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FYI
OCCIM trading on grey market
No dice yet on FIDO Schwabby
FIDO: OCCIM
24.75 ask
2490 bid
Filled at E-Trade.
$24.84
You won’t see a bid ask price, but it will allow the order to be placed.
You can use Fido to get the real time bid ask price.
Schwab declined my trade, saying it is SEC 15c-11.
Able to buy at Vanguard (altho first few orders went through, then showed “dropped”); Fido shows permanent symbol and price, but won’t allow a bid.
Was that on the Schwab website, or did you call in? Usually you can trade it if you call and let them read you a disclaimer. Not all of the phone reps understand this.
Legend,
Thank you for mentioning your successful trade on Etrade. Otherwise, I would never have tried without the bid/ask. It worked for me as well. Thanks again.
Steve M.
I bought 100 at 24.75 at Ally just now. Kind of just pinched my nose and bought a tiny bit. Won’t make a big difference either way but almost 8% right now sounds fine with a defined maturity date. Common div can be cut to hell and back to protect me.
For those interested in FGN.
Moody’s affirms the company (FG) rating and it’s outlook remains stable.
They issued a Baa3 rating to the company’s $500 mm of 10-yr Sr Unsecured Notes. FGN is a Sr. Note that is “… guaranteed on a senior, unsecured, unsubordinated basis …” (from prospectus). Thus, I assume it’s also rated Baa3. QOL only has the S&P rating (BBB-).
https://www.moodys.com/research/null-Moodys-Ratings-affirms-FGs-ratings-and-rates-senior-unsecured-notes-Rating-Action–PR_1000010328?cid=GAR9PTU7VKT2671&emailToken=eyJ0eXAiOiJKV1QiLCJhbGciOiJIUzI1NiJ9.eyJVc2VySWQiOiJkYzVkYjczMC01NTBiLTQ3ZjctYjhjZi05NzY2ZjAxZmU0MzMiLCJEb2NJZCI6IlBSXzEwMDAwMTAzMjgiLCJjcmVhdGlvbkRhdGUiOiIyMDI0LTEwLTAyVDE3OjE4OjQ4LjUwNzk4NDctMDQ6MDAiLCJleHAiOjE3MjgxNjMxMjgsIlVzZXJOYW1lIjoiY3BhbWlrZW1iYUB5YWhvby5jb20iLCJVc2VyVHlwZSI6IjIifQ.zfG3VOY8OJGOXhJ5IxHrSGqc-5Vyh7knlnM2R1IASic#0572b961dceedc105347b4ba6f05cd6f
Interestingly, FGN does not show a rating by Moody’s that is at least if you search for it at Moody’s via their CUSIP number as listed on QOL…. However, you have to be right, whether they are officially rated or not, because, as per p S-22, “The notes and the guarantees will be the senior unsecured obligations of the Issuer and the guarantors and will rank senior in right of payment to all of the obligations of the Issuer and the guarantors that are expressly subordinated in right of payment to the notes and each guarantee and equally in right of payment with all of the existing and future senior unsecured indebtedness of the Issuer and the guarantors, including, as applicable, the obligations of the Issuer and the guarantors under the 2029 Senior Notes, the 2053 Senior Notes, the 2028 Senior Notes, the Credit Agreement, the FGLH 2025 Senior Notes and the FNF Credit Agreement.”
2wr,
Thanks. Like you, I didn’t find FGN on Moody’s list (see the link). That’s why I just said “I assume” FGN is rated Baa3 too.
https://www.moodys.com/credit-ratings/FG-Annuities-Life-Inc-credit-rating-895006020/ratings/view-by-debt
September 30, 2024 at 10:13 AM EDT
NEW YORK–(BUSINESS WIRE)–Sep. 30, 2024– New Fortress Energy Inc. (Nasdaq: NFE) (“NFE” or the “Company”) today announced that the Company has determined to delay the payment of the Company’s previously declared $0.10 per share Class A common stock dividend, with a record date of September 13, 2024 (the “Dividend”), until such time as the Company has reached an agreement with its noteholders to address the Company’s near-term maturities and liquidity requirements. The Company expects to reach an agreement with its noteholders in the near future, after which the Company will reevaluate the payment of the Dividend, including with respect to its amount and the timing of any potential payment.
Which brings us back to GMLPF….
And NFE stock is down 10% today as I write this. Been in decline big time since the first of the year. GMLPF is also down 10% today, but that is not unusual as huge jumps in price up and down are the norm for it. I wonder if they try to weasel out of GMLPF or do a ridiculous tender offer for it? If they redeemed it at par it will cost them about 132 MM. That would make me happy as I own some of this dog. Guess I can dream!
The senior secured NFE 8.75% Bond due March 2029 is down to 72.5% with YTM 18.8%. It looks difficult to avoid debt restructuring.
Do you have the CUSIP For that?
New Fortress Energy, 8.75% 15mar2029, USD (USU6422PAD07)
But better check the latest news prior to investing.
They are planning new share issue as well as debt restructuring, exchange of bonds to new ones with longer maturity and a 12% coupon. Not final, only preliminary agreements with priority creditors.
Would want a higher coupon to take on that amount of risk.
The new Bond will be 1st lien secured against certain hard assets of NFE. Also, it assumes that NFE has raised at least $400m in new capital, so 12% is probably adequate.
” On October 1, 2024, New Fortress Energy Inc. (the “Company”) announced that it priced its underwritten public offering of 46,349,942 shares of its Class A common stock, par value $0.01 per share at a public offering price of $8.63 per share. Wesley R. Edens, chairman of the Board of Directors, the Chief Executive Officer and shareholder of the Company, has agreed to purchase 5,793,742 shares in this offering at the public offering price per share and on the same terms as the other purchasers in this offering. The underwriters will not receive any underwriting discount on these shares as they will on any other shares sold to the public in this offering.
The offering is expected to close on October 2, 2024, subject to customary closing conditions. The Company intends to use the net proceeds from the offering for general corporate purposes”
Market order at the open
SCE-H: 200 shs at $26.85. The bid/ask was 25.05 / 25.12
I’ve seen a couple of times over the past few weeks where this showed a price of $24.60 on Schwab. I tried to buy and the bid / ask was in the $25. teens neighborhood. I couldn’t see where any actual shares traded at that amount. Could it have been a dark web thing? Anyway, I left an open bid for $24.60 for about a week and obviously nothing happened. Maybe I should have been playing the other end and had a sell order out there….
interesting that the price did not show up on the tape ..in fact has not traded there in since 2018..fwiw I paid 25.03 for it
I know. I should have taken a screen shot. Not sure how Schwab can have such inaccurate info. I saw that price posted on at least 2 separate occasions, and it was during active trading hours. That’s why I was wondering if it was a dark web thing. I added a few shares at $25.05 this morning. Not as good as $24.60, but at least I wasn’t the one who fat fingered the $26.85. I still have some up for sale at that amount if anyone is interested 🙂
Market order at the open?
SCE-H: 200 shs at $26.85. The bid/ask was 25.05 / 25.12
mbg, someone probably fat fingered it. I built an overweight position in it, but don’t know if I should trim it.
Charles and Mark,
I put in sell orders for my SCE-H. Today’s the last day of the quarter. Who knows, maybe we’ll see more good deals, especially around the close.
mbg
Good luck with your Sell order.
After the sole $26.85, Bid-Ask is now down to $25.05.
you will see these often I am finding it is back door etf buying/selling/adjusments and funds who allocate off of indexes do this kind of thing all the time ‘back office’ ..I love stink bids and always have a few hotlist ones on pfds out for such goings onnzzz
Westie, Look at the chart. This is one of those stocks that falls after ex-divy date and dividend payment then it rises into the next harvest date. Pretty good bet to sell to the dividend harvesters. I’ll wait to later to sell. I was buying. I can make the same as the dividend or more buying after the ex-dividend and selling close to the next ex-date.
Bea, late to the party and probably paid too much but I can average down. I bought Gibson today.
Charles
Yup, understand.
I’ve often had the same thoughts.
Still. tax on Div income, if QDI, can be less than Short Term Gain if one is in a higher bracket……….and sell/buy takes more work
My post to mbg was sarcastic input.
I agreed with you/Bea that the $26.85 was a one-off. .
On FIDO Trader Pro Directed Orders, you can see the stacked Bids/Asks.
There was a host of Asks in the queue from $25.08 on up..
Westie, thanks for the chuckle of the day.
Charles M signing off
Well, well. well old Silvergate is back in the news just in time for Halloween. Uncle Sugar got his hands in the cookie jar?
https://www.piratewires.com/p/inside-biden-admin-plot-to-destroy-silvergate-and-debank-crypto-for-good-nic-carter
Silvergate was a house of cards long before FHLB and FDIC or anyone else from government got involved. Short sellers Seawolf Capital Marc Cohodes nailed it back in 2022 when they laid out a detailed case for why it was going to zero. It had everything to do with their balance sheet and reliance on FTX.
The writing was on the wall for anyone who cared to read it.
> Uncle Sugar got his hands in the cookie jar?
It went a crypto bank that got caught swimming naked when the tides went out.
Not everything is the fault of the federal government.
There was a period of time Silvergate was just fine after the chaos. If the bank was truly in bad shape they do not voluntarily wind it down which is super rare for a bank. Silvergate has not even really had much of a chance to tell their side of the story due to winding things down still and lawsuits/fines.
Here is a different side of the story for Silvergate. Ignore the political aspect and just focus on the key ideas.
https://www.zerohedge.com/crypto/inside-biden-admins-plot-destroy-silvergate-and-debank-crypto-good
@fc Silvergate
Thank you fc for your input. I am no fan boy of Silvergate just looking for facts.
Others on this site make opinions without reading or are plain ignorant. They don’t need to read because they know everything already.
> If the bank was truly in bad shape they do not voluntarily wind it down which is super rare for a bank.
I’m not sure I follow your logic here. If Silvergate wasn’t in bad shape, why not continue as a going concern?
The pressure from the govt would not allow them to have assets from crypto related sources above 15% basically breaking the setup that made them really profitable. If they are not allowed to do that things would just continue to go downhill thus wrap it up.
“Instead, I learned the economics of the business simply didn’t make sense after regulators imposed the new 15 percent crypto deposit limit. SEN would be rendered useless, as the bank wouldn’t be able to maintain accounts with all the relevant firms that would be transacting. And the drastically reduced revenue streams would no longer justify the high fixed costs of supporting crypto firms (especially from a compliance perspective). Sources told me leadership even considered charging large clients high fixed fees for banking access — believing they would be willing to pay, since so few other banks served crypto at that time — but they couldn’t make the numbers work. So they chose to wind the bank down in an orderly manner and make all depositors whole, which they were able to do.”
CTA-B just keeps chugging higher. I got it earlier this year at 68 and change based upon discussion here on III. It crested at little over 83 this week. But, I think it still goes higher…maybe 90-100, who knows. When I bought in, I went in with a 110% allocation so liking the gains. The question now is, when to sell some/all? I am going to just let it ride for now but might put a stink ask way up around 95. You never know.
People think the fed will cut rates again down the road. Now I have no idea what this will do to the 10 year for example but in general I can see almost everything a hold until 2025 at least. Imagine the 10 year at 3.2 or what not and that should cause prices to go up even more. Frankly I cannot really imagine what we discuss on this forum going down much in the current env. UP is the trend for now. I can fully see CTA-B being bought for 90+ some day soon.
On September 30, 2024, FTAI Aviation Ltd. (“FTAI Aviation” and, together with its consolidated subsidiaries, the “Company,” “we,” “us” or “our”)announced that Fortress Transportation and Infrastructure Investors LLC, its subsidiary (the “Issuer”), is commencing an offering of $400.0 millionaggregate principal amount of senior notes due 2033 (the “2033 Notes”) in a private offering (the “Private Offering”), subject to market and otherconditions. The 2033 Notes will be fully and unconditionally guaranteed on a senior unsecured basis by FTAI Aviation.The Issuer intends to use a portion of the net proceeds from the Private Offering to (i) redeem in full all of the Issuer’s outstanding 9.750% Senior Notesdue 2027 (the “2027 Notes”), (ii) repay in full all amounts outstanding under the Revolving Credit Facility provided under the Third Amended andRestated Credit Agreement, dated as of May 23, 2024, without a reduction in commitments and (iii) pay fees and expenses related to the foregoingtransactions. The Issuer intends to use the remaining net proceeds from the Private Offering for general corporate purposes, which may include additionalrepayments of our indebtedness.The 2033 Notes will be offered in the United States to persons reasonably believed to be qualified institutional buyers under Rule 144A under theSecurities Act of 1933, as amended (the “Securities Act”), and to persons outside of the United States under Regulation S under the Securities Act. The2033 Notes will not be registered under the Securities Act or any state securities laws, and, unless so registered, may not be offered or sold in the UnitedStates absent registration or an applicable exemption from registration requirements.The information in this Current Report on Form 8-K filed pursuant to Item 8.01 does not constitute a notice of redemption with respect to the 2027 Notesor an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or otherjurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any suchjurisdiction.
FTAIP not mentioned.
Yazzer, I have the same “problem”–and it is a very nice problem to have. CTA-B has been above 110 in the last couple of years. I had planned to hold it long term. But if it rises above 100, I will sell and look for a new entry point.
Tim, apologies if this was already mentioned.
Goldman to issue a new FtR. I hate to say it, but this doesn’t look that bad, considering everything else has run up so much and not much call protection.
https://www.sec.gov/ix?doc=/Archives/edgar/data/886982/000119312524227000/d895067d8k.htm
“from the date of original issue to, but excluding, November 10, 2034 at a fixed rate per annum of 6.125%, and (ii) from, and including November 10, 2034, during each Reset Period, at a rate per annum equal to the Ten-Year Treasury Rate as of the most recent Reset Dividend Determination Date plus 2.400%”
I too would be interested in this GS issue but the link doesn’t provide much info. I think I will call Schwab on monday and see if they can get me all the “details”. Iam a little concerned about that “reset rate” as well.
It looks like the details are in Item 9.01, Exhibits 3.1 and 4.1
Liquidation preference looks like $25,000. 80k shares being issued. The “reset rate” looks pretty much standard, meaning it’s set to equalize the current spread between this issue on pricing day and that day’s level of the 10YR. In other words, 6.125% – 2.40 = 3.725%, the approximate level of the 10yr when priced. So reset rate essentially followed the usual pricing convention most frequently used for resets and even floaters.
This issue doesn’t look like it’s intended for Joe Sixpack
https://www.sec.gov/Archives/edgar/data/886982/000119312524222906/d872250d424b2.htm
CUSIP 38141GB45
Ugly day for 8.75% POWWP preferred, down -17.2% from 26.55 to 21.99 with a low of 19.80. Last Thursday, 9/19, they fired their CFO and announced they were relooking at financial results from 2020 through 2023. What is strange is that this did not affect the price until today, 9/27. For Q2 ending 6/24, they lost ~ $10 million on sales of ~$30 million, so they are appear to be a sinking shell on first glance.
We do not own POWW and/or POWWP in any account.
Link to SEC filing on CFO change:
https://d18rn0p25nwr6d.cloudfront.net/CIK-0001015383/291b948b-6ba9-4db5-8142-2da95ce97f00.pdf
Tex for hard bullets say Lyman 2 that takes antimony. This minor metal has increased about 300% in cost and I believe it’s considered a conflict metal on top of that. You sell something at a set price and then go to production you can lose money if you locked in the price.
Volume of 69K traded in single day vs. 1-2K on average – someone wanted out no matter what. Perhaps CFO unloading their shares? Common down only 1%…. So is this a falling knife or opportunity for the preferred shares?
SPNT-B
at about an 8% YTC (2/26/26), including accrued divi
QDI as well
25.23 here
SiriusPoint Ltd 8.00% Resettable Fixed Rate Preference Shares, Series B, $25 per share, redeemable at the issuer’s option on 02/26/2026 and every Feburary 26th in every fifth year thereafter at $25 per share plus accrued and unpaid dividends, and with no stated maturity.
Cumulative distributions of the Annual Fixed Dividend Rate will be paid quarterly on 2/28, 5/31, 8/31 & 11/30 to holders of record on the record date fixed by the board, not more than 60 days or less than 30 days prior to the payment date (NOTE: the ex-dividend date is one business day prior to the record date). The Annual Fixed Dividend Rate will be 8.00% until the first redemption date, then it will be equal to the sum of the Five-Year U.S. Treasury Rate on the applicable fixed rate calculation date plus 7.298%, resetting every 5 years thereafter on applicable fixed rate calculation date (see prospectus for more details).
Yes – I have been in SPNT-B since last November at prices between 24.72 and 24.97 and collected $1.50 in divvy so far. Pretty fully allocated though I could go another 100-200 shares.
can anyone provide a link to their favorite ytm calculator? TKS
I like this one
https://quantwolf.com/calculators/bondyieldcalc.html
https://basicexceltutorial.com/how-to-calculate-ytm-in-excel/
https://spreadsheeto.com/yield-maturity-excel/
FWIW
New Mountain Finance
10.15.27 mat
6.2%
647551AG5
BAA3 Moody
I bot some of this issue at .75 cents above par at FIDO. Maybe somebody else would benefit as well?
DYODD YMMV
NWGG I have been in
647551AF7 since Feb.
6.875%
98.742
Due 2-1-2029
FIDO tells me I have a short term objective.
Current cost 101.46 available at FIDO
NWGG and Charles,
Hope this is useful for comparing.
Their 8.25% coupon baby bond NMFCZ matures 11/15/28 (callable beginning 11/15/25).
Sr. Unsecured. Rated Baa3
My calculations:
1) 25.89 ask –> 7.60% current (stripped) yield and 6.16% YTC.
2) 25.65 bid –> 7.87% and 7.03%
@mbg
Thanks for the calcs. I don’t usually hold to maturity. I also don’t usually pay a premium. I don’t buy on stripped price. Not for everyone maybe, but it works for me. I’m keeping my long dated IG only because they were trading a hamburger meal prices. They may get called but unlikely. There are still a lot of bonds that pay3/4/5 percent that can be bought for capital gains.
mbg, I own that too! Part of the strategy of income and balance between risk and safety. I don’t buy bonds to trade, just a part of a longer term strategy. Although I have been tempted lately seeing the prices. I am always exposed to something being called then having to replace it in a lower rate environment so a possibility of lower income in the future.
FWIW..NMFCZ/SJNK pair has seen NMFCZ underperform since inception in november 2023… no sign of reversal
i sold my holding ; was thinking they might call NMFCZ on call date with the funds from the new offering ; ? any thoughts on this
mjtroll
Pairing a low investment grade-Z (Moody Baa3) with junk rated?
@CM
Yep, I sold that one today at a profit and rolled the proceeds into the shorter dated maturity. I think that some of these short dated IG issues may have more price action than other maturities. The yield curve uninverting IMHO favors the short stuff. Honestly who knows, I just try to go where I can find value at minimum risk.
Anyone in CHSCM or CHSCN may want to swap for CHSCL as the yield is higher.
Jtrader,
I have all three but CHSCL is above par and has a call risk (1/21/25), while N and M are perpetual fixed. and of these two N is the better buy vs M.
AJ – Jtrader is correct. Take a closer look at the issues you own.
CHS fixed the rates on L, M and N (the float provisions were eliminated). But all three retain call provisions. M is callable on 9/30/24, N began being callable on 3/31/24, and L is callable on 1/21/25. Many of these preferreds are owned by members of CHS, so there is speculation that the calls will be deferred, as has been the case with N. There is no assurance of perpetuity with any of these. As to when or if any will be called, it’s all guesswork.
AJ,
Based on their last traded prices today, all three (CHSCL, CHSCM, CHSCN) have call risk.
Of the three, CHSCL has the highest current yield and the least call risk.
1. CHSCL (at 26.07). 7.21% stripped yield and -5.06% YTC.
2. CHSCM (at 26.00). 6.50% stripped yield and – 37.19% YTC.
3. CHSCL (at 26.25). 6.77% stripped yield and -47.7% YTC.
I get strip out the little bit of accrued dividend from the price to get stripped price.
And then there is CHSCO, which has been callable since 9/2023 and has a higher coupon rate. Me thinks CHS would redeem that one before M or N.
you have chscl twice. I think the last one is CHSCN
Sold all my CHSCM this week in the 25.90s. I know a call is not likely but it exists nonetheless so I jettisoned with a nice gain and collected divvy for more than a year.
Entergy Texas said they have no plans to redeem ETI.PR. Here is their reply to my email:
Good Morning,
There are no plans to redeem the Entergy Texas preferred shares in the foreseeable future.
Thanks,
Shannon
Dumas, Shannon T
Can you give me the actual stock symbol for Entergy Texas??? I put it in quantom but nothing came up.
Chuck,
The symbol on Quantumonline is ETI- . There is nothing after the hyphen. It’s ETI-P on Yahoo finance.
In quantum you can work backwards from the input of ETI-. Near the bottom of description, it has a link to “Parent company record” which will reveal parent ticker symbol…which is ETR Hope this helps.
https://www.quantumonline.com/search.cfm?tickersymbol=ETI-&sopt=symbol
mbg,
Thanks. No wonder I couldn’t find anythin on that on their website. Fidelity messed up this one.
Aj and Chuck P – One caveat, just keep in mind that ETI preferred is up now over 11% since just less than two months ago. That’s well over two years worth of yield and it’s now trading just over par.
At this point, with some of my mid credit quality to junkier perpetuals, I’m actually looking at trimming here or unloading since I can lock-in 2-3 years worth of yield today in gains with the giant runup from over the last month or two.
10Yr T yield & US debt….
After the Fed’s 50bp cut, the 10Yr yield continues to rise, now 3.8% — The US national debt is now 35.4T = 269K taxpayer = 105K per citizen & annual US budget deficits are exceeding 2T each year while our interest payment on the debt = US defense budget (1 out of every 5 tax dollars going to debt service)…maybe investors will demand much higher yields in the future for our increasing debt risk as nobody knows if and when the lights will be turned off at the party IMHO…
I demand higher interest rates from the US Treasury! Especially with respect to short duration debt. In fact, I am humbly begging for continuing resolutions from both the House and the Senate that establish a 4% floor for all US Treasury debt held by US citizens above the age 70.
GECCH is trading today. Ask 24.83 Bid 24.84
Cion incoming
https://www.sec.gov/Archives/edgar/data/1534254/000141057824001629/tmb-20240614x424b2.htm
The price talk is 7.50% on the Cion
Cion prices $150 million at 7.50%. To me, that appears to be very expensive for the buyer — but what do I know?
https://finance.yahoo.com/news/cion-investment-corporation-announces-pricing-222000581.html
New Cion 7.50% note trading at $24.97 bid/ $25.05 asked. Anybody have any idea of what could be used as comparables? TRINI?
The problem is it can be redeemed at any time for $25 after 2 years. That’s the problem with all these BDC bb’s recently issued. What your getting here is a 7+% for 2 years, then your money back if interest rates are significantly lower then. I’m not interested in any of these.
Waxing poetic for a moment………
One of my favorite quotations is:
“Ask not for whom the bell tolls, it tolls for thee”
Love the irony and insight in that saying.
Anybody notice that the 10T interest has ticked up almost every day since the Fed announced its 50 bps cut?
The media churns daily on the huge benefit coming from falling interest rates. They finess/don’t understand that the Fed only controls short term rates.
Supply/demand determine long term rates.
Every politician – especially those running for office – is promising more benefits and lower taxes.
Deficit funded by more debt.
Meanwhile, US debt just exceeded 100% of GDP.
And shows no sign of slowing its ascent.
Ask not for whom the bell tolls……
Totally agree. The debt and deficits don’t matter, until they do. So the question is, are you hedging in any way?
Rocky
Hedging… such a big question.
I see two main investment risks staring at me:
– Recession/geopolitical shock taking the overvaluation out of the stock market (and weaker prefs as well).
– Inflation/ bond “vigilantes” making long debt harder to sell, driving up rates.
If those are one’s fears, how to hedge?
a) Don’t buy stocks or long bonds at today’s valuations.
b) Continue to weed out potential credit weakness and overvaluations.
c) Wait for the shoe(s) to drop.
Biggest problem is it is hard to do nothing.
I’m thinking the most likely first test is the aftermath of the election.
One more thing….
Haven’t had to remind myself of my basic investing dictum in over a year.
The market has been that good.
The best solution to keeping yourself from doing something stupid?
Don’t look at your investments on a down day.
Only look if they are up.
Sounds like a good plan. I’d like to take some chips off the table, but I’ll be paying the tax man plenty as it already stands. I have started buying some inverse/short ETFs, but probably won’t do enough to make a difference unless we get a real pullback. At this point I’d rather miss out on gains than give up what we’ve made over the past year or so.
Westie –
Great post. My guess is if the Fed truly takes short term rates down to about 3% by next Summer, the 10 year yield eventually will go back to its norm of 150 bps over and rise to 4.5%. I’m not sure any of the talking heads on CNBC understand that so many financial securities price off the 10-year. All they talk about is Fed Funds.
Things are getting crazy in some of the property REIT preferreds. I just sold nearly all my 4.25% ADC-A at a yield with a 4 handle. I had started buying this back in late 2021 near the peak of ZIRP. Got some at $15+ both in October 2022 and October 2023 to drastically lower the average cost of the position.
Never thought I would ever get to even on the position, let alone a nice gain. Nearly 3 years of dividend payments as a bonus. A big, hearty thank you to the FOMO yield chasers. Somebody needs to hit these folks over the head to make them understand that ZIRP is likely never coming back.
My ADC-A shares are finally above water too. I hope it goes up more in price so I can unload some of my higher cost shares and keep the ones I purchased in the teens. Time will tell.
It’s coming. Higher unemployment. lower earnings, a big drop in common stocks, and an end to QT. There will be a flight to safely and the 10 year will rally, regardless of the size of the deficit and the national debt.
Ed-
You didn’t say when, the only variable that really matters.
Virginia Beach, Virginia, September 25, 2024 – Cedar Realty Trust, Inc. (NYSE: CDRpB, CDRpC) (the “Company”) announced today that it plans to commence on September 25, 2024 a “modified Dutch auction” tender offer (the “Offer”) to purchase up to an aggregate amount paid of $9 million of shares of its outstanding 6.50% Series C Cumulative Redeemable Preferred Stock (the “Series C Shares”), at a price per Series C Share of not less than $13.25 and not greater than $15.50. The tender offer will commence upon the filing by the Company of a tender offer statement on Schedule TO, including an offer to purchase, letter of transmittal and related materials, with the United States Securities and Exchange Commission (the “SEC”).
The Offer is expected to commence on September 25, 2024, and is intended to expire at 5:00 p.m., New York City time, on Thursday, October 24, 2024, unless the offer is extended. Tenders of Series C Shares must be made prior to the expiration of the Offer and may be withdrawn at any time prior to the expiration time, in each case, in accordance with the procedures described in the tender offer materials. The Company intends to pay for the shares repurchased in the Offer with available cash. The closing price of the Series C Shares on the New York Stock Exchange on September 24, 2024, the last full trading day before the planned commencement of the tender offer, was $13.98 per Series C Share.
A “modified Dutch auction” tender offer allows stockholders to indicate how many shares of stock and at what price within the specified offer range they wish to tender their stock. Based on the number of Series C Shares tendered and the prices specified by the tendering stockholders, the Company will determine the lowest price per Series C Share within the specified range that will enable it to purchase up to an aggregate amount paid of $9 million of Series C Shares at such price, or such lesser number of Series C Shares that are tendered and not withdrawn (the “Final Purchase Price”), subject to the terms of the Offer. All Series C Shares purchased by the Company in the Offer will be purchased at the same price.
If, based on the Final Purchase Price, more than an aggregate amount paid of $9 million of Series C Shares (or such greater number of Series C Shares as the Company may choose to purchase in accordance with applicable rules) are properly tendered and not properly withdrawn, the Company will purchase shares tendered at or below the Final Purchase Price on a pro rata basis, subject to certain conditional tender provisions. Stockholders whose Series C Shares are purchased in the Offer will be paid the determined purchase price in cash, less any applicable withholding taxes and without interest, after the expiration of the Offer.
The Offer will not be contingent upon the receipt of financing or any minimum number of Series C Shares being tendered. However, the Offer is subject to a number of other terms and conditions, which will be described in detail in the offer to purchase for the Offer. Specific instructions and a complete explanation of the terms and conditions of the Offer will be contained in the offer to purchase, the related letter of transmittal and other related materials, which will be mailed to stockholders of record promptly after commencement of the Offer.
While the Company’s Board of Directors has authorized the Company to make the Offer, none of the Company, its Board of Directors, the Company’s officers, the information agent, or the depositary makes any recommendation as to whether to tender or refrain from tendering Series C Shares or as to the price at which to tender them. The Company has not authorized any person to make any such recommendation. Stockholders must make their own decision as to whether to tender their Series C Shares and, if so, how many Series C Shares to tender and the purchase price or purchase prices at which they will tender them. In doing so, stockholders should consult their own financial and tax advisors and read carefully and evaluate the information in the Offer documents, when available.
https://www.sec.gov/Archives/edgar/data/761648/000121390024081571/ea021551901ex99-1_cedar.htm
LONDON, Sept. 25, 2024 /CNW/ – Atlas Corp. (“Atlas” or the “Company”) announced today that the Company’s Board of Directors has declared cash dividends on its preferred shares…
https://ir.atlascorporation.com/2024-09-25-Atlas-Declares-Quarterly-Dividends-on-Preferred-Shares
Top 10 MMFs today…
1. VUSXX – 5.13%
2. GABXX – 5.13%
3. AMAXX – 5.10%
4. VMRXX – 5.00%
5. VMFXX – 4.98%
6. DTGXX – 4.92%
7. IDSXX – 4.91%
8. SWVXX – 4.88%
9. TSCXX – 4.87%
10. FZDXX – 4.85%
Guess the fun is over, FZDXX below 5% now. My $25 callable preferreds still
Do. Thanks for the list as usual.
“OCCIM” incoming
https://www.sec.gov/ix?doc=/Archives/edgar/data/1716951/000171695124000074/ck0001716951-20240923.htm
https://www.sec.gov/Archives/edgar/data/1716951/000171695124000076/occiseriesflaunch497adsept.htm
Pricing on this one is really interesting and should be very informative. I’ve been buying the series E (OCCIN) as it has a good overall return as it pulls to par over the next 2 yrs. If the new shares price well below the recent EIC/CCIF listings, their call provisions/timing/YTC will be worth reviewing.
OFS Credit Company (NASDAQ:OCCI) priced an underwritten public offering of 1.04M shares of 7.875% Series F term preferred stock due 2029 at a public offering price of $25.00 per share
https://www.sec.gov/Archives/edgar/data/1716951/000171695124000079/occiseriesfpreferredstockf.htm
A cursory look at OFS shows them paying out more in dividends than they are earning. I’ll pass on this one.
SA has a 9/8 article saying the div is well covered. (FYI-DYODD)
LIBERTY and CHARTER COMM news I guess?? noticed LBRDA and LBRDK moving after hours and of course am long a good slug of the 7% pfds, LBRDP like many; guessing some ‘combo’ has been proposed and I saw nothing about what is happening on the pfd ‘P’ shares. Malone always up to something.
I mean the P were essentially Charter shares anyway. Guess we’ll see how this goes. Bea https://finance.yahoo.com/news/liberty-broadband-submits-counterproposal-charter-201500188.html
Thanks, I was wondering what was going on with LBRDP. It closed around $24.25. I had a GTC sell on at $25.89 and it got filled just now in extended hours. It looks like around 600 shares traded near that price. The ask now sits at $25.05.
It appears in the prospectus that the preferred shares may have conversion rights to the common shares. It appears that the common stock after hours has gone up from 61 to 72 with more room to grow since yahoo finance reports a stock exchange of .28 shares for each share of Charter which is around 332 which would make the Liberty shares worth approximately $92 up from the current $72. The conversion rights if they apply to the preferred may increase the price of the preferred. Everybody should do their own due diligence in this transaction. Look forward to other comments on this transaction. Thanks Tim for the referral to this preferred stock several years ago. Donation forthcoming.
oh wow – I have a nice chunk of it I have built over time and just added as late as last week. Going to be interesting to see how this plays out over the next several days and weeks. Even if not convertible, a merger will certainly shore-up the preferred with decreased risk
Keep in mind this is a counter proposal, not something that’s agreed upon and it’s not projected to even happen until 2027….. I have no opinion and have never owned either one….
Yup – I get that. I have no plans to sell as my basis is under $23 and it is paying a nice, reasonably secure yield. Of course, if it did get converted to common, I’d likely be happy and sell at that point.
looks like from early trading in the Liberty pfd anyway it has settled down to around 24.60 with the realization nothing changing anytime soon as 2WR mentioned; fine w me as I have about 4% in it total between taxable and RothIRA happy to collect the $1.75/yr on it for sure. Rates keep going down this could be at 28-29 on its own anyway. Goes xd this week.
Agree – I have added to the position this year and reached the 1000 share threshold last week – avg is just a smidge below 23. If nothing else, a merger will strengthen the position from a risk standpoint and provide a nice more-than-7% yield-on-cost over time – I entered more thinking exactly that we’ll see it trade 28-30 range at some point.
That’s right, 2WR – the original proposal, from Charter, was .228 Charter shares, and now LBRD has countered with .29 and a close possibly as late as June ’27
I was just reading the prospectus from quantum and I did not get the impression these preferred could/would be converted into common. I get the impression they would just switch over to Charter if anything. Then end up getting called when they want to. I do not even see change of control protection causing them to be paid out immediately either.
https://www.sec.gov/Archives/edgar/data/808461/000110465918015741/a18-7767_2ex3d1.htm
LBRDP is not convertible, just a plain preferred with a $25 call price. It may go up as the fed cuts rates but it’s not linked to the price of Liberty’s stock price. I’ve held couple hundred shares for a while through the ups and downs I’ll keep holding for now.
IMHO the “liquidity premium” for NSA-A over NSA- B seems excessive. Am I missing something?
I also cannot understand the drop from 26 to where it is now. would be interested to hear any comment
Quick look on Quantum the only thing I see is A is past due on the first call date of 10/11/2022 and B is all the way out to 2043
Could just be with expectation of rates falling the A gets called at par soon, but who knows?
My guess is it is a mispricing if you want to call it that, or an opportunity. Unfortunately, both are what I what consider thinly traded. NSA-B is even more thinly traded. So that is probably the primary cause.
I bought a bit over 1k shares of the B at $22.44. There is definitely a large seller of the previously owned private placement shares who is willing to take a certain price to get out. I’m willing to take that chance as the A (same coupon rate) has buyers almost $2 more a share. Unless it’s been leaked that they are calling A (which I doubt), this makes no sense.
I assume there are some big sellers who want out since it became public. It appears like a good deal to me, and I have been buying an oversized position. I guess time will tell as the selling pressure dries up. Good luck to us!
I sold the NSA As for the Bs for a $2 gain too in the RothIRA, little bit of selling in pfds today it seems but of course they had run up
Is NLY preparing for a call on NLY-F, G, and I? ANNALY CAPITAL MANAGEMENT INC FILES FOR MIXED SHELF; SIZE NOT DISCLOSED
https://www.sec.gov/Archives/edgar/data/1043219/000110465924101703/tm2424442-1_s3asr.htm
Use of Proceeds statement looks like they’ll buy things, after corporate uses ( if that includes calling F,G,I ?), then possible? Doesn’t sound like it.
Jimmy ; this is a shelf offering ; meaning they have authorization to issue more stock ,but dont have a time frame ; also NLY frequently
issues shares of the Common, and trading at a premium to book value ($19.25)
this would be a propitious time to do so.
Ted, ATM ( at the market) allows a company to issue new shares as needed. There are good and bad to having an ATM program in place. Common stock doesn’t bother me but If you have this in place for a preferred then the company has to have the income to cover the larger cost of paying the dividend.
Codi arb
Why would anyone pay higher for CODI a than b or c? a has a Lower coupon and is not cumulative while B or C are higher coupon and cumulative
makes no sense to me
$15K winner and a $15k loser in a single trade! Take a look at the ZIONL chart for today 9/18. It closed yesterday (9/17) @ 25.90. The first trade today was 6,479 shares @ 28.35 at the exact open of regular trading hours, 9:30:00 AM Eastern. Looks like somebody had a “market” buy order and it filled before the system had stabilized with more reasonable ask prices. You see this on occasion, but usually for smaller quantities, say 100 to 200 shares. Unusual to see that large of a block.
Understand that in our all electronic trading, bids and asks can come from roughly 50 different exchanges or electronic networks. Like NYSE, Nasdag, ARCA, etc. All of the bids and asks from the different exchanges are supposed to come online precisely at 9:30:00. If the timing is off by say 1 millisecond when all of the bids/asks get combined, you can get crazy prices like this for less than 1 second before things go back to normal. After this trade, the price went back to normal and closed the day at 26.03, so arguably somebody overpaid by about $15k. And that is enough to buy a few steak dinners, even in NYC.
BOTTOM LINE: is that you MUST use limit orders even when your order is routed for “regular trading hours.” In this case if the order was submitted literally one second later, the damage would have been far less. Also a perfect example that never would have happened when specialists on the floor of the NYSE handled all of the trades.
We were NOT involved in either side of the trade in any account.
Hi Tex,
Your read of the situation may be correct.
Another read is that this is possibly a forced buy-in on a short. The interpretation of REG SHO has been that a fail to deliver has to be bought in by 9:30 ET or may be done via a “guaranteed VWAP” order at 9:30. There are many securities where a guaranteed VWAP can’t be done as volume isn’t high enough on a daily basis for a broker to permit the order type.
Way back when I arbitraged preferreds and baby bonds, I had a 25,000 share fail on a thin preferred and I kept failing for days and weeks until I could cover the whole thing, but I shudder to think where it would have filled in the REG SHO era.
There’s a profitable strategy where you develop a program that reads the imbalances at the open, the indicated auction price, and enters opening-only orders to try to capture the other side of the trade. That will absolutely be happening at the open and close today , as its a triple or quad witching PLUS rebalance.
A few years back SHOP printed up $100 on the closing trade, from 685 to 785 on a 300,000 share imbalance. I know someone, not me, who can offset or even increase an imbalance by hitting a hot key that sends an order to a floor broker on NYSE. With NASDAQ the close is time sensitive to when the trader enters a MOC or LOC order, such that a better price is not necessarily entitled to a fill at the close. Most brokers block these trades in the final 2 minute, which ironically makes things better for those who can still trade. I know people whose entire annual income is made on quad witching days. I’m too slow, too old, and not at all automated.
LT, thanks for the alternate possibility of a forced buy in at the open. IB shows a hard to borrow rate of 180% this morning, so it would have been a very expensive short to hold overnight. I think this makes the odds of a SHO forced close at the open pretty low. It does add another:
BOTTOM LINE Two: do NOT short illiquid prefs/babys unless a) the hard to borrow rates are low and/or b) you are sure you can quickly cover the short.
BTW: Years ago, I published the highest borrow rates of prefs/babys here on III. I recall some of the rates were pretty insane like this one today CGBDL @ 417%!! My partial look this morning show 32 issues @ >100%.
TEX,
I stopped arbitraging preferreds when I realized I was being scammed. The preferred would be easy to borrow but as soon as I built a position of 5000 shares or more, it would become impossible to borrow and have a very high rate. It took me awhile to realize what was happening was the other side of the trade would move their shares from a margin acct to a cash account and that forced the buy in
LT – There should be a nostalgia thread here as my peak trading days are way past now as well. The best free $$ printing money arb I ever personally experienced was just over two decades ago when we came off fractions and all equities went to decimals.
There were numerous ECNs that emerged and on high liquidity, high volume trading equities you could have a field day flipping thousands of shares for a penny or two in a matter of a split second.
I was doing anywhere from 500K-1mm shares daily. Those were the days. But short lived because only a few years later superDOT morphed into Hyrbid and this killed everything for retail/prop traders.
PSEC
Talking about PSEC being sketchy on Bloomberg with pay in kind. Not Good.
DANGER WILL ROBINSON
Thanks NWGG First RC now PSEC . Nice of Bloomberg to confirm what we have been talking about here and reading over the last several months.
Post another of my buys this past couple weeks. Bought BBDC my first and only buy in BDC land outside of the preferred sandbox.
@CM PSEC
They also referred to financing the clown show with the EVIL baby bonds. Could be a knee jerk reaction down on this clown show when wheels fall off. This could manifest into some ugliness spilling over into Priority? Who knows.
Place your bets….
PSEC
Priority Pfds
I sold my 272 shs PRIF-K at a loss today. I rolled the money into ECCPRD @ $19.66 sh. I got more shares, better CY, monthly payer, better asset coverage. I lose $10.75 a month income for the privilege, meh.
2WR has hated the PSEC Prif from the beginning. I originally that he was wrong, but his voice was ringing in my ears sell sell.
I am pretty much done with these numnuts. I don’t want to be the last one out the door on this one.
YMMV DYODD
Charles et al
Re BBDC
A few weeks back one of our good loyalists posted a link to the Raymond James Current Pricing Summary of its weekly BDC insight.
I refer to that before any buy/sell of a BDC pref or BB.
Especially the Coverage ratios
BBDC’s 153% is golden
Recent issuer GECC’s is a not-so-golden 91%
Westie, can you re-post that link please. I think I may have seen it but forgot to bookmark it. These days I need to print it or bookmark it as I mentioned the flood of info is like trying to drink from a fire hose.
Charles,
I think this is the Raymond James weekly summary of BDC’s.
https://www.raymondjames.com/-/media/rj/dotcom/files/corporations-and-institutions/investment-banking/industry-insight/bdc_update.pdf
I am curious as to what anyone thinks about the mass exodus of Barings employees earlier this year.
https://www.privatedebtinvestor.com/barings-secures-injunction-against-former-employees-and-corinthia/
Voner, I think that was discussed earlier here or elsewhere and there was a lawsuit I believe over confidential information that was used by the former employees or their new employer. This is just a recollection and I don’t know how that has turned out. You look at chart history which is no indication of what can happen in the future. they seem to do good in a lower rate environment and steady in a higher rate one.
Thanks Voner. I bookmarked the entry page from RJF this time.
another helpful site for BDC assessment is:
https://cefdata.com/bdc/
if you click on a ticker symbol you get more details, incl. the div coverage ratio, e.g.
https://cefdata.com/funds/arcc/
I agree in regards to staying away from PSEC’s common and preferred issues. However, I think the bonds are pretty safe because PSEC has $5.3 billion of equity on assets of $7.85 billion. Assets would have to drop $5 billion or 67% in order for the bonds to be in jeopardy. I have
1.7% of my port in PSEC bonds with a YTM on cost of $7.9% and recently they’ve surged in value. Hope I’m not missing something.
Anyone holding GAINN may want to extend the maturity and switch to GAINZ to get a bump up in YTM of a little over 1%.
I think I might cash out of GAINL which will almost certainly be called on 8/1/2025 and take my gain and put it in GAINZ which seems likely to survive until 11/1/2028. I would end up with a lower yield but have a $1.30 gain now and a $1 gain in 2028.
Or put the funds somewhere else.
LNC-D:
Moody’s affirms LNC ratings. Outlook remains stable.
https://www.moodys.com/research/null-Moodys-Ratings-affirms-Lincolns-ratings-outlook-stable-Rating-Action–PR_1000010215?cid=GAR9PTU7VKT2671&emailToken=eyJ0eXAiOiJKV1QiLCJhbGciOiJIUzI1NiJ9.eyJVc2VySWQiOiJkYzVkYjczMC01NTBiLTQ3ZjctYjhjZi05NzY2ZjAxZmU0MzMiLCJEb2NJZCI6IlBSXzEwMDAwMTAyMTUiLCJjcmVhdGlvbkRhdGUiOiIyMDI0LTA5LTE4VDE1OjEzOjAwLjIyNDI1ODQtMDQ6MDAiLCJleHAiOjE3MjY5NDU5ODAsIlVzZXJOYW1lIjoiY3BhbWlrZW1iYUB5YWhvby5jb20iLCJVc2VyVHlwZSI6IjIifQ.QEmUPxlty5tWqHK3kL9-RLWMCTKw3dv7kL6riy4LQ7M#0572b961dceedc105347b4ba6f05cd6f
PRIF-H has jumped 97 cents today to $25.23. Why??
Wilson – Total volume on day is 100 shares that printed at that price. Most likely someone used a market order and/or if you look at where that security trades, it’s always with a gigantic spread on super thin volume; presently 65 cents on bid vs. ask as a seller just stepped in now at par.
Thanks, theta. Looks like we were both typing replies at the same time.
Never mind. Volume: only 100 shares sold. Bid now much lower. You can guess what happened : )