions as it pertains to asset coverage…. The latest 10q does say, “As of December 31 2022, our asset coverage was 169%. Although we are no longer regulated as a BDC, certain covenants in our outstanding 2026 Notes require us to maintain an asset coverage of at least 150% as long as the 2026 Notes are outstanding,” but note they DO NOT AND HAVE NOT UPDATED their asset coverage ratio since 12/31/22. Are they in violation? I do not have the abilities to say. But how can it not be material enough to even be mentioned? Yeah, I know, after all this time I should just let this go, but if NEWT can ignore it by not continuing to update their coverage ratio, then what’s to say the 1940 Act asset coverage ratio is toothless when it comes to protection all BDC noteholders?

      Reply

      1. 2whiteroses, NEWT continues to act like a BDC with borrowing money and using it for investing and funding operations. They are in a growth mode full steam ahead while clouds gather on the horizon with a possible storm brewing of a recession. They are acting more like a BDC than a bank holding company. Do they even have depositors like a normal bank?

        Reply

  8. On September 4, 2024, the Board of Directors of Cyclacel Pharmaceuticals, Inc. (the “Company”) passed a resolution to suspend payment of the quarterly cash dividend on the Company’s 6% Convertible Exchangeable Preferred Stock CYCCP (the “Preferred Stock”) scheduled for November 1, 2024. The Board of Directors will continue to evaluate the payment of a quarterly cash dividend on a quarterly basis.

    https://www.sec.gov/ix?doc=/Archives/edgar/data/1130166/000110465924097731/tm2423533d1_8k.htm

    Reply

    1. Just checked their IR site.
      Their press release page trumpets their attending the Wainwright conference, but nothing about this, which is in a 1 line SEC filing….
      That conference is turning out to be cursed.
      One of the other participants fired their CEO a few months ago and just published this morning that they have given up looking for another one. That one is SAVA, and anytime you can’t find a CEO, that is a red flag bigger than the ChiCom’s flying over the forbidden city in Beijing…so this is probably a case where everyone knows the winning lottery ticket number, they just don’t know when it will be drawn.
      So if anyone is looking for the potential of astronomical returns, buy a few bucks of very cheap puts every week on that one until you hit the jackpot.

      Not investment advice, DYODD….

      Reply

  9. (Problems posting on Sandbox where it should be. . . )
    Last week I did a study on how utilities bought in 2008 have performed to date. It was part of my post proposing that using the “Gordon Dividend Growth” model is a reasonable approach to achieve higher total returns compared to preferreds. This prompts the question about how utilities currently look. I did a quick screen based on yesterday’s (9/6/24) close looking at all of the utilities in my database. To meet the initial screen they had to been paying dividends continuously for the last 5 years. And the dividends had to increase by at least 3% per year, although I allowed one “wart” year for this study where they did NOT grow>3%. I excluded ADR’s aka foreign issues that trade in the US. This gives a list of 55 issues. Four main points:

    1) This is NOT a buy list, you must do more due diligence.
    2) Need to understand why some issues are down up to 66% over the last 5 years. Not supposed to happen with utes.
    3) Many issues have sunk in the last 12 months more than the broad market. Not clear why, but gives a warning that they might fall further, aka do NOT buy today.
    4) High probability of one or more incorrect data points in this study. Caveat emptor. (Gotta use the paid service to get clean data, just kidding!)

    Data is formatted to import into a CSV file and sorted from highest to lowed div yield + 5 year div growth rate.

    Format is:

    Ticker, type of ute, S&P member, market cap in Billion $’s, yield + 5 YR div growth rate, current yield, 5 YR div growth rate, comment

    NRG,Electric,500,16.2,68,2.1,65.9,10X div increase in 2020
    NEP,Electric,None,2.3,29.5,15,14.5,MLP, renewables, down ~50% from 12 month high
    SWX,Nat Gas,MC400,5,19.7,3.6,16.1,
    KEN,Electric,None,1.3,15.5,15.5,0,Strange 2022 dividend, off ~66% from 5 year high
    UGI,Nat Gas,MC400,5.3,13.9,6.3,7.6,Div grew <3% one year
    NEE,Electric,500,165,13.6,2.6,11,
    EVRG,Electric,500,13.9,12.4,4.3,8.1,
    CPK,Nat Gas,SC600,2.7,12.3,2.2,10.1,
    AWR,Water,SC600,3,11.6,2.3,9.3,
    AWK,Water,500,28.2,11.4,2.1,9.3,
    ATO,Nat Gas,500,20.4,11.3,2.5,8.8,
    FTS,Electric,None,30.3,11.1,5.3,5.8,
    OGS,Nat Gas,MC400,4,11,3.8,7.2,
    WEC,Electric,500,29.9,10.7,3.6,7.1,
    CWEN.A,Electric,SC600,5.5,10.6,6.5,4.1,
    TXNM,Electric,MC400,3.8,10.6,3.8,6.8,
    WTRG,Water,MC400,10.7,10.4,3.4,7,
    ES,Electric,500,24,10.2,4.2,6,
    XEL,Electric,500,35.4,9.9,3.5,6.4,
    POR,Electric,MC400,5,9.8,4.2,5.6,
    BKH,Electric,MC400,4.2,9.7,4.4,5.3,
    SR,Nat Gas,MC400,3.8,9.7,4.6,5.1,Div grew <3% one year
    AEE,Electric,500,22.3,9.6,3.2,6.4,
    LNT,Electric,500,15.1,9.5,3.3,6.2,
    CMS,Electric,500,20.4,9.4,3,6.4,
    AEP,Electric,500,54.9,9.3,3.4,5.9,
    AES,Electric,500,12,9.3,4.3,5,Down ~ 28% from 12 month high
    RGCO,Nat Gas,None,0.2,9.3,4.1,5.2,Div grew <3% one year
    AVA,Electric,SC600,3.1,9.2,4.9,4.3,
    IDA,Electric,MC400,5.6,9.1,3.2,5.9,
    SRE,Electric,500,52.6,9.1,3,6.1,
    SJW,Water,SC600,1.9,9,2.7,6.3,
    CWT,Water,SC600,3.2,8.9,2.1,6.8,
    MSEX,Water,SC600,1.1,8.8,2.1,6.7,
    NI,Nat Gas,500,15,8.3,3.2,5.1,
    PEG,Electric,500,40.3,7.8,3,4.8,
    AQN,Electric,None,5.5,7.6,6.9,0.7,Down ~ 28% from 12 month high, Div grew <3% one year
    EIX,Electric,500,33.8,7.6,3.6,4,
    ETR,Electric,500,26.2,7.6,3.7,3.9,Div grew <3% one year
    MGEE,Electric,SC600,3.2,6.9,2.1,4.8,
    ARTNA,Water,None,0.4,6.7,3.2,3.5,Down ~ 24% from 12 month high, Div grew <3% one year
    SO,Electric,500,97.9,6.5,3.3,3.2,Div grew <3% one year
    YORW,Water,None,0.6,6.2,2.2,4,
    TA,Electric,None,3.6,5.1,2.7,2.4,
    NJR,Nat Gas,MC400,4.6,5,3.6,1.4,Div grew <3% one year
    BIPC,Nat Gas,None,5.4,4.1,4.1,0,Div grew <3% one year
    TAC,Electric,None,2.7,3.9,2,1.9,
    OTTR,Electric,SC600,3.3,2,2.4,-0.4,Down ~ 23% from 12 month high, Div grew <3% one year
    VST,Electric,500,26.1,1.2,1.2,0,Down ~ 31% from 12 month high

    Reply

    1. Tex-
      Great post! Again!
      I turned your data into an Excel spreadsheet and looked at this one:
      EVRG S&P 500, CY 4.3%, 5y DGR 8.1%, sum 12.4%
      The CY is still nice. Price has trended up off the Oct 2023 low.

      Reply

  10. CMSD is selling above CMSC but with 18 cents less accrued dividends. (I’m long CMSC in an oversized position.)

    Reply

    1. Immense duration. Better senior bonds my more seniority and shorter maturity. 4.7% March 2043 is offered at 93.34 for a ytm of 5.3%.

      Reply

      1. Without disputing that, my point was that if you hold CMSD, you could sell those shares, buy a very similar product (CMSC), and effectively make an 18 cent per share profit.

        Reply

  12. Guys, does anyone know what is going on inside BPY?

    BPY related prefs sit still at pretty good valuations with current yields around 10%..while other RE prefs are going bananas… ERG, BNH, BNJ

    Reply

    1. BNH and BNJ for the longest time were way underpriced. I was pounding the table on those at near 8% yields not too long ago. Those are solid investment grade debentures backed by BN and rated Baa2. BPY perpetuals are rated in the junkier range, not backed by BN, and are marked as such.

      I think what we are seeing here is all and any low hanging better quality fruit with higher yield getting scooped up the last two-three days. There are a bunch of others as well, some reinsurance perpetuals etc. that all have seen big 5% pops just in less than the past week.

      Reply

      1. just an FYI.
        BNH and BNJ are not equivalent. One is treated as debt, the other is treated as equity.

        Reply

    2. good comment… eccv/sjnk pair has seen eccv outperform since october 2022…on 1yr horizon it went from 2 sigma rich on 8/5 to near 3 sigma cheap on 8/23 …currently near 1.5 sigma cheap

      Reply

      1. They’re all about the same. Price movement can make some of them a small amount better than others but not much their variance is small. I gave up trading between them because there wasn’t enough movement.

        Reply

  15. Noticed recent that LXP-C has caught a lot of bidding. I’ve been in this since late 2022 and added as recently as this June with basis at low $45s (about 7.2% YOC)…now pushing $50. It’s busted so likely no call. Wonder if she tries for 55-60 again? I can’t find any news to cause the sudden run-up.

    Reply

  16. US 2Yr/10Yr Spread Today…

    At 10:25 EST, the spread went positive after a couple of years of inversion…let’s see if it will finish that way after the close 🙂

    Reply

    1. I can’t figure out how to start a new thread…..no link at bottom of page.

      anyway. MTB-J. M&T website notes common div ok from board. No mention of MTB J. I called their investor dept phone, twice, leaving message.. No return call. Anybody heard/seen info?

      Reply

  17. JOLTS Job Openings:

    * (-237K) – Greater than expected job opening losses
    * (7.67M) – Lowest # of job openings since Jan 21
    * JOLT job openings trending down for last 2 years…
    Mar 22 (12.2M), Jul 22 ( 11.5M), Oct 22 (10.5M), Jan 23 (10.4M), Apr 23 (9.9M), Jul 23 (8.8M), Oct 23 (8.69M), Jan 24 (8.75M), Apr 24 (7.92M), Jul 24 ( 7.67M)
    * Employers now back in driver’s seat for # employee hires & wages
    * Suspect Powell & friends will shift their focus to JOBS moreso than INFLATION for the remainder of 2024 & 2025.

    Reply

  18. Top 10 MMFs Yields…

    1. VMRXX – 5.26%
    2. VMFXX – 5.25%
    3. VUSXX – 5.25%
    4. GABXX – 5.19%
    5. IDSXX – 5.16%
    6. FZDXX – 5.16%
    7. SWVXX – 5.12%
    8. DTGXX – 5.11%
    9. TSCXX – 5.06%
    10. PRTXX – 5.04%

    Reply

    1. I’m holding ANG/PRB at Schwab – not being borrowed. I would be happy if it was being borrowed from me at 36.5%. I’m no expert on shorting (or even long investing), but seems odd to borrow a reset preferred yielding 6.7%. Let us know if you find out something!

      Reply

    2. How does that work? I hold ANG/PRB in my Fidelity account and it has never been borrowed. Do you have to allow the borrowing? And were you paid 36.5% of the value for the period of the borrowing? Thank you.

      Reply

      1. You do have to allow it; was simple to set up, although I can’t recall just how–I clicked on link Fid kept sending me
        Interestingly, my ANG-B hasn’t been borrowed, altho various other stocks have. No idea how they prioritize it.

        Reply

    3. Most of ANG/PRB that was borrowed has already been returned, so it must have been some short term thing which is too bad because 36.5% was a nice return.

      Reply

    4. Not a trade I’d be making, but possible that someone would short betting that Brookfield delists. Would likely get some indication of that as A nears reset.

      Reply

  20. PCG.PRA was down over 5% yesterday. Has anyone seen any news that could explain that price decline?

    Reply

    1. Nimzo-
      I sold my PCG-A the day before. Could be profit taking. The other PCG preferreds didn’t drop. The common looks fine.

      Reply

      2. good comment..pcg.pra/pff pair went from 1 sigma rich in late august to near 1.5 sigma cheap on 8.30..currently near 1 sigma cheap

        Reply

    2. this looks like some portfolio balancing of a big fund like PFF
      the volume was 12 times normal ;4300 vs 51000.
      and many of these Preferred funds that follow an index rebalance at the end of the month..

      Reply

  21. MHLA Maiden bonds had crazy volume today. Over 70k vs. 5k. Went ex-div today. End of month shenanigans or justified by news?

    Reply

  22. ARGH !
    BANK OF AMERICA, 5.25%25
    **CALLED**
    @100 EFF: 09/13/2024
    CUSIP 06051V6E1
    Quantity called 20,000.00000
    Call date September 13, 2024

    Reply

    1. Very nice, and the large bank preferreds are going up and up. Picked up several at $16, $17 and they are making their way to par.

      Reply

    2. BofA CD, not to be confused with a BofA bond or preferred…. just a newly lowered rate notch on the called CDs gun handle

      Reply

      1. Yes, CD’s are no longer the great parking place option for cash, it was fun while it lasted though. Utilities are now looking like a fairly safe albeit lower dividend option though. Been adding to my UTG, SCE-N, SR-A & DNP positions with some of the called CD money.

        Reply

    3. Have a couple more calls to add:
      Bond: Bank of America 6%, 06055JCD9
      Call date 9/1/24

      and

      CD: Bank of America 5.25%, 06051XBH4
      Call date 9/15/24

      Reply

    4. Yeah, I have a 5.50% JPM CD with March maturity callable in November – Near certainty they call it then…bummer.

      Reply

  23. ECCV is on sale. I just added another bit at 22.68. Compare to ECCF: both mature 1/31/2029. The Internal Rate of Return for ECCV is 8.13% (assuming 22.68 purchase price) and the IRR for ECCF is 7.95% (assuming 25.04 purchase price). Here’s the kicker: ECCV is senior to ECCF in the debt stack.

    DYODD

    Reply

      1. I think you have to do some jiggery-pokery to get the bond yield calculator to give you an accurate result. In particular, you need to account for the fact that the ex-div date has already passed for ECCF’s 8/31/24 payment, so you won’t receive it if you buy today.

        One of my strategies has been to watch the ECCV/ECCF pair and buy ECCV when its IRR jumps above that of ECCF. That has worked out pretty well so far.

        I’m not willing to give up any yield just to get a monthly payer, but that’s just my preference.

        Reply

      2. Better than what, Gary? 7.95% YTM looks right to me {note there is no accrued} but I only get 7.99% YTM on ECCV (taking accrued into account)

        Reply

          1. Thanks MB I wasn’t aware ECC has an ATM program for the preferred. I am ok when a company has the program for common shares as it saves time and money when trying to raise money. but having it for issuing more term preferred bothers me a little.
            I borrow money and invest it hoping to make more to pay off what I borrowed and a little extra for my efforts and promise that at a set date to return the money yet I keep increasing borrowing and what I have to pay off at that set date also has increased.
            ECC has always been good at calling preferred notes and BB early but still need to keep an eye on these investments. Seeing they have been using Riley as their sales agent makes it all the more interesting when you’re trying to sell securities with an agent who is having troubles themselves.

            Reply

  24. PPL Capital Junior Sub note maturing 2067, CUSIP: 69352PAC7
    Floating 3 month SOFR + .261261+2.665
    Current yield= 8.261

    Off 3 and change today @ ~ 97.00

    We own it in one account.

    Reply

  25. US 2yr/10yr Spread — now only (-0.03), we may finally cross into positive territory and undo the inverted yield curve which began way back on 7/3/22.

    Reply

    1. newbie–I wonder if that means short term rates move down and longer rates stay flat?

      Reply

      1. Whidbey Islander — maybe all rates across the board float down with the 2yr dropping a bit faster than longer rates with impending Fed cuts coming down the pipe.

        Reply

          1. Westie 18 — continued decrease in inflation, sluggish economic growth, & greater unemployment may lower rates on long term end of curve, while a faster drop in rates on shorter end of the curve courtesy of imminent
            FED rate cuts. Wish I had a crystal ball to know for sure.
            🙂

            Reply

            1. Newbie
              All good thoughts…
              But…..
              If there is stagflation, that stops GDP growth, reduces tax receipts and encourages our gov’t (currently running a deficit 5-7% of GDP) to want to “help out” by increasing spending.
              And….
              Falling US interest rates decreases the exchange value of the $, encouraging foreign investors to sell US assets as their relative returns fall.
              And..
              Are there any signs anywhere that the US intends to take any meaningful effort to reduce its deficit spending?

              Won’t the above put pressure on the ability to sell long-term US gov’t debt?
              i.e.
              Causing long rates not to decline, but possibly increase?

              Reply

              2. What an archaic idea. You mean to tell me supply and demand can actually impact price even when it comes to the Treasury market? Don’t tell any politician anywhere – they’ll laugh you out of the room.. Pshaw……couldn’t be….. lol

                Reply

  26. Not sure if anyone posted this yet

    Realty Income Announces Full Redemption of its Series A Preferred Stock on 9/30/24

    Reply

  28. https://seekingalpha.com/pr/19830584-realty-income-announces-full-redemption-of-series-preferred-stock#hasComeFromMpArticle=false

    O / PR to be redeemed

    The shares will be redeemed at $25.00 per share, plus accrued and unpaid dividends to September 30, 2024 in an amount equal to approximately $0.3750 per share, for a total payment of approximately $25.375 per share. The final dividend payment date will be September 30, 2024, with a record date of September 13, 2024.

    Reply

      1. Timing! I grabbed some of these O perpetuals awhile back at $24 handle and never circled around to fill it out. Based on some of the DD posted in this space, it looked a bit frightening. The common stock now appears to have been a massive opportunity in $48s. All you could eat there with a 7% yield.

        Well if pig can get back into EP-C @ $48 handle, that aggregate YTM still appears to be 6.11%. Not too shabby for a shorter fixed duration.

        Reply

        1. I think EP-C is closer to 6.3% YTM at $48.10 (current ask) if you strip out the accrued interest.

          Reply

        1. KTH is another one you might want to look at. I’m seeing an ask of $28.40. I calculate a stripped YTM of around 6.5% at that price.

          Reply

          1. Dick, that’s a big Grid holding and I got the idea from him (still long). Grid, Grid are you out there?? No judgement and no limits… You are missed and admired ⭐️

            Reply

  29. I believe PSB has defaulted on their mortgage based on the below tweet which seems to be describing the CMBS loan PSB took out when Blackstone acquired them and levered them up massively.

    Hopefully no one still owns the PSB preferreds:

    $2.18 billion mortgage loan — massive office/industrial portfolio failed to pay off at its maturity this month. Includes an additional $1.96 billion of additional debt for a total debt package of $4.69 billion.

    This SBLL loan is backed by 138 properties defaulted after failing to payoff at maturity today.

    Property Types: Industrial and Office/Flex
    Number of Properties: 138
    Size: 16.4 million square feet
    Property States: CA, FL, VA, TX, MD, WA

    Deal Type: SBLL
    Original Mortgage Balance: $2.73B
    Current Mortgage Loan Balance: $2.18B ($133/SF)
    Additional Total New Debt (non-collateral): $1.96B ($119/SF)
    Total DEBT: $4.69B

    Acquisition Basis: $7.58B
    Payment Status: Performing Matured
    Rate Cap Expiration Date: 8/15/2024

    DSCR: 0.76x
    NOI: Down 15% from Underwritten

    Maturity Date: Aug 2024
    UW Valuation (Jun 2022): $4.2B ($256/SF)
    UW DSCR assuming SOFR was 2.50%: 1.10x
    Source: CRED iQ
    https://x.com/cred_iq/status/1828476391026749465?s=46&t=aoFyMYmhrkRgTu7LU5zKlw

    Description of PSB loan:
    https://www.fitchratings.com/research/structured-finance/bx-trust-2022-psb-us-cmbs-02-08-2022

    Reply

    1. Landlord Investor – I was tempted to pick up some of the old PSB preferreds when the company was taken private, until I looked at their financial statements. They filed for a short period of time with the SEC and they pretty much financed the whole transaction with debt. The original company had a great management team and they basically operated debt-free (except for the occasional use of their Line of Credit). Not sure of the current price level of the preferreds, but they may not have much value.

      Reply

    2. That’s a leveraged buyout gone bad; there will be many more, just this one is massive.
      Crisis = Opportunity

      Reply

      1. Ab, lead underwriters of this massive 2.73B loan were BOA, CITI, Barclays and MS 2yrs ago.
        Berkshire has been selling their holdings in BOA past 6 months. Anything like this is going to have a trickle down effect.

        Reply

    3. Thanks for your post. Aren’t these still traded under PSXBP, PSBYP, and PSBZP? The price has yet to tank even with this news. Anyone know why this might be?

      Reply

        1. Thanks CharlesM. Agreed on fallout from PE leveraged deals. My comment regarding the price relates to why has it yet to further nosedive from the $13 level? The tweet came out around noon yesterday. There have been several trades since.

          Reply

          1. People unaware, delisted stocks on the pink sheets are hard to buy and sell, who knows.
            Time flies when you’re having fun. Didn’t realize it’s been 2 yrs since BX took PSB private.
            This is a risk you take on these. I hold a few BB’s from take private deals, no preferred.

            Reply

  30. SWKHL 9.0% senior BB 2027 callable
    last 25.52, ex-div 9/14 for 56 cents

    WHFCL 7.875% senior BB 2028, call 9/15/25
    last 25.46, ex-div 8/31 for 49 cents

    Reply

      1. Nathan-
        When I bought SWKHL in Dec 2023, I was new to III and didn’t see that discussion…LOL. Since then price has hovered around par and the common hasn’t blown up. Another 2-1/2 years is starting to sound like a long time.

        Reply

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