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I have to report today ; sold 5 of the 100 May WHR puts at 3.50
down over $2k ; lets see if we get some recovery ; i’ve got 30 days left!
GasLog Ltd. Announces Full Redemption of Remaining Outstanding Series A Preference Shares and Intent to Voluntarily Delist and Deregister
Hamilton, Bermuda, April 26, 2024 — GasLog Ltd. (“GasLog” or “Company”) (NYSE: GLOG.PRA) today announced that the Company will redeem all of its remaining outstanding 8.75% Series A Cumulative Redeemable Perpetual Preference Shares (the “Series A Preference Shares”, and the redemption thereof, the “Redemption”) held by shareholders (the “Holders”), pursuant to that certain Certificate of Designations, dated as of March 30, 2015 (the “Certificate of Designations”). The Company expects the redemption date for the Series A Preference Shares to occur on May 28, 2024 (the “Redemption Date”). The redemption price of the Series A Preference Shares will be $25.00 per share plus accrued and unpaid dividends in respect of the Series A Preference Shares up to, but not including, the Redemption Date (the “Redemption Price”). As of the date of this press release, there were 200,000 Series A Preference Shares outstanding.
Upon the Redemption, no Series A Preference Shares will remain outstanding, and all rights with respect to such stock will cease and terminate other than the right to receive payment of the Redemption Price. The information contained in this Press Release does not constitute a notice of redemption.
Maybe GLOP-C before long?
Mr. Market thinks A, B & C will go. Looking at the FtF table, pretty much everything redeemable with current coupon higher than the underlying company’s cost of debt is priced to be called ($25 + accrued).
This is NOT a K-1 producer????????
2024 Mortgage Rates Hit YTD Highs…(Mortgage News Daily)
* 30yr Jumbo…7.68%
* 7/6 SOFR ARM…7.55%
* 30yr Fixed…7.52%
* 30yr VA…7.03%
* 30yr FHA…7.00%
* 15yr Fixed…6.91%
US Treasury Rates Today…(current / intraday high)…UP
3m ~ 5.412% / 5.5%
6m ~ 5.395% / 5.403%
2y ~ 4.993% / 5.027%
10y ~ 4.702% / 4.739%
Good chart buying the 2year and the 6 months. I don’t need stocks that go up 75 and down 80 the next day. Traders market not for me. Market has no memory.
Red Day Start For Preferred ETFs & Preferred Indices (10:20 CST)
PSK (-1.33%)
PGF (-1.32%)
PGX (-1.30%)
PFXF (-1.19%)
PFF (-1.12%)
PFFD (-1.11%)
PFFA (-0.78%)
FPE (-0.51%)
PFFR (-0.26%)
—————
SPPHQUP (-1.19%)
SPPREF (-1.01%)
Riv A bot at 23.07
Rxr B ” ” 20.98
decent yields on these
RIV.PRA/PFF pair has traded in a range for the last year.. currently trading 1 sigma cheap..
I could not find RXR.PRB
My bad
rexr b – Rexford Ind Realty
https://innovativeincomeinvestor.com/security/rexford-industrial-5-875-series-b-cumulative-redeemable-preferred-stock/
i bot REXR/PRB as the REXR.PRB/PFF PAIR has gone from near 3 sigma rich in may 2023 to near 2.5 sigma cheap today ((3yr horizon)… I paid 20.95 (20.79 stripped) for about a 7.07 current yield.. below is excerpt from S/A author Trapping Value regarding the preferreds
Rexford Industrial Realty, Inc. 5.625% CUM PFD C (NYSE:REXR.PR.C) & Rexford Industrial Realty, Inc. 5.875% PFD SER B (NYSE:REXR.PR.B)
While we have not been fans of the common shares, the REXR balance sheet is about as close to “fortress” as it gets. We have seen that term thrown around pretty loosely and even attributed to REITs like Ventas (VTR) which are now carrying 7X debt to EBITDA levels. But this is what a real fortress looks like.
–
REXR Presentation Q4-2023
The preferred shares have been excellent investments if you can get them at the right price. We picked up REXR.PR.C on October 6, 2023, when it was at $19.83 and then sold out in December near $22.00. At present they are sort of middling with 6.5% yields. We would get interested again if we saw them yield over 7%.
tks for the show
HWM.PR – does anyone have any ideas on the recent prices dropping? Lots of buys/outperform ratings out there. The yield is getting better and better…
It went all the way up 68 ish back in March. ..which was probably too high.
I sold some near the top but still have a half position and am watching v closely for a re entry point.
Its an odd cat this HWM. PR. Price movements are very jerky and dont always make sense. But it seems to be a solid payer.
The bots can be your friend or your enemy. I was able to force the bot into that last low sell yesterday. I have actually made a little money on this issue past few weeks despite playing into a general price decline. I havent really done a lot in fixed perps lately other than group rotation of a company I own and this issue. Only keep 300-400 shares recently on it, and dont plan on buying more. Unless I can work the bots over again. Overall still waiting for better absolute and relative values in the fixed perp market.
For the folks here in Rio Vista, what is a bot? I’ve seen this term used in place of ‘bought’ but I don’t think that is what your referring to…or is it?
I reference “bots” as being computer programs with their high speed intercept mechanisms that intercepts market order trades. In other words they butt in line to steal trades at the last second. Its enjoyable when you can occassionally turn the tables on them.
https://en.wikipedia.org/wiki/Internet_bot
Grid, and here I was made to believe that bots are people that upset other people by saying things they disagree with, 😀
You’re talking about those automated trading programs the institutions use, got it. For some reason I’ve always called them algos (short for algorithms), but bots works just as well.
I tend to create my own words. When I suggest a restaurant to my lady I generally wind up having to describe the location, because I confuse her by giving it a “new name”. I can never remember their names…Crooked Tree,, Crooked Tavern, Twisted Tree…..Whatever it is….
Grid ; interesting ; how do you spot a BOT ? do BOTS put in real bid and asks ?
Its more art than science with a “feel” of whats going on. For example yesterday after a few small trades the issue went quiet and bid ask spread separated wide to $55/$57. I put a lead bid out 10 cents higher and let it sit for an hour. Then I removed it to make sure there wasnt a bot taking the place of my bid it was about to intercept. So a few minutes before close, I set a low ask of $55.65 and immediately fired a market buy at it. My market buy order was “magically” intercepted at $55.37 if memory serves or so, and then I immediately cancelled my ask before it could get bought and market closed. You cant do more than 100 shares at a time and over time as the bot “learns” and wont chase, so you cant milk it. This really only works with illiquid NYSE issues. HL-B has been a good one. Typically if it goes dead (unlike today it was active) with a wide bid spread you can fire 100 lots and split the middle. Last couple times I bought on general spills then waited a few days until it dried up and was showing like $51 bid $55 ask with last trade say $52 yesterday. Fired the market sell order in and sold at $53 and $54 and booked quick $2-$3 a share profit. This doesnt happen daily, you have to pick the spots. For me maybe a 3-4 times a year on some issues I occasionally get. I wouldnt recommend doing it unless you get a feel on whats going on. Because you might or even very likely get a bad trade either buying or selling just doing it to see what happens.
A few comments about “bots:”
1) Most investors, not including III’ers, do NOT understand how their orders get “routed.” The vast majority of retail oriented brokerages do NOT send your order directly to one of the “exchanges” like the NYSE or NASDAQ, being the two most famous. Your order gets sent to an “internalizer” like Citadel or Virtu. The internalizers literally pay the brokerages so that they will get all of the orders. The internalizers typically pay a fraction of a cent per share traded back to the brokerages.
2) This gives the internalizer first chance on what to do with your order. They have sophisticated, automated algorithms that decide if they want to take the other side of your order. If you are buying, they might be selling. The internalizer orders never show up as bids/asks you will see. They are not placed until your order is placed, but they still get first chance to take the other side. Their algorithm is ultra-secret, but it concludes it has >50% chance of being able to flip the shares for a profit, even if it is less than one cent per share.
3) Separate from the internalizers, many traders, both professional and amateur, use “hidden” orders. When you see an issue quoted with a bid ask of say 24.00/24.25, you should assume there are both bids and asks that are active between that spread. Maybe the actual bid/ask is 24.05/24.20, but you will not know that until you place an order that executes against the tighter range.
4) BOTTOM LINE is for thinly traded preferreds/baby bonds with “wide” bid ask spreads, there MIGHT be an opportunity to “beat the market” buying below the “inside” ask or selling above the “inside” bid. It is unknowable until you try it. Lot’s more details, but these are the highlights to help understand what prices your orders get filled at.
Yes, Tex, they are legally crooked so I love beating them at their game. Friday, I beat them again on it. Whats interesting is another example, one trying to walk down an ask to sell. No offers, then pull the ask, and instead fire a market sell order at it. And immediately gain a 50 cent plus price improvement on transaction.
Hidden bids and frontrunners are the reason you often get price improvement on limit orders at the published price. You could try walking the limit price up gradually but I haven’t noticed that to offer much advantage over price improvement. Sometimes my new limit order at the Ask gets filled at my most recent bid price at a lower number. Maybe my last bid affected the hidden action?
All of the buy and sell tactics to gain pricing on bots only works for me on exchanges. OTC in my brokerage accounts doesn’t allow market order sells or buys so I cant typically gain any immediate advantage. And since 90% of my buys are OTC, I have to play more the long game in buying and or selling. And of course situational rotations out of like issues.
Hi,
Not on topic, but I saw you wrote a review for preferred stock trader on seeking alpha.. do you need to be present daily to take advantage of his trades?.. do you use the option portion of their service?..
THANKS
Its a great service I believe, but I dont follow a lot of trades mostly because I am now just trading in a few ute preferreds and have a large amount in CDs. PST has done great this year, no question. And he gives model portfolios and such. They will send notice and weekly trade ideas and such to you. There is a lot of options stuff, but I have never partaken in any of that and dont have any plans to ever learn it or use it. Its not an interest of mine. In fact Im just not interested in much but a narrow band for now anyways. Not that I have any fear or end of world market crashing. Im just bored and taking a year long sabbatical and playing only in a tiny sandbox when I am amused enough to play.
Been focusing more on golf and sports betting. Up $15k since January and its going higher after Rangers, Hurricanes, and or Oilers clean up their respective series’s…..Hopefully!
I owned when it was the old $3.75 Alcoa preferred. Still do.
HWM seems like a good company. The preferred has wild swings and only rated B+.I think it’s under $60 now, market is nuts so this one seems normal.
King, times have changed and companies change. Howmet preferred is now BB+, through recent credit upgrades its senior unsecured debt is BBB. The preferred as you know was an old Alcoa, that was passed onto Arconic and then quickly onto Howmet after separating from Arconic.
could not find HWM.PRB
mjtroll-
Try HWM.PR, HWM.P or HWM-
Meltup in everything RILY today, due to the outside report saying they are clean regarding the short seller allegations. No opinion as to whether RILY OR the shorts are correct, but clearly the market believed RILY, at least for one day.
RILY, Com, 36.97%
RILYL, Pref, 10.88%
RILYP, Pref, 9.8%
RILYG, Baby, 12.82%
RILYK, Baby, 13.52%
RILYM, Baby, 3.3%, matures 2/28/25
RILYN, Baby, 13.19%
RILYO, Baby, 0.09%, matures 5/31/24
RILYT, Baby, 17.19%
RILYZ, Baby, 17.17%
First RILY, and ADM, and now DJT; good expensive options to have sold, and to sell.
MFAO is now trading
Thanks edward for the info.
Slightly better than MFAN at currentplricingt but not enough oti buy over par. I’ll stick with MFA-B, better rate and more upside in exchange for no redempion date. Overrated factor in todays high rate envrronment;.
B. Riley Financial Files 2023 Annual Report on Form 10-K
https://www.sec.gov/ix?doc=/Archives/edgar/data/1464790/000121390024035532/ea0204428-8k_briley.htm
B. Riley shares jump as much as 59% after 10k filing
It looks as though it’s not as much the 10k filing but this report on RILY that’s moving the market https://finance.yahoo.com/news/b-riley-stock-surges-filing-114833355.html
Thanks J
Just a reminder that interest rates are not universal globally….
https://www.sec.gov/Archives/edgar/data/1067983/000119312524104562/d676117d424b5.htm
GEO Group 36162JAC0 called effective 4/29/24 at 102. I was hoping for four more years.
They refinanced with a private offering pushing out maturities another 3-4 years.
Still a good outcome if you remember how most of us got these 2028 10.5% secured bonds in the first place. Very profitable going from the distressed unsecured 2024 bonds to this issue.
anybody that wants out of CTGSP providing liquidity until July.
mica, what is this you speak of?
USBpH 5.56% pfd is now trading at 20 ; current yield 7.8% for this BBB issue
the others in the series Q,R,S are yielding 5.78% imho a serious mispricing
but this is a floater since 2011 ; LIBOR +.60
might not be attractive when interest rate drop;
Ted, you will tend to find this throughout the issues. The market is going to make you pay up for the security of the “fixed income”. And giving you a near term anyways yield bonus for taking on the risk of Fed dropping the short end.
Grid ; i am aware that what you say – the rest of the series are straight preferred; no float ; but I do anticipate some contraction on the spread between the two;
Very well could happen. And its also possible it narrows the opposite way, being the fixed issue and its atrocious 5.78% fixed drops in price narrowing spread that way instead.
Grid:
I tend to stay away from these floaters with these truly minimal bumps over SOFR. In USB+H, you get 86.1 basis points (60 bps +.261 bps) over 3-month term SOFR.
I was checking my older notes on this security and here is what a poster on this site wrote back on 2/10/21:
“I’m thinking floating preferreds like US Bancorp’s usb-h are a fairly safe place to stash cash. They can be bought close to par, pay about 4% at today’s rock bottom interest rates, and will float up with any rate increases. Wondering what others think.”
Way back on 2/10/21 USB+H was trading near $24. Three+ years later and after 500+ basis points in short term rate increases by the Fed, USB+H trades near $20.
A good lesson in staying away from these types of floaters.
Kid, we here are all self service investors and have our own personal tastes. But I personally dont like rolling low libors inside my papers. I dont like the yield being so dependent on the Fed. And as you mentioned, their price movements reflect the difference of it.
Here’s my unrealized gains at the moment on some of my holdings that have similar structures to USB-H:
BML-J – 8.36%
MET-A – 5%
MS-A – 7.4%
TFC-I – 15.2%
USB-A – 16.75%
(Dividends received are not reflected in these percentages)
Entry point matters a lot. One should study the historical trading patterns of these issues. It’s not as simple as these are good or bad.
I dont disagree with what you said at all Dick. Its just like fixed perpetuals. Knowing when to be in and out and what will impact them either way. Its just one battle Im not interested in engaging with. That is why I mentioned personally for me. But Im just not interested in engaging in a lot this year anyways.
If you measure from early 2021 to now, USB-H actually outperformed some low coupon fixed rate issues.
Rapid rate hikes will affect all of these issues to some degree.
One source does have 3mo Libor @ 5.58801%
The Fed shows 3mo SOFR at 5.31% — how’d you get 7.8% ?
thx
See here.
https://ir.usbank.com/shareholder-information/preferred-stock/default.aspx
.60%+3mo SOFR + spread of .261
Trading at 20 bucks a share, 5 below par, which is why the yield is so high.
The series B trades with the symbol H, oddly enough.
https://www.marketwatch.com/investing/stock/usb.prh
Gary took the last dividend .39 x 4= 1.56/20= 7.80%
since interest rates have not dropped , I based my assumption on 4 similar dividends going forward ; of course this will all change with the first decrease in SOFR rate
Monday Morning MMFs…
* VMRXX ~ 5.28%
* VUSXX ~ 5.28%
* VMFXX ~ 5.27%
* GABXX ~ 5.26%
* DTGXX ~ 5.23%
* SWVXX ~ 5.14%
* IDSXX ~ 5.16%
* TSCXX ~ 5.14%
* FZDXX ~ 5.14%
* PRTXX ~ 5.05%
* SPRXX ~ 5.03%
* SNVXX ~ 5.02%
* PRRXX ~ 5.02%
* SNOXX ~ 5.01%
* SNSXX ~ 5.01%
* SPAXX ~ 4.95%
Schwab CDs Today ~ all are Fixed, Non-Callable, FDIC…
* 3mo ~ 5.458%, 45385JBR8, Independent Bank of McKinney Texas, maturity
* 6mo ~ 5.3%, 17312Q4S5, Citi, maturity
* 1yr ~ 5.15%, 17312Q4V8, Citi, maturity
* 2yr ~ 5%, 17312Q4U0, Citi, semi-annual
* 3yr ~ 4.8%, 61690DPN2, Morgan Stanley Bank, semi-annual
* 10yr ~ 4.5%, 32110YN27, 1st Natl Bank Mi, monthly
US Treasuries…
* 2Yr ~ 4.96%, intraday high 5.019%
* 10Yr ~ 4.62%, intraday high 4.67%
Newly Issued JPM Bond…
* CUSIP ~ 48130CKP9
* Coupon ~ 6%
* Price ~ 100.28
* Senior ~ A-/A1
* Maturity ~ 1/23/34
* Callable ~ 4/23/26
* YTM ~ 5.962%
* YTC ~ 5.847%
Other…
* Express Inc (mall retailer) files for bankruptcy
* Verizon (down 4%)
DYODD…
Newbie-
Thanks for the comprehensive list. The 6% JPM bond with 2-year call caught me by surprise since I never saw it listed on TDA new issues. First settlement tomorrow, so secondary market only. TDA still has the same 5.5% JPM new issue. JPM often establishes the top rates for CDs and bank bonds.
Other 6% new issues at TDA with years to call:
RBC 2y
C 1.5y
Bank of Montreal 2y
BAC 2y
GS 1y
GS 2y
Jeffries 6.5% 1y
DB 6.25% 2y
To me, that’s a huge number of big banks willing to pay 6% for a least 2 years. These banks want your money now. Knowing why would be valuable information. If 2 years is your investment timeframe, right now there’s no reason to accept less than 6%.
AJXA – I’ve only followed this from afar as I kept 25 shares just to see what happens….. Is this actually implying they will be paying this off solely in shares and if so, shares of what?
https://d18rn0p25nwr6d.cloudfront.net/CIK-0001614806/d7fb3959-78eb-486c-9da0-9602a1a2566f.html#tm2412334d1_ex99-1_htm
On April 22, 2024, Great Ajax Corp. (the “Company”) announced that, in advance of the upcoming maturity of its outstanding convertible notes on April 30, 2024, the convertible notes have a final conversion rate of 1.7405 shares of common stock per $25.00 principal amount of notes, which represents a conversion price of approximately $14.36 per share of common stock.
New York – April 22, 2024 –Great Ajax Corp. (NYSE: AJX; the “Company”), a real estate investment trust, in advance of the upcoming maturity of its outstanding convertible notes on April 30, 2024, announced that the convertible notes have a final conversion rate of 1.7405 shares of common stock per $25.00 principal amount of notes, which represents a conversion price of approximately $14.36 per share of common stock.
About Great Ajax Corp.
Great Ajax (NYSE: AJX) is a real estate investment trust that focuses primarily on acquiring, investing in and managing re-performing loans (“RPLs”) and non-performing loans (“NPLs”) secured by single-family residences and commercial properties. In addition to its continued focus on RPLs and NPLs, it also originates and acquires small balance commercial mortgage loans secured by multi-family retail/residential and mixed-use properties. Great Ajax is externally managed by Thetis Asset Management LLC, an affiliated entity. Great Ajax’s mortgage loans and other real estate assets are serviced by Gregory Funding LLC, an affiliated entity.
Great Ajax
Mary Doyle
Chief Financial Officer
(503) 444-4224
mary.doyle@great-ajax.com
I believe they are just stating that you have one last opportunity to convert your notes into shares of common. Not a very appetizing alternative.
2WR, When the merger with Ellington failed, I took that as a sign that whatever they saw when they reviewed the books they didn’t like. I believe AJX buys non- performing or troubled loans and tries to find value in them as well as other investments in real estate. I think if rates continue to stay as high as they have been we will see more trouble in reits like this.
But- AJX common is ~ $3.55 So, they must be using the RITHM cash infusion to make up the difference- as in SteveH’s post just below.
This seems to be the current idea for paying off the AJXA notes:
https://finance.yahoo.com/news/rithm-capital-corp-great-ajax-225600073.html
CME FedWatch Tool ~ probability of future RATE CUTS declining further
May 1…..4%
June 12..16.9%
July 31…44.4%
JPOW is lost in the wilderness. He has no idea what to do.
Tired of the Fed big mouths always giving speeches.
My 2 year treasury now yields more than SPAXX.
Waiting fot the next Master List.
Hmm, I think this means KTH is being delisted from the NYSE?
https://www.businesswire.com/news/home/20240412190236/en/PECO-to-Voluntarily-Delist-Capital-Trust-Receipts-from-NYSE
If so, I don’t think they will go to Expert Market, so long as Exelon continues publishing financials for PECO in their SEC filings?
That would certainly explain the huge seller after hours on 4/12. Is KTH one that throws OID, or is it ok in a taxable account?
Irish, KTH does have OID, or at least it has for me. Several of these do.
Is that as terrible a thing to deal with as people have made it sound, or would it be ok in a taxable?
I just used turbo tax. Not an issue, other than it drops your “real yield”.
well, if it were to go to expert market it would be a beautiful looking candidate for Roth conversion. Has anyone here tried to move expert market holdings to a Roth from a Traditional IRA?
Pig Pile, I have moved a couple to my Roth in Vanguard. I was fearful on the first one that it would have those double digit unpredictable changes in price as it moved at the end of business day, but there was none. I believe the first one was LTSA (now LTSAP) in April 2021, followed shortly by GMLPF. It was a non event with no change on the pricing as they moved.
dj, thanks so much for chiming in. Good to hear it worked good for you. I plan to do CTGSP after my move from TD Ameritrade to Schwab is complete in May. Almost wish Schwab would just zero that pup out, wouldn’t mind paying no tax, lol.
Pig, get them transferred and then see if company will buy them from you. They said in recent past they have given up on tenders as nobody else wants to sell them. I think they offered $12 on final last tender back in ZIRP.
Thanks for the idea Grid. I actually did that very thing within a month of them going dark. No response from the company. Maybe worth a try again?
Contact their IR. Or maybe find their CFO’s email and send it. They really wanted to get rid of them all, or that was at least what they told the state regulators then.
Pig Pile, you can test the waters also by converting a few shares before you do a bunch. Might settle your nerves s little before you go all out! I recall that’s what I did.
This is damn peculiar. Based on what I have read I assumed it was a 3rd part trust created to insert the PECO Capital Trust III bonds inside the trust. Which it is by Structured Products from Smith Barney. In other words a synthetic baby bond. But the presser is coming directly from PECO which implies it is theirs. Most odd.
See KTBA is an exact Structured Product also but it had nothing to do with the delistment and expert market that it is unfairly jettisoned too. The short answer is KTH shouldnt be expert market, but neither should KTBA either. So……. What is more odd is why the hell are they waiting now, less than 4 years before redemption?
I dont own KTH anymore, but I do own some of the actual 7.38% underlying bond that are outside of the trust.
Yeah, the terminology used in this PR doesn’t match up with what was used in the Prospectus back in 1999. And since KTH was solely a creature created by SSB, it’s not really clear to me why Exelon / PECO would have been responsible for maintaining the listing?
The prospectus seems to indicate this was created jointly by PECO and SPC.
The Trust will issue a single class of Certificates, which will represent
interests in the Trust and will be paid only from the assets of the Trust. The assets of the Trust will consist of (i) $27,500,000 7.38% Capital Trust Pass-Through Securities issued by PECO Energy Capital Trust III and all future payments of interest and (ii) a single payment of principal due on the underlying Capital Securities. The sole assets of PECO Energy Capital Trust III are the 7.38% Cumulative Preferred Securities, Series D, issued by PECO Energy Capital, L.P. The sole assets of PECO Energy Capital, L.P. are the 7.38% Subordinated Deferrable Interest Debentures, Series D, due 2028, issued by PECO Energy Company.
What is odd is PECO Capital Trust was just a financing arm of PECO. So it was a trust to begin with. And they actually issued the underlying 7.38% bond into the market as a $1000 issuance. Most odd they would go trust within a trust to issue more yet 3 years later or so. Is what it is I guess.
Grid, With the bonds hitting 105 on Thursday surprised you haven’t flipped them. I still have the Trust II
So PECO/Citi has decided NOT to list on otcmarkets???
“PECO has NOT arranged for the Securities to be listed on another national securities exchange or for quotation of its security in a quotation medium (i.e., the OTC market).”
Yet I notice KTH listed on otcmarkets.
https://www.otcmarkets.com/stock/KTH/profile
https://www.otcmarkets.com/stock/KTH/overview
CorTS Trust for Peco Energy Capital Trust III
388 Greenwich Street
New York, NY 10013
212-723-4070
The address listed is the address for Citibank.
Will KTH continue to be listed on otcmarkets after NYSE delisting or completely unlisted and therefore untradeable??? Seems nebulous and confusing.
Dave, its “priced” on the website, its not listed on OTC. Type in KTN and it will show a price, too but it is NYSE listed. PECO doesnt have to be the one to get it listed on OTC, but some one or entity would have to. And that is assuming the financials are piggy backed for it. Something that wasnt allowed for KTBA for whatever excuse (probably involved $) it was.
If it does become delisted and untradeable this would be the perfect stock for someone worried about their capital dropping. As it could go to $0.00 after a while and then the pain is over. Nothing to worry about, then in 2028 you get a nice capital infusion at maturity. Its not so painful after you get used it. I had one show $0.00 for a year before it got redeemed (Watford if memory serves me). I loved having “nothing” with it so much, I bought me some AIC before it went dark several months ago, and now its worth $0.00 until next March’s maturity. But the interest payments continue accordingly. I havent done the math, but the interest payment yield is helluva of big one off $0.00, ha.
GB, Which brokerage is valuing AIC at 0? Schwab has the price at its last trading. I asked my representative why this is. Will be interesting to hear their reply as Schwab clearly gives a message that I cannot buy or sell.
I think Schwab will keep the price at last trade for a certain period of time (exactly how long, I don’t know), but then they will consider it stale and list the price as “NA”. All the delists I have held there seem to follow this pattern.
TNT, John expressed it the way I have been told by various brokerages. However each will do as they want. Yes, I have 100 shares of it in Schwab and its priced like yours. I have 400 in TD and it finally went $0.00 stale about a month or so ago. It really doesnt matter what they have or havent as its in a lockbox until March 2025 then its redeemed at par. The Watford and MBIN (if memory serves was it) experiences of stale and zero value pricing has made me numb to it. And unlike others I have no regular IRA to do a transfer from to exploit the zero pricing.
I have asked Schwab to explain valuation if I can neither buy or sell. I want to do ROTH conversion. By email I received late today someone didn’t delete the series of internal emails. Interesting reading. We shall see what Schwab informs me soon.
Wanda, as long as you haven’t started withdrawals from your IRA or Roth wait for it to show zero value and move it to your Roth.
Does this really work with the IRS? I would think they would want you to get the security appraised to determine its value, but what do I know?
What a slimy move! They should at least make a tender offer for the shares prior to delisting.
I’m not a lawyer but I hope someone eventually gets sued for all of these delisting of preferred stocks.
Here is the Form 25:
https://www.sec.gov/Archives/edgar/data/925910/000110465924049965/tm2411589d1_25.htm
Good catch. I missed it yesterday because it was filed under PECO Energy Capital, L.P
Whereas the April 12 heads-up was filed under PECO ENERGY COMPANY
And neither was filed under CorTS Trust For PECO Energy Capital Trust III, where the 10-Ks and 8-Ks for KTH are usually filed.
So this was filed yesterday. And KTH is still trading on the Big Board today. Not really sure what’s gonna happen next lol
Here is what investor relations in response to me asking about the delisting of KTH:
“I am following up on your e-mail in regard to the delisting of PECO Energy Capital Trust III from the NYSE.
The securities are still SEC registered and may be traded on the secondary OTC market through broker dealers. Holders should consult their broker or financial adviser regarding any trading activities. The last day of trading on the NYSE will be May 2, 2024. The delisting does not change the terms of the securities. Dividends will continue to be paid as they have been in the past and the maturity date will not change.
Let me know if this covers your questions and also feel free to reach out with any additions questions that you may have.”
So no indication that it will go expert market, just trade on the pink sheets with a Pink Current Status.
The press release from the company said this about OTC:
“PECO has not arranged for the Securities to be listed on another national securities exchange or for quotation of its security in a quotation medium (i.e., the OTC market).”
( https://www.businesswire.com/news/home/20240412190236/en/PECO-to-Voluntarily-Delist-Capital-Trust-Receipts-from-NYSE )
I’m not sure why anyone would expect this to trade OTC but who knows
I’m not sure how precise IR’s language was meant to be. But Expert Market does fall under OTC.
And I still think it could go Expert Market like KTBA. Because KTH is not a a security of PECO, it’s a completely separate trust with its own financials. So it’s not a straightforward matter of piggybacking on PECO financial statements.
Yeah, I’m not sure that I would expect this one to be tradeable after May 2. I’m surprised the price hasn’t fallen more. Everyone going to sell after the upcoming ex-date?
The expert market and “financial reporting” clouds where this thing ultimately trades…or doesnt…But just because the company isnt making any arrangements doesnt preclude it from trading OTC.
Take for example Amerens announcement when they delisted preferreds over 15 years ago. They made no effort either, yet they are on OTC.
Each series of the preferred stock will continue to remain an outstanding obligation and the dividends payable thereon will not be affected by the delisting, but the preferred stock will no longer be traded on the NYSE, and no alternate listing arrangements are being made for the preferred stock. AmerenCILCO and AmerenUE currently anticipate that the last day of trading of the preferred stock referenced above on the NYSE will be approximately December 5, 2007.
https://ameren.mediaroom.com/news-releases?item=404
Stupid question but I’m gonna ask anyway: even with it being delisted it still has to be redeemed in 2028, right? (or no?)
If you dont know it isnt stupid to ask. No nothing has changed in any other way. We are predisposed to see some value of whatever we own in our accounts as a security blanket. But stepping away it doesnt mean anything. You can manually account for it yourself it you want. It basically just becomes a private loan from you to PECO. And there is considerably more private loans out in the world than public ones I bet. After all a bank doesnt freak out giving out a 5 year loan with no ability to get it back before 5 years. And they account for the loan on their balance sheet. One can do that themselves if they feel the need.
I may have shared this story before, way back when………. In my institutional bond trader days, I had a salesman in Atlanta who was constantly asking questions… Not only did he asked questions, he’d ask inappropriate questions that he knew he wasn’t entitled to know the answers to. I remember one day asking about his habit and he taught me a good lesson…. He told me he used the strategy all the time with his own clients and he figured if he only got answers every once in awhile, he’d still be way ahead of the game vs not having asked at all. It’s really a simple lesson but one that most people don’t try. It also reminds me of the old quote attributed to many different soothsayers: “A wise man knows how little he knows….”
I ended up selling my entire position in KTH. It was around a full position for me. Part of it was replaced by TVC as well as actual bonds.
I held it in an account where I might need liquidity before the maturity date and didn’t want to deal with whatever is going to become of this thing.
I am really surprised this hasn’t sold off more. Maybe all you crazy folks are planning to do Roth conversions or something haha.
I sold out last week. Thought about keeping but just moved on. Bought some what I consider to be cheap KIM-N
I mostly bailed out of KTH a couple of years ago (?) above $30 – except that I kept one share just to make it easier to follow, thinking that I might get back in.
I got a bunch of money from redemptions/payouts over the last 10 days, so on my to do list for this week was to put in an order for KTH to try to capture the divi.
Guess I will just sell that lonely share too.
I still might pick some up if it really tanks just before it goes dark, but unless some institutionals hold it and have to sell (or something), I don’t expect that to happen. I am not too worried about PECO making payments.
The Capital Trusts were just created as various financing entities to issue the specific debt sent to market. They have no operating businesses that I am aware of and PECO is the guaranteer of payment. I think only two remain, the Capital Trust III 2028 and Capital Trust IV 2033.
I’m not upset to hold KTH if it goes to expert market, but has anyone gotten a response or tried to get a response as to why PECO seemingly is bearing the brunt of the expense for KTH being listed and, therefore, had the incentive to get it delisted? I think you brought it up, Grid, and I’d tend to agree that on the surface, if you read the original prospectus, you would think that the cost of listing shouldn’t have fallen on PECO originally and therefore, they shouldn’t be saving money by delisting…….
Very odd, especially when you throw in the fact they waited until less than 4 years to maturity after listing for over 25 years. The “few owners” excuse doesnt really hold much water as its always been this way. Plus nowadays any shareholders from say Vanguard are just counted as one person due to street name obligations anymore. It isnt like thousands are going to hold these in paper stock certificates, lol.
BTW, here is another example besides the Ameren one I had above. A recent one from NGG’s Mohawk Power preferreds delisted a few months ago. NGG made no arrangements either and they trade OTC.
National Grid does not intend to arrange for listing or registration of the Preferred Stock on another exchange or for quotation in a quotation medium.
https://otp.tools.investis.com/clients/uk/national_grid2/rns/regulatory-story.aspx?cid=374&newsid=1741240
But this a capital trust issue may put a wrench in it. My thoughts are this. I already own the 2028 PECO debt but not ones issued inside KTH though. But if there was a big sell off, it wouldnt bother me to put the big boy pants on and hold dark until maturity. But I need a sell off to make it worth my time to do it though.
Grid, you know I had trouble buying the Capital trust III at the prices you bought so I went with the IV and plan on holding until maturity.
GB and others, What brokerages have AIC at zero value? I have asked Schwab to consider zeroing the value. Received a reply from my advisor that the issue has been escalated and should receive an answer within days. Instead of arguing with Schwab it might be easier to move (if possible). I have Fidelity, Vanguard and IBKR.
TIA
E-trade let me transfer AIC from my wife’s IRA to her ROTH IRA ar 0 value about two weeks ago
TNT, I have factually misspoke. I have them in TD also. It doesnt show it as $0.00. It shows it basically as it doesnt exist. The AIC ticker is still showing but in a faded grey color, while the rest of the securities are in bold black color. The bold tickers have the shares, market value, price, etc. The faded gray AIC ticker just has “invalid symbol” next to it and nothing else. I dont know how other brokerages are coding it other than Schwab which still shows the value (last trade value actually). TD is closing up shop here in a couple weeks though.
GLADZ at $25.04 – trading about par with accrued interest here – I get YTC of >8.6% (9/25 if called), or a slightly >8% YTM in 9/28
no credit rating, but this is one of lowest leveraged BDCs out there (well less than 1x currently) with a good track record and low non-accruals as of last quarter
GS K called in full may 17
TECTP was not called for the 5/15 dividend date, so it will pay at least 1 divvy at a floating rate ~12.3%. A seller is there today at $10.30.
Wondering how you know this? I see no news and the call date is still a month or so away..
It’s too late to redeem on the 5/15 dividend date with 30 days notice.
Although I can’t really say with certainty that a dividend will be declared for 8/15
here is a question I have on when a company can Call an issue;
in general ; can the company call an issue at any time after the first call date
with 30 days notice or
or do they have to wait until the next dividend date to call ?
ted,
Once an issue begins floating, the date when the company can call it depends on the specific terms, which are outlined in the prospectus.
Take TECTP and NLY-F.
(1) TECTP: Only on a dividend payment date. Page 16 in the prospectus:
“… we may redeem the Series B preferred stock at our option, at a redemption price equal to $10.00 per share, plus any declared and unpaid dividends (without regard to any undeclared dividends) to, but excluding, the redemption date, (i) in whole or in part, on any Dividend Payment Date on or after May 15, 2024 with not less than 30 days’ and not more than 60 days’ notice prior to the date of redemption specified in the notice, or …”
(2) NLY-F: At any time. Page S-6 in the prospectus.
“. On and after September 30, 2022, we may, at our option, subject to certain procedural requirements, redeem the Series F Preferred Stock, in whole or in part, at any time or from time to time, for cash at a redemption price of $25.00 per share, plus any …”
https://www.sec.gov/Archives/edgar/data/1766526/000114036119008966/s002654x13_424b4.htm#tTO
https://www.sec.gov/Archives/edgar/data/1043219/000119312517236659/d417558d424b5.htm#srom417558_5
MBG – you can take the “when it begins floating” caveat out of the equation can’t you?…….. All prospectuses on fixed or fixed to floating issues define whether or not the issuer can call at any time or only on interest or dividend payment dates…. I think if someone is going out of his way to look for an issue that’s callable only on payment dates, his odds of finding one are better if he looks at the paper of financial issuers such as banks.. And of course, callable at any time usually means callable only with 30 day’s notice but that too is defined in each prospectus and is sometimes longer or shorter than 30 days.
thank everyone for their informed comments ; my take away on this is – just assume any issue , particularly floaters, can be called at any time ;
unless I want to wade thru a Prospectus to try to find it (as much fun as a Root Canal without anesthetic)
Good point about the caveat, 2WR.
With one exception, I agree we can take that out. They can’t redeem their pfd issue until the 1st call date, and that’s almost always the same date it begins floating.
When it becomes callable on a different date than the date it begins floating, then I’d say, “When it becomes callable”, not “When it begins floating”. For example, RJF-B becomes callable on 7/1/24 but begins floating on 7/1/26. Offhand, I don’t of any others.
Only thought about this because of your comment, so thanks 2WR.
What is the floating rate based on now? I know it has been mentioned here, but I can’t recall what the new calculation is.
New ; it’s usually SOFR + a factor ;
so you read on Quantum online ( a must have reference for any preferred stock trader) the float beginning on a certain date will be say LIBOR (sofr) + 630 basis points (6.3%) so the floating rate ( changes every three months) is sofr(4.94 today+ 6.30=11.24% on a 25 par value ;
just google SOFR for current rate; hope this helps ;
( reset preferred are a different animal);
Thanks. I went and looked it up there already. I am kind of hoping it gets called. If interest rates decrease, the price might go well below what I paid and stay there for a while. Thankfully I have a very small number of shares so it won’t be that big of a deal.
New ; the chances of USBpH getting called are slim to none
and Slim was seen riding out of town .
I am talking about TECTP.
ET-E will be redeemed.
From today’s press release.
Energy Transfer LP (“ET”) today announced the quarterly cash distribution of $0.2111 per Series I Preferred Unit (NYSE: ETprI).
The cash distribution for the Series I unitholders will be paid on May 15, 2024 to Series I unitholders of record as of the close of business on May 1, 2024.
In addition, on March 20, 2024, Energy Transfer LP (NYSE: ET) issued a notice to redeem all of its outstanding Series E Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units (the “Units”) on May 15, 2024 at a redemption price per Unit of $25.00. Holders of Units as of May 1, 2024, the record date for quarterly distributions on the Units, will separately receive accrued distributions to, but excluding, May 15, 2024, in an amount of $0.4750 per Unit.
ET still has outstanding 9.59 FTF cusip 29273vah3 (950mil) & FTF 8.58 cusip 29273rba6 (545mil) Both trading below par fwiw
Be careful on these. 29273RBA6 is a bond, the other is not, and issues a K-1.
Is anyone able to find a prospectus for 29273RBA6? I’m having trouble running it down.
I was actually able to find it. I forgot they changed ticker symbols several years ago so that made it harder to find on EDGAR
https://www.sec.gov/Archives/edgar/data/1012569/000119312513431737/d615421d424b3.htm
I’m sure y’all hear this, but sounds like Israel has struck Iran and places in Iraq. Stock futures down 1+ percent and Treasuries are up. Knee-jerk reaction. I’m sure there will be plenty of new info coming in overnight and in the morning. Happy Friday!!
Hopefully hype more than substance. Reports are unconfirmed and leave more questions than answers. Why would Israel only fire a small amount of missles only to central Iran, and why would they not make any statement? It would seem there would be a more widespread offensive with more targets, really murky and not making sense so far. Futures and oil easing a little as I write oil up 3% instead of 4% a half hour ago, and Dow futures have recouped about 170 points, though still down just under 1%. Oil is a major inflation index constituent and the Fed and all central banks will hold rates until inflation, including oil, is kept in check, and the central banks will continue to have an effect in keeping oil in check by reducing oil and all upstream commodity demand via rates. Hope for the best for everyone, Fan
RE: GECCI, 8.5% baby bond
Fidelity is allowing trades on this BB today. current price 24.75 [10 am ET].
The Hawaii Attorney General released the first report on the Lahaina Fire. The key issue for III’ers is whether Hawaii Electric aka Maui Electric is held liable for the fire(s). They have several preferreds and bonds outstanding which potentially might be affected if HE is forced into bankruptcy. Several lawsuits have already been filed against them. The precedent is Pacific Gas and Electric going bankrupt as a result of California fires. In that case, all preferreds and bonds were made whole. Not clear what will happen with HE, but clearly the market views bankruptcy/non-payment as a significant risk.
Not able to provide a link because it causes the whole post to go into the Spam block folder, so you will have the find the 199 page report on your own.
SEAL – A
9% Fixed perpetual now trading PAR!
(Formerly Teekay LNG Partners – LNG. Purchased/taken private for over $6.2B from Stonepeak, announced in late 2021. Preferred shares still trading NYSE.) *Also have B shares that is a floater.
https://www.teekay.com/blog/2021/10/04/stonepeak-to-acquire-teekay-lng-in-a-6-2-billion-transaction/#:~:text=Under%20the%20Merger%20Agreement%2C%20investment,100%20percent%20of%20Teekay%27s%20ownership
good comment.. seal.pra/pff pair has seen seal outperform over last 3 years… recently and it tested 3yr uptrend (2sigma cheap) and held.. it was near 1 sigma rich in october 2023.. I just paid 25..
good article on Seeking Alpha…tks for show
Seapeak: The 8.9% Yielding Preferred Shares Remain Attractive
Apr. 07, 2024 11:40 AM ETSeapeak LLC 9% PFD UT SER A (SEAL.PR.A) Stock, SEAL.PR.B Stock20 Comments
The Investment Doctor profile picture
The Investment Doctor
mjtroll – thanks for that article. I forgot to mention one other thing that actually surprised me. When I pulled up a chart on SEAL-A, it barely flinched below $24 during this past fall high yield melt down where we saw all of the junkier or high coupon preferred sink to $20s and below.
And during the “big one” i.e. October 22 fixed income tank off, SEAL-A held up above $23 which I couldn’t believe. Going back to regular ZIRP timeline, it traded between $26-$27.
I’m just looking for decent high coupon fixed perpetuals right now. I’m honestly under allocated. People (not saying on here) are too bullish and gravitating too hard to floaters. That ship has sailed. When it comes to debt traders, you always have to be forward thinking.
fwiw.. I just donated to the website sponsor and would encourage others to do the same as during my short tenor using it have found it very informative to make actual trades
I donate to Quantam.com. I use it constantly and I know of no other place to
get the information they provide ;
K-1 Issue?
Holders of the Preferred Units will receive specific tax information from the company, including a Schedule K-1 which generally would be expected to provide a single income item equal to the preferred return (see page S-87 of the prospectus for details).
Proto123 – Thanks for pointing this out. I do see that K1 status in the original filing release. I am pasting this update below from 2019 as a 1099 status change and additionally below that a recent link as well from Seakpeak LLC confirming 1099 status.
…..All proposals, including the proposal to allow Teekay LNG to elect to be treated as a corporation, instead of a partnership, for U.S. federal income tax purposes, were approved by unitholders. As a result, effective January 1, 2019, Teekay LNG will be treated as a corporation for U.S. federal income tax purposes and common and preferred unitholders will receive Form 1099s instead of Schedule K-1s relating to distributions taxable as dividends commencing in 2019. …..
https://www.seapeak.com/articles/seapeak-llc-declares-distributions-on-series-a-and-b-preferred-units/#:~:text=Seapeak%27s%20preferred%20unit%20distributions%20are,for%20United%20States%20tax%20purposes.
2024
https://www.seapeak.com/articles/seapeak-llc-declares-distributions-on-series-a-and-b-preferred-units-march-2024/
TRINL redemption 5/17
https://www.sec.gov/Archives/edgar/data/1786108/000121390024033429/ea0203921-01_n23c2.htm
Thanks, so about 16% of the outstanding at about 25.29?
Irish, your numbers look right.
The Company expects to redeem $30,000,000 of the $182,500,000 Notes issued and outstanding on May 17, 2024 (the “Redemption Date”). The redemption price per Note will be $25 plus accrued and unpaid interest thereon from March 15, 2024 to, but not including, the Redemption Date.
Thanks Ken.
he Company intends to use
the net proceeds from the sale of the Depositary Shares to redeem all of its outstanding 6.375% Fixed-to-Floating Rate Non-Cumulative Preferred Stock,
Series K, $25,000 liquidation preference per share (the “Series K Preferred Stock”). The depositary shares, each representing 1/1000th interest in a share
of Series K Preferred Stock, are currently traded on the New York Stock Exchange under the symbol GS PrK.
https://www.goldmansachs.com/investor-relations/financials/8k/2024/8k-04-16-24.pdf
Aha, I guess they needed to get past the earnings announcement yesterday before launching a new preferred to take out GS-K. We will get a few days of accrued dividend at the floating rate which should be around 9.0%
GS-K redemption has been set for May 17
https://www.goldmansachs.com/media-relations/press-releases/2024/announcement-04-16-2024.html
10 year already green out of the gate +6 bps. Technically speaking, the 10 Year chart has been quite bullish as currently trading now just above a previous resistance point. Today and tomorrow will be a big test as it tries to fill this current channel with next major resistance point at 4.778%.
theta-
I’ve been wondering at what yield I’d be willing to buy a 10 year. I think somewhere between 5% and 6%. At 5% I’m pretty sure high quality two-year call bonds at 7% would be available to compete for my attention. I love 7%.
10yr T ~ up a whopping 90bp since Dec 26 low…ready to test 4.7%.
FBRT-E
Well, that was cryptic…
DALLAS, April 16, 2024 /PRNewswire/ — Sunoco LP (NYSE: SUN) (“Sunoco”) today announced a private offering (the “offering”) of senior notes due 2029 in an aggregate principal amount of $750 million (the “2029 notes”) and senior notes due 2032 in an aggregate principal amount of $750 million (the “2032 notes,” and collectively with the 2029 notes, the “notes”). Sunoco intends to use the net proceeds from the offering to (i) repay certain outstanding indebtedness of NuStar Energy L.P., a Delaware limited partnership (“NuStar”), in connection with a pending merger between Sunoco and NuStar (the “NuStar Merger”), (ii) fund the redemption of NuStar’s preferred units in connection with the NuStar Merger and (iii) pay offering fees and expenses. This offering is not contingent on the completion of the NuStar Merger. If (x) the consummation of the NuStar Merger does not occur on or before April 22, 2025 (the “Outside Date”); or (y) prior thereto, Sunoco notifies the trustee in writing that (a) the Agreement and Plan of Merger, dated as of January 22, 2024, among NuStar, Sunoco, and certain of their respective affiliates, has been terminated, (b) Sunoco will not pursue the consummation of the NuStar Merger or (c) Sunoco has determined in its sole discretion that the NuStar Merger cannot or is not reasonably likely to be completed by the Outside Date, the notes will be subject to a special mandatory redemption at a price equal to 100% of the initial issue price of the notes to be redeemed plus accrued and unpaid interest to, but not including, the payment date of such mandatory redemption. The offering of the notes has not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws and, unless so registered, the notes may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. Sunoco plans to offer and sell the notes only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act and to non-U.S. persons in transactions outside the United States pursuant to Regulation S under the Securities Act. This news release is neither an offer to sell nor a solicitation of an offer to buy the notes or any other securities and shall not constitute an offer to sell or a solicitation of an offer to buy, or a sale of, the notes or any other securities in any jurisdiction in which such offer, solicitation or sale is unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.
Read more at: https://www.lelezard.com/en/news-21336202.html
Sunoco has 33 other bonds outstanding with the last few trades occurring on Friday the 12th at about 6-1/2% The ones with 144a restricted haven’t shown trades in the last 2 to 3 yrs on 4-1/2% bonds. I wonder which institutions are holding those low coupons.
So, redeeming 3 preferreds, but not the NSS note ?
Prx action on the NSS seems to be stable.
Gary,
They’ll redeem NSS too.
On page 11 of their Form 424(b)(3), filed April 3rd:
The Surviving Entity intends to effect the Redemptions to redeem the NuStar Preferred Units and NuStar Subordinated Notes following the Effective Time with the proceeds of the Debt Financing.
“NuStar Subordinated Notes” refers to the 7.625% Fixed-to-Floating Rate Subordinated Notes due 2043 issued by NuStar Logistics, L.P. pursuant to the Subordinated Notes Indenture.