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PRIF-H Call
NEW YORK, March 10, 2025 (GLOBE NEWSWIRE) — Priority Income Fund, Inc. (“Priority Income Fund” or the “Fund”) announced today that it will redeem all outstanding shares of its 6.000% Series H Term Preferred Stock Due 2026 (CUSIP: 74274W 798; NYSE: PRIF PRH) (the “Series H Preferred Shares”) at a price of $25 per Series H Preferred Share, plus accrued but unpaid dividends per Series H Preferred Share from March 31, 2025, to but excluding, the Redemption Date (the “Redemption Price”). The redemption date will be April 9, 2025 (the “Redemption Date”).
Thanks. Had just come in from the garage, signed on to my account, saw the big jump and was wondering what was going on. Now, can anyone explain why they called -H (and -G a few months ago), when they could call the higher coupons D,F, and L??
D is not due till 2029
F is a smaller dividend
L is not due to 2028
In other words, PRIF’s goal is to extend maturities as first priority [pun intended], hence H not D, F and L.
I’m aware of that, but still not sure why they’re willing to hold on to the higher coupons, unless they’re worried that they wouldn’t be able to pay off the shorter term lower coupons if they paid off the higher ones early? Shouldn’t that worry holders of the higher/longer terms? Just trying to understand.
(And F isn’t lower rate than H.)
Here’s an oddity. WFC-L normally trades in the same direction as treasuries. Today, with treasuries up and yields down, WFC-L is down with CY up. It’s trading more like a stock than a bond.
Thinking out loud: At some point in a stock market correction with treasuries rising (yields falling, flight to safety), corporates diverge and do the opposite as credit-risk concerns grow.
Was today’s WFC-L “oddity” a sign of the start of the divergence?
Westie’s long-anticipated storm appears to be arriving.
2 yr down 10 bps
Recession predictor
HAMILTON, Bermuda, March 10, 2025 (GLOBE NEWSWIRE) — Enstar Group Limited (“Enstar”) (Nasdaq: ESGR) today announced that it has commenced a cash tender offer (the “Tender Offer”) for any and all of the outstanding 5.750% Fixed-Rate Reset Junior Subordinated Notes due 2040 issued by Enstar’s wholly owned subsidiary, Enstar Finance LLC, that Enstar guarantees on a junior subordinated basis (the “Notes”). The table below sets forth additional information with respect to the Notes and the Tender Offer…
https://investor.enstargroup.com/news-releases/news-release-details/enstar-group-limited-announces-any-and-all-cash-tender-offer-0
Fabrib—I own this issue at $99.67. It’s callable on 9/1/25 (6 months). Then, it is reset at 5 YEAR T plus 5.468%. Any viewpoints/opinions regarding tendering shares or just waiting to see what happens in September? I would love to have Enstar not call the issue, but I guess that is not likely.
Today’s volatility in JAAA – normally very stable – is unsettling
Westie, You want volatility, look at the XYLD Bear mentioned.
Westie, Your comment confuses me. Wondering if you could elaborate? I just don’t see any unusual volatility with JAAA, nor I would say any volatility whatsoever.
pig
As you know, JAAA acts pretty like a MMF.
It pays divs monthly, and accrues interest through its market price – i.e., most days the price is 1/30th increase in the montly div payment.
On ex-date, its price drops back.
Most days, bid/ask stays within 1 cent.
Earlier this month, it lost 4 cents in one day.
Today, look at the daily chart.
Started at $50.66 – dropped to $50.61 – back to $50.65 – now back down to $50.61.
10mm shares traded so far
Maybe due to overall market volatility but greater than what I am used to.
I have used it as my daily cash reserve- given the gyrations I am reducing my holdings.
Further thought……
JAAA is the AAA rated CLO tranche
Probably if there is a major market drop they may be challenged to maintain liquidity given their fairly small (comparatively) underlying asset availability.
That may explain…..
Perhaps similar directional jumps in Bill prices today.
Westie, Thanks for further color. I have JAAA and JBBB also. Don’t look at it alot, just thought I missed something. Always interested to hear other’s view on things. My line of thinking maybe going into that investment was that CLO’s not exactly steady as she flows investment, so some price fluctuation hasn’t really bothered me much. Appreciate your thoughts, I will pay more attention.
Westie-
JAAA is showing a few jaggies lately, but on the ex date it actually rose, then closed at the same as the previous day ! It is now down 6¢ off that high close of 50.69 = .00118 – way less than a %.
JBBB is off 1.07% – not an unusual fluctuation.
But, they should be watched. Seem to be doing pretty well.
WTC oil is off over 17% since the recent 1/14 closing high– so we need more now?
Lottery results for RITMprA fwiw….. 32% of my shares are slotted for 3/28 redemption.
I was just looking at RITM-A as I own a bunch. Per the press release on the RITM website we will get $.274091 accrued interest on the share redeemed. Currently RITM-A is at $25.31. I bought this one in July 2019 and paid right at par for it, so it has been a beneficial one to own. I generally hold most of what I buy for a long time. I have holdings of over a decade now. The thought has crossed my mind to just sell it all and re-invest the money in something equal to or greater than the 7.75%. as I could make a few pennies per share. Looking at Tim’s short term equities spreadsheet, which is where I have shopped mostly recently, I see some that would fit that bill easily. Only problem I already own a bunch of those too! Oh, what to do….. Maybe just let it ride as is?
ritm/a is floating . i think your getting close to 10 percent right now.
so i am going to hold for now or switch to B. i assume they will keep calling the A an funds become available
I forgot it floated back last August! Thanks for reminding my senile mind……..
MFA-C (6.5% cum perp preferred) is just past ex-div with March 31 call/float to 3mL + 5.345% coming soon. Last at 24.52 indicates traders are not expecting a call. At 24.52 the CY after the call date would be about 10%. MFA is an mREIT.
you can get 8.7 to 8.95 on their notes due 2029
i have these two
R2S why are these Mreits willing to pay such high rates? They don’t have the money to call? or they can’t refinance at rates less than what they are already paying?
Charles-
Baffling, isn’t it?
MICROSTRATEGY FILES FOR OFFERING OF UP TO $21 BLN OF 8.00% SERIES A PERPETUAL STRIKE PREFERRED STOCK
https://www.businesswire.com/news/home/20250310264418/en/Strategy-Announces-21-Billion-STRK-At-The-Market-Program
hahahaha
this is not going to end well
There are safer ways (imo) for crypto bulls to invest their money than perpetual preferred shares of Microstrategy. Caveat Emptor!
lmao. 21 billion with a ‘b’, eh? At 8% eh? Still laughing
CODI-C another down day. CY 8.6%. CODI-B not far behind. Don’t own.
Anyone know why CODI-B is going down the way it is? I had a low bid hit mid-week and was happy, but it’s continued dropping since then. The common (which I don’t hold) is on a somewhat downward trend, but not enough that would usually explain this amount of drop in the preferred.
For those not following it, CODI-B is a 7.8% coupon fixed-to-float currently paying 8.7% that is scheduled (at current rates) to reset to 9.5% in 2028. CODI is a somewhat struggling diversified buyout firm that I don’t think is in imminent danger. On paper this might make it appealing, but the market doesn’t seem to think so!
Management has been selling a ton of these CODI preferreds into the market thru its ATM while also buying back common. I do own this pref, but a little perplexed as Management keeps touting this as cheap capital… results have been ok/pretty decent for codi overall.
Fidelity’s consolidated analyst rating for this bank is .5 out of 10. I am not sure what that’s worth but it’s rated very low by the analysts they use. The health of the company is rated at 47 out of 100 which is better than some preferred issuers but DYOD.
Libero, I guess I lost the thread. CODI isn’t a bank
Libero-
It’s not a bank- just corp that looks a lot like a BDC.
Are you thinking of CUBI?
To be honest I was looking at Fidelity’s combined analyst ratings for CODI and it was .5 out of 10. I commented because I thought that was very low and could be a concern. I did not really pay attention to what the business was but when I saw compass for some reason I thought it was a bank.
Libero, over the years I used to track them. They bought several local companies that had been successful and had gained a loyal customer following. Then not much happened. Their worst purchase was an office furniture manufacturer that was a money loser. I lost interest as they issued preferred at almost 8%. That told me they were higher risk when other companies could issue at a lot less.
good comment.. I added to CODI/PRB as the codi.prb/sjnk pair is at all time low ..I paid 22.72 (22.32 stripped) for 7.875 4/30/2028 sofr +4.96 for 12.32 ytc.. the codi/spy pair is near bottom of range since inception 5/2006.. it went from off the charts rich in november 2021 to 2 sigma cheap today ..
I bot GAINZ 4.875 11/1/2028 AT 22.94 7.47 YTM.. the gainz/sjnk pair is at lower end of 1 yr range … good article on sister bond GAINI on S/A
Yield-Hunting Part 9: GAINI And Its 7.64% Yield To Worst
Feb. 21, 2025 9:30 AM ETGladstone Investment (GAIN), GAINI StockGAIN, GAINI
Arbitrage Trader
Investing Group Leader
FWIW – Financial Times came out with a hit piece on Brookfield. Need a sub to read, but you can still Google.
“$1 Trillion Labyrinth”: Canada’s Brookfield Investigated By FT For Self-Dealing, Complex Financials”
I have some debt instruments in mostly ARGD, BEPJ & BIPJ.
https://archive.ph/pRHj9
This reminds me of pre-crash AIG…the constant transactions with it’s own entities.
AIG was IMPOSSIBLE to figure out when it was highly rated by NRSRO’s. They got it wrong by a long shot.
IT’S SCARING ME because I have fixed annuities.
As my dad said at the time of AIG (he has 70 years in commercial insurance), the failure of AIG would have wiped out all 50 states’ guaranty funds, and created an economic collapse.
Given many states would require contributions from every company doing business in the state to recapitalize the funds, every insurer would have been bankrupted.
LT, What do you do?
I told you my experience with P.E. buying out my company and then flipping it to another P.E. at least once, maybe twice.
https://en.wikipedia.org/wiki/BlueLinx
They decided they no longer wanted to handle a pension fund so I elected to take the annuity. I didn’t have much of a say, so they went with this company.
https://en.wikipedia.org/wiki/Pacific_Life
Hopefully P.E. keeps their hands off it.
LT, What do you do?
I told you my experience with P.E. buying out my company and then flipping it to another P.E. at least once, maybe twice.
https://en.wikipedia.org/wiki/BlueLinx
They decided they no longer wanted to handle a pension fund so I elected to take the annuity. I didn’t have much of a say, so they went with this company.
https://en.wikipedia.org/wiki/Pacific_Life
Hopefully P.E. keeps their hands off it.
LT, It was crazy times. I remember the news that a community or teachers union in Norway lost their investment because of AIG. Here in Northern Calif. I seem to remember they were going to have a conference in Monterey or somewhere out here and give out the bonuses to their top sales people until the government told them to cancel it.
I got excited for a min.. ARGD was down 10% and then halted.. but it was only for 400 shares, now all shares are trading and seem unchanged.
My alert on ARGD wasn’t triggered.
https://www.zerohedge.com/markets/1-trillion-labyrinth-canadas-brookfield-questioned-fts-dan-mccrum-self-dealing-complex
Hey NWGG they aren’t the first.
But when it’s laid out this way it reminds me of late 80’s savings and loan scandals. Investors and developers would buy bare property for development and borrow the money, then 30 days later raise the price and sell to another group of investors and the savings and loan would pay off the first loan and make a bigger loan. This started with the deregulation of savings & loans. I apologize there has been this discussion before about these big financial entities.
I just dealt with the minnows in my local pond. Google Soderling Bros. Clem Carnelli, Sid Shah Centennial savings and loan. I was one of the investors.
Now you have one running for Canadian prime minister. What could possibly go wrong.
Accused of complex financials? – LOL – somebody posted here about Brookfileld wanting to use its insurance company to become the next Berkshire Hathaway. My first thought was, “if they can figure out what they own.” They do have a complex structure. JMO. DYODD.
Haven”t seen a notice here on III but may have missed it. VIA renewables has come out with yet another tender offer. This one @ $24.00/sh for VIASP . At least this time they are near market pricing.
Do you have the announcement details?
I’m wondering what the expiration date is and wondering if there’s an opportunity to purchase under the $24 and capture the upcoming dividend in about 5 weeks.
https://viarenewables.com/press-releases/via-renewables-announces-commencement-of-tender-offer-to-purchase-up-to-200000-shares-of-its-series-a-preferred-stock-for-24-00-per-share-in-cash/
The tender offer is a partial one, with proration, I believe. The company went private recently. I wonder if they might de-list the preferred (? )
See page S-22 of the prospectus. The float rate goes up by 2% if the issue is delisted.
Thanks! Good to know.
GAM b , going ex tomorrow I believe, is very heavy the past few days. Lots of offers. At a 6 pct yield, qualified or cap gains the past 10 years I looked at dividends, I am long and getting…longer. 850% asset coverage
Care Cloud. I have the A preferred CCLDP. The company made an announcement they are converting it to their common. The preferred has taken a dump. I looked at the prospectus, it says there is no conversion right. In the announcement they called it an 8.75% yield when it is, in fact an 11% yield. Anyone know what is going on???
A few months ago CCLDP holders approved an amendment to the prospectus making it convertible, and changing the dividend.
https://ir.carecloud.com/news/?storyId=7893551619284134
Irish Thanks for the info. CareCloud appears to have done dirt to all shareholders with this move. My preferred tanked, and the common tanked. I wonder why the Preferred A stockholders ever voted for this?
It makes me wonder who held the preferred shares. Did the company hold them or a major shareholder of common stock?
From what I read, I don’t see any benefit given to preferred A shares for converting but just my opinion.
Holders of CCLDP toke the loss EXCEPT large holders don’t have to do the conversion. Also CCLDO is ok so anyone knowing what was happening could switch to CCLDO or sold CCLDP for $19. CCLDP went down to $14.
I wonder how many investors knew what was going to happen in advance.
Bizarre. Common headed back down to 1? What’s the short interest?
Quick read was 8.375 prefd holders with over 100,000 shares were not forced to convert to approx 7.3358? shares…common down huge today
but why is the 11% prfd way below the 8.375?
I
Maybe, because with that much at stake they might litigate.
What do you like about care cloud? I took 1 look at the books and said no. Is it future/anticipated growth 5-10 yrs down the line? I personally dont like micro caps with a net loss. They also approved to dilute with more common shares, so the price will continue to sink especially if it is not profitable. The only way is to dilute shares and hope for a turnaround. They also need more shares to divy out to the board which they authorized as well. I also only saw selling of shares of insiders too.
CCLDP share holders got screwed. The conversion is 7.2258 shares so with the common at $2 the preferred holders are getting $14.71 for there $25 preferred. Goes into effect today.
Not to rub salt, but technically more since there are past accrued above $25. What I can’t figure out is why CCLDO isn’t trading higher but I have an over full position of it.
Anyone with less than 100,000 shares of CCLDP had a forced conversion to CCLD stock. For most that was a loss getting just under $15 dollars and an significant drop by the end of the day to $12.59. Those with 100,000 shares of CCLDP kept them and saw a 30% jump in price today to $18.99. Being in the under 100,000 category, today I have the equivalent of selling my CCLDP for $11.80. Not happy.
IIPR-A under $25 or par FYI
stock not really down – this is a weed reit pref – 9% at par
Just heads up, IIPR common stock is down nearly 50% from 1 year high. I thought they had their largest tenant default EOY 2024 which caused the preferred to tank as well from $26/$27 handle. Might want to circle back on this before backing up the truck.
well aware on IIPR of tenant which was partially resolved
2 billion market cap, 150m in cash, 300m in debt
No debt maturities until May 2026. Debt service coverage ratio of 16.8x (calculated in accordance with IIP’s 5.50% Unsecured Senior Notes due 2026). 11% debt to total gross assets, with $2.6 billion in total gross assets.
Then like 1m pref shares issued
Z – Nice. Thanks for the update #s and data points. Cheers.
Why did IIPR-A take the big drop today? It’s not an ex-date.
do not know – this happened once before like a huge volume day last year (maybe several hundred thousand) as the co. has/had the ability to ATM these prefs I believe and sold some into the market – with only like 1m outstanding its not real liquid so any selling or buying can move this one
then it bounced back in a short period of time last year to around 26
might be the company selling with ATM here, as these are generally not high volume prefs
I didn’t find any news and bought into a starter position and now just set an alert and I guess a director sold 7599 shares of common yesterday.
Lots of lawsuit notices but those seem to have been going already and I see those with other companies.
Let’s keep an eye out for anything quirky…
I am with you. Put in a lower bid and snagged a starter position. It appears in a bad scenario these preferred should pay considering how much room there is to cut from the common. In the worst case they have a lot of assets and a reasonable amount of debt. Under par makes the call irrelevant and 9% seems nice for the higher risk bucket.
If it goes above 26ish.. well that is a nice problem to have and I can consider selling it.
Bank stocks
JPM -4.0%
KBE -3.7%
KRE -3.5%
Looking at SPX doesn’t tell you what’s going on under the hood.
When I first mentioned DOW (November ?) it was around 45 and the yield was ~6%. My deep target was 34, which I recently expanded to 32-34. DOW closed at 35.62 today, upping the yield to 7.9% (assuming steady 70 cents dividend).
The target is in sight. What happens next? Will the dividend hold?
XLI not looking too good.
Wow, didn’t know the yield on that was so high. The annual div highly exceed free cash flow, could be a trap but now I’m watching. Schwab says earnings are on 4/24 before market.
KKR -9.2% today and 29% off the Jan. all-time high. Some others down today with the same stats:
BX -4.9%, -25%
APO -4.6%, -27%
ARES -5.2%, -20%
OWL -5.0%, -26%
BAM -5.3%, -16%
BIP and BN also sharply down.
Panicky
Some of these will thrive in an environment where corporations are reshoring and reacting to tariffs. Volatility creates opportunities for capital market companies.
Chris-
Are you speculating that tariffs will lead to reshoring? When?
4:12 EST: March 4 (Reuters) – Flagstar Financial Inc:
* FLAGSTAR FINANCIAL INC -FILES FOR NON- TIMELY 10-K WITH THE U.S. SEC
Oh boy….
Guess they missed by a day – https://www.sec.gov/ix?doc=/Archives/edgar/data/0000910073/000091007325000038/fbc-20241231.htm
Hmmm– 10K is dated 2/28/25 or 12/31 – not sure what they missed. Nothing burger…or?
METCZ large drop. METC has been weak. Down today on earnings. METCL quiet.
rocks-
I don’t see any earnings reports on their site– you have a source?
No, Gary. I saw the number on a TradingView chart.
China raised tariffs by 10% on soybeans, pork, beef, and fruits starting March 10th, and 15% tariffs on chicken, wheat, corn and cotton in line with yesterday’s press reports of agricultural goods being Chinese tariff targets. 10 American companies involved in defense work have also been put on the entity list.
Additionally, China’s Customs suspended imports of US lumber effective immediately, and suspended soybean import qualification for three US companies from Tuesday including CHS Inc (CHSCO), Louis Dreyfus Company, EGT (BG).
New issue KKR-D
KKR mandatory convertible
https://www.sec.gov/Archives/edgar/data/1404912/000114036125006869/ny20042797x1_424b5.htm
PLDGP – Moodys raises rating to A3 from Baa1
https://www.moodys.com/research/Moodys-Ratings-upgrades-Prologis-senior-unsecured-ratings-to-A2-from-Rating-Action–PR_503292?cid=GAR9PTU7VKT2671&emailToken=eyJ0eXAiOiJKV1QiLCJhbGciOiJIUzI1NiJ9.eyJVc2VySWQiOiIwNTkzODg3Yi1iM2NhLTRmNTgtYmY3Ny0xZDRjZmI3M2VlY2QiLCJEb2NJZCI6IlBSXzUwMzI5MiIsImNyZWF0aW9uRGF0ZSI6IjIwMjUtMDMtMDRUMDc6MTQ6MzcuNTQzNjE4NC0wNTowMCIsImV4cCI6MTc0MTM0OTY3NywiVXNlck5hbWUiOiIyd2hpdGVyb3NlcyIsIlVzZXJUeXBlIjoiMiJ9._3t5e9_WESao2AhEsIiZpsU0AYNMcT3c7oI9jPlgA2g
Is it still good to buy? What is the risk being called in November?
Harbor
Mandatory call 11/26
I just bought some
Thanks Sweetie. YTC is a little low for me even A rated.
I agree Honey Buns.
From the latest 10K – https://www.sec.gov/Archives/edgar/data/1045609/000095017025021272/pld-20241231.htm#noteeight p84: “At December 31, 2024 and 2023 our Series Q preferred stock outstanding had a dividend rate of 8.54% and will be redeemable AT OUR OPTION on or after November 13, 2026. Holders have, subject to certain conditions, limited voting rights and all holders are entitled to receive cumulative preferential dividends based on liquidation preference. The dividends are payable quarterly when, and if, they have been declared by the Board, out of funds legally available for the payment of dividends.”
Which Harbor issue is this? Thanks
PLDGP is an old “Grid special.” I wish I could find my notes on it, but I can’t… On the surface, I would think the possiblity of call in Nov is high…. That being said, at today’s rate, based on what’s on QOL, I would say it is not a buy
I have the following:
8.54%
maturity 11/13/2026 @ $50
cumulative
not QDI
PLDGP sells now for $55.62 with a possible call at $50 on 11/13/26. That’s a YTC of roughly less than 2%
danzeb –
“PLDGP sells now for $55.62 with a possible call at $50 on 11/13/26. That’s a YTC of roughly less than 2%”
Thank you…what in God’s name are folks doing posting ideas to the RIA section that have 2% YTMs?
I really don’t know what anyone is thinking on buying PLDGP at current prices – the rest of us prefer to make income investments that at least exceed inflation.
If anyone is hell bent on buying similar overvalued property REIT preferreds with such meager returns, take a look at MAA-I and SPG-J.
assuming 55.62 I get a stripped price of near 54.86 for ytc (11/13/2026) of near 2.6
It took me a while to get my head around the KTN trade. It has these features:
– safe investment for almost 2 years
– high yield on four payments
– YTM of ~6.5% at 26, satisfactory considering the safety
I called it safe without knowing why. Why is it safe? There are other short maturity plays with a better YTM.
YTM = (3.10/price paid) * (365/days held)
Ask Siri for days held.
“There are other short maturity plays with a better YTM”
Please list these, esp those with ~2 year maturity.
I can think of two…in no particular order…TFSA, TPTA…lol
SWKHL, EICA, NEWTZ, OCCIN, SPLP-A, SNCRL, ATLCL
R2S the SWKHK I am not sure about. My understanding is the original investors want out so they want the managers to now liquidate the business since it hasn’t been successful enough to generate cash to operate and to pay their investment off. In a perfect world the assets should be worth enough to be liquidated but they still need enough to allow the preferred to be called. My understanding is the investors are not willing to add money to grow the business. If anything outside their control causes a loss it could be a problem.
At least that is what I thought so I bought it then had second thoughts and sold
Prospectuses for all these because the income they generate is wildly different (as is their creditworthiness)
https://www.sec.gov/Archives/edgar/data/1089907/000155278123000394/e23404_swkh-424b4.htm
https://www.sec.gov/Archives/edgar/data/1587987/000121390021002536/f424b20121_newtek.htm
https://www.sec.gov/Archives/edgar/data/1754836/000110465921127299/tm2130458-2_fwp.htm
https://www.sec.gov/Archives/edgar/data/1716951/000171695121000135/occi-seriesepreferredfinal.htm
https://ir.steelpartners.com/node/10506/html#a_065 (page 157)
https://www.sec.gov/Archives/edgar/data/1131554/000110465921086906/tm2120310-2_424b5.htm
https://www.sec.gov/Archives/edgar/data/1464343/000143774921027101/atlc20211118_424b5.htm
Anyone else get in on KTN recently? Massive volume last Friday and today. The underlying bond is trading at 105.8 or 4.85% YTM. YTM on KTN is above 6% when including accrued div, at current prices… have been buying 25.85 to 26.25
https://www.quantumonline.com/search.cfm?tickersymbol=KTN&sopt=symbol
I did, Maine.
I just missed last Friday’s opportunity. I was making up my order but was literally a couple seconds too late.
Today I swapped some EP-C for it. I paid 26.19, 26.09, and 26.08. I have a 25.81 bid out there.
Mbg, kind of rare for a name like this to be on offer two (trading) days in a row. Whelp, I will take it! Plus, buying a 6% issue allows myself to think I am a smart yield investor, not just a yield hog!
Ha!
Yeah, after Friday’s close I set up a GTC order to buy some (my 25.81 bid). I doubted I’d get any at that price today, and I didn’t. But when I checked, I was surprised too that prices were still at Friday’s level. Today’s volume was almost twice as much as Friday’s!
On days like today, I’m glad I have ~10% in cash.
The safer stuff didn’t fall as much as the riskier stuff today, but sooner or later … just hope I’m fishing in the right pond when the fish come out.
Ahhh, you were the 25.81 bid.. apologies in advance as I skipped you by a few pennies at times! Actually, my best fill was a fidelity market order when it was (your bid) 25.81 by 26.01 ask. I was able to get 25.83, but sadly it was only 55 shares. I had a few other orders fill in 25.90’s but most of my purchases were closer to $26.10. Hopefully we get another chance tmmrw.
Here is the link for the underlying, in case it anyone’s doesn’t have it handy..
https://www.finra.org/finra-data/fixed-income/trade-history?symbol=AON3675835&bondType=CA
Nice work, Maine!
good comment assuming 26.27 i get a stripped price near 26.09 which quantwolf.com calculator using clean calculator gets a 5.69 yield
https://quantwolf.com/calculators/bondyieldcalc.html..the ktn/sjnk price pair has seen ktn undperform since 3/2022 ..current absolute price level has supported prior pullbacks since july 2023
Bad calculator. It’s approximately 6%. I’m holding out for a little lower price.
Keep in mind and in your calculation KTN is a semi-annual pay.
Martin, per 2whites comment, I am showing 34 cents accrued for KTN, assuming 1/3 of the div has accrued.
For simplicity sakes, let’s say the price is 26.14 (25.8 div adj), or a 6.3% YTM per the fidelity yield calculator. At a price of $26, YTM is 6.6%.
A true “2whiteroses special.”
I wonder what the assumptions are in the FIDO calculator with respect to price deterioration as time moves forward to 7/1/27 and thus the resulting income reinvestment?
same as any (most) YTM calculator.. dividends are re-invested at the same yield. You can argue this aggressive and then build your own calc. I do this at times via excel, learn the math, then proceed to forget it!
BNY prices $500M depository shares with interest in preferred stock.
The Bank of New York Mellon (NYSE:BK) priced an underwritten public offering of 500,000 depositary shares, with a liquidation preference of $100,000 per share (equivalent to $1,000 per depositary share), at a public offering price of $1,000 per depositary share ($500,000,000 aggregate public offering price).
BNY (NYSE:BK) intends to use the net proceeds from the sale of the depositary shares for general corporate purposes, as further described in the preliminary prospectus supplement.
Dividends will accrue on the liquidation amount of $100,000 per share of the Series J preferred stock (equivalent to $1,000 per depositary share) at a rate per annum equal to 6.300%.
The offering is expected to close on March 10, 2025.
https://www.sec.gov/Archives/edgar/data/1390777/000119312525043537/d854146d424b2.htm
https://www.prnewswire.com/news-releases/bny-announces-pricing-of-public-offering-of-500-000-000-of-depositary-shares-representing-interests-in-preferred-stock-302390731.html
5 year fixed rate reset.
“March 20, 2030, at the “five-year treasury rate” (as defined in the preliminary prospectus supplement) as of the most recent reset dividend determination date plus 2.297%.”
FWP contains the CUSIP for those interested (DYODD). Credit ratings of BAA1/BBB (Moody’s & SP)
https://www.sec.gov/Archives/edgar/data/1390777/000119312525044478/d854146dfwp.htm
I bot DCOMG ftf 9 7/15/2029 3 mo sofr + 4.95 at 26.17 (25.97 stripped) for a 7.93 ytc ..good article on S/A Dime Community Bancshares: Baby Bond Offers An 8.1% Yield To Maturity.. DCOMG/IGIB pair has gone from near 2 sigma rich in december to near 2 sigma cheap today with horizon going back to inception in july
Feb. 03, 2025 9:09 AM ETDime Community Bancshares, Inc. (DCOM) Stock, DCOMP Stock, DCOMG StockDCOM, DCOMP, DCOMG
Jeremy LaKosh
MJ, one thought. If you waited a week or two you might pick it up cheaper as it is past last ex-divy date and we might get a market drop if the government has a shut down.
anything is possible.. I’ll stick with my model
RILYG still moving up today. Up 25% in the last 5 days to $14.49. I don’t own it.
The prices for CMSD and CMSC are seriously misaligned.
Disclosure: I have a large position in CMSC at the moment.
Retired, I’m holding a smidgen of CMSA bought @ 22.39
RS, how are they misaligned? CMSD 6.24%, SMSC 6.29% this morning.
CMSD should be 18 cents cheaper than CMSC. Instead, it has been as much as about 40 cents more expensive.
according to my mean reversion model the mean spread of cmsd/cmsc price pair is 11 cents (cmsd over) with one standard deviation being 23 cents (1yr horizon)
mjtroll, does your mean reversion model account for the six week difference in ex-div dates?
6.5 weeks to be exact.
Thank you Retired. You are right. I swapped all my CMSD for CMSC in non-taxable account. CMSD just paid quarterly interest whereas CMSC’s pays on April 15 so pricing should be the other way around .
There should be caution with wash sales in a taxable account.
Nice call!
Ready Capital cut the dividend on the common by 50% will this give them enough breathing room to pay off RCB and RCC in 2026?
RCD is down pretty sharply with this news. If you think cutting the common puts them in a better position for their debt, this might be a buying opportunity. I’m unfortunately already holding, but at 24.37 I’m calculating 10.75% YTC in 2026, 9.9% YTM in 2029. Note that’s it already dropped last Friday after ex-div, so today’s drop is additional.
After last week’s dismal quarterly report and lowered distribution, I knew this was coming. Now at a 52-week low.
Raymond James Downgrades Kimbell Royalty Partners to Market Perform From Strong Buy
Rocky, that was quite a miss they reported Feb. 27 and the stock dropped today on opening. Should have dropped Friday. Perfect short for some people.
RPTP (Rithm Property Trust 9.75% preferred) changed it’s temp symbol today from RPTCV to RPTCP.
.I paid 25.11 for WHFCL (7.13 YTc 9/15/2025) maturity 9/14/2028 ..the whfcl/sjnk pair is near bottom of 1year range..good article on S/A
Yield Hunting Part 11: 7.92% YTM With WhiteHorse And Its Baby Bond WHFCL
Feb. 22, 2025 3:14 AM ETWhiteHorse Finance (WHF), WHFCLWHF, WHFCL
Arbitrage Trader
OXLCG is trading at Schwab.