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TPGXL 6.95% Moody Rated BAA1 and Fitch BBB- has been trading with low volume. Bought a few shares in retirements accounts
Junior subordinated note. Please see QNL.
https://www.quantumonline.com/search.cfm?tickersymbol=TPGXL&sopt=symbol
BTW, has anyone saw or heard from Gridbird?
From Morningstar:
“TPG Inc is an alternative asset management firm. It invests across five multi-product platforms namely Capital, Growth, Impact, Real Estate, Market Solutions, and TPG Angelo Gordon. The company focuses on large-scale, control-oriented private equity investments.”
John, That is a good buy if you got that near its low today
Timely alert. TPGXL now under par all day here.
I bot RNR.PRG 4.2 perpetual at 15.88 6.6 CY .. the RNR-G/VCLT pair is near 3 year low was 3 sigma rich in march 2024 and now near 3 sigma cheap …several articles on S/A on RNR
Big price drop for RILYG 3/31. Anyone how bought then is doing ok. Up over 8% today at $11.16. Still lower then the $13 it was a few days ago. I don’t own any.
SCHW-D
Charles Schwab Corp. 5.95% perpetuals now trading just under par.
PRH – Prudential 5.95% BBs just under par.
MS-I, Morgan Stanley 6.375% perpetuals trading under par.
HIG-G Hartford 6% perpetuals now, you guessed it, under par.
Nothing really that unusual for end of month and end of quarter volatility.
Huh?…we are at near multiyear lows on lower coupon preferreds vs VCLT
Love these and was scooping some of these up yesterday. Lots of MS issues are near par or below. I’ve been favoring issues with the lowest coupons but nearly the same yields in hopes they aren’t called later.
MET.PRF is at 6% yield with 4.75% coupon
WBS.PRG, WBS.PRF are at 7% and 6.5% yield approx now.
Yield Hunter,
I am setting up my wife’s retirement portfolio and I am using the same philosophy. Buying high quality, low coupon issues currently paying around 6% with the anticipation that they will never be called, and as such, my wife will not have to make many reinvestment decisions.
The negative that I have noticed is that when interest rates rise, these issues have a disproportionate drop in value. Given that there is no plan to sale any of these issues, I assume that they will have a corresponding increase in value when interest rates drop.
LarryL, thanks for sharing your thoughts. I also have bought a bunch of high quality perpetuals for my wife’s retirement account. The weak point I see is inflation risk: if inflation gets to 6%+ a year, then the account will be losing purchasing power. Curious to hear opinions on that risk and how to manage it.
Maybe Tim will chime in but I think the way he handles it is with some proportion of large proportion of term preferreds that must be called. A portfolio could consistent of some of these high quality and then could have some with the fixed + SOFR component and then stagger some maturity dates.
I’ve been playing volatility a little bit and when rates rise I buy these and then when rates drop I sell off my least favorite or lowest yield. Some economists are calling 2025 the year of vol.
The term preferreds would require some degree of work for your wife but the combo fixed/floating could be a partial solution.
Yield Hunter – since my target is just 6% (although I would love 7%) I can be conservative (as I define it) and buy almost all term preferreds, relatively short dated baby bonds and more recently purchasing some fixed to floating issues that I am confident will be call in the next short while. All these in theory have a floor under the share price ($24.50 or so) I don’t really do much trading to capture movements (i.e. dividend captures etc). At this time I balance all the term preferreds and baby bonds and preferred with a pretty large portion of money markets and CDs in the average area of 4.25% so to get my 6% I need about 7.75% or so off the term preferreds and baby bonds. I don’t personally worry about laddering anything at all. Now just recently I started to add a few high quality low coupon preferreds to the mix–some I think have a good shot at doing a 5-15% capital gain in the next year–we’ll see.
LarryL,
For diversification, you could consider adding in some “perpetual” floaters with 4% min. Only a handful to choose from, I like/own MS-A, USB-A, BML-L, and GS-C. Current yields meet your criteria, can’t go below 4%, and the shares won’t drop in value as much if rates go up.
good comment low coupon preferreds have got slammed vs VCLT as we are nearing 3yr lows on the pair.. this is consistent with their positive convexity which exaggerates interest rate moves in either direction but has been disproportionate
They are very much like bonds in that way so it’s all about our outlook. It definitely seems like Trump wants short term rates lower and if things stabilize that could happen and the value of these could rise.
We are just looking for reasonable cash flow though, right? I like lots of free cash flow and if they pay a common dividend that can be cut before they cut the preferred. Lots of these are cumulative too. I didn’t have any but the PCE shares stopped paying after wildfires for a few years but they caught back up when they started paying again. Pretty great.
Is MS-I floating? The Quantum Online site has a strike through on the floating info so not sure if it is and if so what the rate/formula is.
Franklin,
MS kept the fixed coupons on these ones: MS-E, F, I, K, and M.
https://www.morganstanley.com/press-releases/replacement-rate-for-u-s–law-governed-u-s–dollar-libor-linked-
Thank u, mbg!
Didn’t receive a call notice from Schwab for MBNKP, so it will float on April 1 at 3mL + 6.46%.
Tim gave it a D for dividend safety, however the chart of parent MFIN looks pretty good of late.
Excellent. I had been holding for this outcome.
11% is a fair reward for the risk on this issue.
Futures plummeting ahead of last day for Q1 trading.
DJIA -870
Nasdaq -617
S&P -136
FTSE -17
CAC -85
DAX -208
EURO Stoxx -48
NIKKEI -1,100
HANG SENG -540
VIX + 7.25%
I’m so annoyed right now because thanks to the all the chatter on Gold here recently, I was so close to loading May futures contracts on Friday late afternoon but ultimately held back. I’m sure those contracts are going to be up significantly.
Theta, where can you find us futures pricing? Thought they opened at 5 pm et on Sunday.
Maine – Great catch thanks. My buddy texted me that info and with the time difference, he’s way ahead being overseas and I completely forgot that we aren’t past 5 yet. So those first 3 US quotes above are totally stale. Good chance they will be worse then, hopefully not.
No problem.. it certainly feels dark and gloomy out there. I hate politics (both parties) so I try not to pay attention too much, but markets are certainly manic lately. Short term investing is almost always difficult to predict, but I feel that’s it’s even more difficult lately.
It’s been a fantastic run w prefs / credit, so trying to stay higher quality and maintain some semblance of dry powder, although that’s proving difficult.
Maine-
Not sure if this is the same or close, but it’s active on Sun too:
https://www.cnbc.com/pre-markets/
Not true . At 8:30 CT futures are down 165
Why post this!
It was an error due to time zone differences. I received stale data from overseas, also forgetting we weren’t past 5PM eastern here either. I can’t edit it now or delete. Maybe Tim can if he sees this. It was pointed out/corrected by Maine also, a few posts above yours. Cheers.
Who knows by 4pm those awful numbers may be correct.
Dow down 5.15% for March. The market hates tariffs. Good fortune.
KingCash – My apologies. With all the crazy headlines today, I just kind of panicked and one of my trading buddies whose been right all year and is super long gold futures, in my frustration I just rushed to post. I am missing out big time on the volatility/commodities long trade this past week and a few weeks back I was looking at some EOY puts inventory on the S&P but didn’t pull the trigger. It’s now eating me up alive inside. Won’t do this again.
WRB up >7% today, WRB-E 21.96, 6.49% BBB- , call 2023
I don’t own this – so far
good comment wrb-e/vclt pair has gone from 2 sigma rich in March to 3 sigma cheap today (3yr horizon)..this is typical for lower coupon preferreds,,,would expect continued underperformance targeting december 2021 lows on pair ,,on absolute price basis would target near 21.5
NEE-PN finally hit my bid at 22.79 which I had forgotten about. Entered a bid for a little more at 22.76. Sold out of it back in October but now at around 6.2% I’m interested again.
good comment.. nee-n/vclt pair nearing as many low coupon preferreds are 3 yr lows (underperformance)..was over 2 sigma rich on september 2023 to near 2 sigma cheap today (3yr horizon) ..on absolute price basis would target near 22.13
Just a note that credit spreads have widened a little, but if we tank later in the day I want to be short HYG,PFF, and MUB . I’m long higher quality in each sector, and am short small quantities of the first 3.
I think there are too many people who have a resistance to shorting anything.
I’d buy puts if I really knew what was going to happen…..the only time that worked for me was the GFC
I bought puts for hyg but the spread is weird and I had to test it at each nickel to get it to fill. it won’t cover much of the paper loss for all the hy component of the portfolio, but I’m buying more hy on the way down anyway since it’s reasonably clear to me that there won’t be anything on the short end of the curve at some point in the future. Do you match the position sizes so you fund your long treasury position with the proceeds from the short?
jb,
No, I am making a bet credit spreads widen.
good comment ..on absolute price basis closes below following levels are ominous
PFF 30.65 (already happened)
HYG 78.09 (about to happen)
MUB 105.47 (already happened)
ABLLL looks to be on sale again. It had an absurd run up last December, and now is back under par. The parent company’s basic plan is to buy up life insurance policies for cash at discount, and then hold them until the policy holder dies.
It’s a 9.875% coupon, callable in 2027, maturing in 2028. Current yield is a little over 10%, YTC is about 11%, YTM is in between. Do your own research, of course, but I think they are a bargain. I sold it too early in the last run up to fully benefit and just bought back in now.
I noticed they had a super quarterly which got me looking at the numbers…. a tough one to analyze because on the surface, they look pretty good for what it is, a 9 7/8% coupon senior note trading at a discount…. But then I saw what a gigantic amount of assets show up as good will…… yikes! Certainly not an easy one to figure out.
2WR I remember reading the first generation of insurers who came up with this business plan ran into problems. Abacus claims to have solved the issues that led to problems and companies getting out of this business.
SPMC, parent of SPMA, down 4.4%. Chart looks bad. BWDIK?
IBRX up 12.5% !!!!
Westie?
Back away from the roulette wheel. Don’t get so excited.
Quarterly report and investor day is coming up soon here in April.
Ask yourself, do you buy on the rumor and sell on the news? Especially when talking bio techs.
#1 sell and book a profit.
#2 sell 1/2 and book a profit and keep the rest depending on your cost.
#3 hold long term? Or trade in and out.
Points. Majority of the shares held by the CEO, lots of debt mostly IOU’s to the same CEO who has taken more shares as pik. On the public float lots of institutions own, but not large quantities. Still losing money and has an ATM program in place so will probably need to borrow more money or issue shares. Lots of potential coming up. Approval in GB and EU, allowed by the FDA to distribute a ingredient that MRK can’t provide enough of so there’s a shortage. Has their own plant in New York to produce the compounded drug. Potential approval for lung cancer. Besides the approval they already have for bladder cancer. Agreement with a chain of urology centers to use their drug. Tests on going for prostate cancer. Original focus 3 years ago was a treatment for pancreatic cancer.
So potential long term.
I apologize if I missed any points.
I only have a passing interest in the biotech space, and have placed a few losing bets. Do either of you have a recommendation for some generic overviews of how these orgs get their feet wet before they solicit the public for dollars and how those early securitizations happen? I’m aware that that part of the market has been more dormant than usual, and obviously know a bit about the big flops like SAVA, etc.
A local organization asked my partner and I to do a little investor / researcher education on the matter, and I’m looking forward to working on the project, but hoped that some of you might be kind enough to show me the literature that made the biggest impression on you….it’s not lost on me that the university (hospital / teaching hospital) to industry pipeline takes on a lot of different forms, but since all of you have so many years of experience on the investing side, perhaps you’d share anything that resonated with you…
always enjoy the commentary here, and may your riskier or less risky bets pay off (I’m starting to sell SGOV and buy some duration but slowly slowly …. KRP for the win too!)
jb, can’t help you with anything that would give you an edge. Even the experts like private equity can’t pick winners on a consistent basis.
Even the stock above being discussed, I ran across a stock investor who was a urologist and he posted he thought the treatment held promise but he knew nothing about judging if the company would be a successful investment.
I am always looking for a long term hold, but I’m willing to sell if a stock gets overvalued to the point the stock price is ridiculous.
I’m on this site because I learned after years of investing that income is better than chasing growth stocks that don’t pay a dividend.
I’m not even that interested in taking positions myself, I’m mostly just curious about the funding funnel and the phenomenon that lead to the public investment for the sake of the research —> industry pipeline itself. I mean, I know at some level that the addressable market has to be evaluated, the treatment (or method or bio-IP) has to be reviewed, etc…but it would be nice to read some stories about how the researchers slogged through the decade (??) or so to get to the xxx million dollars needed do the trial…more of a capital markets look less of a gambling look.
jb we could be looking at a lost decade in research without gov. spending. People today want instant results which is why there is so much love for AI.
1800’s was about wars, industrial and colonial expansion and exploration. people talked the government into spending on a lot of this and it was doable as wealth grew to support the government growth.
A group of scientists spent a decade studying DNA floating around in the ocean and matching it to every plant and animal living there. They didn’t get rich from doing it, probably developed skin cancer from exposure to so much sun. They were doing it because they love what they do. Where did all the funding to support this research come from? I suspect partly from the government. We have dumbed down what we teach in schools or allow, so we have several generations that don’t believe in science and question what this research accomplished and the waste of money spent on it.
Only it wasn’t a waste. They discovered an algae that is a symbiotic host to a simple cell that makes nitrogen out of the air and water for the algae and releases excess back out into the environment. The article I read said one use of this discovery would be for land based agriculture to engineer plants to make their own nitrogen so we can stop dumping tons of fertilizer on the plants.
Back to your question. The workings of how money is raised publicly to fund this research. I suspect this goes back to the organization who asked you and your partner to research how they can raise funding.
This site is more for personal investing for retirement and saving for retirement. The only person here who could possibly advise you is Private and I don’t know how to get a hold of him, although there may be others here who can help but they have only shared their interest in personal investing.
You might want to start your search over on the Silicon Investor website.
August West would be good as well. If my memory serves me, at one point he was the CFO of a biotech company in the Bay area. He resurfaced here and posted not too long ago.
There is a biotech forum in Silicon Investor that may be useful (biotech/medical):
http://www.siliconinvestor.com/subject.aspx?subjectid=60340
Investor Village also has a biotech forum:
http://www.investorvillage.com/smbd.asp?mb=58
and an IBRX forum:
http://www.investorvillage.com/smbd.asp?mb=20738
thanks for taking the time to write the comment. I’m somewhat connected to the local startup / VC culture and have a sense of what they like to fund and at what size of stake, but also get the impression that the trials themselves run in the mid nine figures and the investors who buy the ipo may only do so if they have a sense the NIH (et al), were going to pony up a massive sunk cost in a grant form to make the risk worth taking. Your general purview of ‘what government funds and why’ seems pretty on point to me, and I tend to think of the government / private investment machine as a pendulum that swings one way or the other at different times (rural electrification, pentagon/nasa developments turned over to industry, whatever the case may be). The organization that asked us to inform the researchers about capital markets ponies up a decent chunk of change to fund the research, but certainly can’t throw it’s weight around like the feds do, did, or might not do. This, and I recognize that not all investments in science are commercial enough to justify wall street involvement, and should probably be understood as Adam Smith’s ‘Political Economy’ and not as tools to create market returns. III, come for the hot takes on the preferreds, stay for the collective wisdom of a nice group of folks
Jb glad to meet you! Even if it’s only on this forum. I appreciate your posting on events related to history. The understanding of the universe of interconnected things.
Oh, I think we could manage to cut some gain of function funding and live without the next lab created, pandemic level virus.
I also think it is insulting and condescending of you to pretend that anyone who objects to a lot of the obvious waste or propagandizing is due to their education being dumbed down, or their lack of belief in “science” as if such a thing is synonymous with whatever the government is funding at any given time.
You should know better than to act like this. It is not appreciated, and it will not be allowed to pass unchallenged.
Best to you Scott on your investments. For a change you are the one who turned this into a political statement.
Bye
Bio-medical research is a low probability endeavor, with a huge potential payoff. It is best suited for the public dollar, not the impatient venture capital dollar. The best strategy is to fund many projects with small amounts, thereby maximizing the chance of getting the prized result, which is almost never apparent at the outset. Most biotechs will burn investor capital without producing a valuable product. I think the best biotechs are structured to have many irons in the fire — Roivant comes to mind. Still, not the best investment, IMO. It is far better to buy the companies that have a stable of successful products and are exploiting and buying new emerging technologies, such as Vertex.
And I like and own both, with VRTX being the much, much larger position. But ROIV is, to me, an investment house (consolidator) of promising startup bio’s and will have many losers but the few big winners will matter. I am very bullish on that. They also sell before “big wins” to keep funding and cash flow stable. A good formula, IMHO. I could see ROIV once being a company to fund and help a budding VRTX. I had to reply when your post listed two of my fav stocks…
IBRX like a bouncing ball. Big bounce up yesterday, down 9% today. Looking at the chart down over 60% from last May. But where does it go this year and next?
Dan and Westie, felt nice to be rich even if it was just for one day.
Dan, you’re asking questions, but I tried yesterday to explain.
Early bio tech is a trading vehicle. Not a longer term hold. There are too many day traders and professional traders working for funds or traders like Lt.
I like you clued in on the chart. You need to match the news to the chart.
#1 around August or October 2023 the FDA issued a CRL
(A complete response letter (CRL) is a notice issued by the Food and Drug Administration (FDA) indicating that an application will not be approved in its present form)
In IBRX’s case there was no issue with the drug or the treatment, no side effects requiring additional testing. ( i.e. going back to the drawing board)
There was a problem with the manufacturing process that needed to be fixed to get approval. Company said X amount of time to get the problem fixed and re-apply to get FDA approval. Time marched on and investors got nervous with stock price going up and down. (trading, get it)
Finally application re-submitted. FDA saying it is allowed up to 6 months to make a decision.
#2 April 2024 rolls around. Look at the chart and see at the end of month the FDA finally issues a BLA ( Biologics license approval)
#3 the excitement dies down when people realize that qtr. financial report doesn’t include a full 90 days of sales and company is giving away treatment to induce sales and cash is running low so more money is going to be needed. You get bloggers and traders making and posting speculations trying to manipulate the stock over on SA. Even guessing total sales over life of patent.( give me a break)
#4 announcement trying to get approval of insurance companies to cover treatment and the get a J code assigned so Medicare will allow payment.
#5 Nov. look at chart. Stock tanks when no investor day is announced and sales are not growing as fast as investors hoped. Everyone wants a rocket to the moon, not a slow and steady wins the race.
#6 J code is approved first of the year, but this doesn’t have much of a reaction on the stock price because no announcement of how sales are doing. In the meantime other news such as possible use for lung cancer, partnering with another bio-tech to study this, possibility FDA may approve off use for lung cancer without going through a complete separate license application. FDA granting approval to use a different form of BRG manufactured in India and even approval for IBRX to sell this separately to urology cancer treatment centers since Merck can’t supply enough.
#7 Next possible catalyst upcoming, release of the quarterly report and stockholders meeting ( which has been announced and not cancelled like the one in Nov.)
Ok folks, I laid this snake out for you. Place your trades. I should have sold yesterday, locked in some gains and replaced shares I sold today. Why didn’t I do it? I’m looking at odds of getting caught trading too close to the April report and investor meeting.
Again with the advice. This is for trades until it becomes an established company. Dr. Soon owns 80% of the company. He sold his first company and he is 72? will he sell this one? anything is possible, but I think this is going to be his legacy. Also, in a race don’t forget to look over at the competitors in the race and see where they are at.
OK enough sharing and speculation BS
danzeb said: “But where does it go this year and next?” A rhetorical question.
We don’t know where IBRX will be next month or a year from now but with enough information we can put odds on a guess. I don’t own any but it’s interesting enough that I’m adding it to a watch list.
Thanks Charles M for the very detailed response.
Big whoop. Back to where I bought it.
What Rocks? you didn’t buy more as it went down then sold the higher cost shares when it popped!
rocks and Charles
IBRX
My initial buy was at $2.99.
Thanks to the expertise on this site – of which you two rank high IMHO – I put in a GTC at $2.70.
Which hit.
Now, like Charles says, what to do?
What the hell, if you bought a long shot horse thinking it might win.
Then it won one race and you got an offer slightly above your purchase..
Sell it?
Nah.
Ride it for a while.
Keeping in mind Tim’s comments about his biotech experience.
Interview of Dr. Patrick Soon-Shiong, the founder of IBRX
https://www.zerohedge.com/medical/existential-billionaire-cancer-researcher-says-covid-vaccine-likely-causing-surge
Two thoughts on BC-C:
– It’s going lower
– BC-B was called. Will BC-C be called?
BC Exposure to tariffs appears to be driving the common down and pulling preferreds with it. This is not new news but looks like a buying opportunity for BC-B especially with ex-div only days away.
I have a 2002 Sea Ray 185, so this is a sentimental fav for me.
XLY, consumer discretionary, has been weak.
Priority Income PRIF-M incoming
https://www.sec.gov/Archives/edgar/data/1554625/000155462525000027/a20250326-prifmnx2.htm#i7f034068e0424b1a82d800cc9523a9ad_28
that whole series trades very thin ;
Ted, I would have to deal with Nanny Fido , rated by Eagan Jones and most trade below par. telling me they are not well liked by investors especially the ones out 4 years.
SPNT-B There’s been a seller on B all day long @ 25.17….. Seems attractive to me…. 25.17 = slightly over 8% YTC date 2/26/26. B will RESET ON 2/26/26 @ 5 YEAR TREAS + 7.298 if it is not called and then will not be callable again for another 5 years…… NR/BB+ Seems highly likely to not make it past 2/26/26.
Just broke 25.17 and moved to 25.16 sales
If called on 2/26/26, would the dividend accrual for the month of February be 26/30 of the entire month?
Interesting question, GnG. I’ve never taken the time to find out how that actually gets figured for a Feb pay, no less with one 2 days before the normal pay date …… I just trust the calculator as determining it properly according to standards set by the industry. I’ve never even tested to see how what it comes up with compares with using an assumption such as yours……sounds like what you’re saying should be right.
GnG and 2wr,
From what I read in the prospectus:
1. FULL divs are calculated on the basis of twelve 30-day months, but PARTIAL divs are calculated on the basis of the actual # of days elapsed. Prospectus, p. S-13.
2. If redeemed, the final div will accrue up to the day before the call date. If the call date for SPNT-B is 2/26/26, the final div will accrue through Feb 25.
Prospectus, p. S-17.
I get a partial, final, div, accruing 25 days in February, and being called the next day, on 2/26/26.
Here’s the SPNT-B prospectus.
https://www.sec.gov/Archives/edgar/data/1576018/000110465921087047/tm2120188-3_424b5.htm#tDOSB3
Thanks mbg. If called the dividend corresponding to that last quarter should be $0.47
thats what i think as well ; have 700 @ 25.22
I don’t think these are too illiquid but the SCE are trading at higher yields today. SCE.PRL is at 7.14% right now. I own some but not a recommendation. They have the CA fire situation that they have to deal with but I do know there are some of us that think they’ll make it through.
caveat emptor
I bot fgn 7.95 perpetual at 25.78 (25.73 stripped) for 7.03 ytc 12/15/2028… the fgn/sjnk pair has gone from near 3 sigma rich in december to over 2 sigma cheap today and near all time low set near inception 12/2023
Nice trade mjtroll. For anyone that can’t pay over par in a taxable account, FGSN is a good trade here also now @ $24.60 with a 7.30% coupon.
tks.. would recommend article on S/A titled FGSN: a 7.3% Baby Bond from F&G Annuities & Life by Arbitrage Trader dated 1/27
and excerpt from it
FGSN is fairly priced compared to OTC debt but overvalued relative to exchange traded debt, better options with higher credit quality exist in the sector
because it was recently issues not enough history to make a judgement relative to vclt
why can’t you pay over par in a taxable account ?
Or COVID did it for them.
The same reason that care insurance blew massive holes in the insurance company income statement, was the same reason the viatical market tanked. People outlived the assumptions.
COVID turned the tables because it had a very high mortality rate where the patient was above 70, and also caused the death of a not inconsiderable number of people in their 40’s and 50’s.
So the life insurers felt the pain and the viatical bets paid off like gangbusters since 2020, because the viatical bets were to an age of probably somewhere around age 83-85 and when that person dies at 72-75, the return on the investment is huge.
I seem to recall some of us III’ers, including Grid, holding debt of The Phoenix Insurance Company. Moody’s affirmed its IFSR (Baa1) ratings and changed it’s outlook from Negative to Stable.
https://www.moodys.com/research/null-Moodys-Ratings-affirms-The-Phoenix-Insurance-Companys-Baa1-IFSR-outlook-Rating-Action–PR_1000011093?cid=GAR9PTU7VKT2671&emailToken=eyJ0eXAiOiJKV1QiLCJhbGciOiJIUzI1NiJ9.eyJVc2VySWQiOiJkYzVkYjczMC01NTBiLTQ3ZjctYjhjZi05NzY2ZjAxZmU0MzMiLCJEb2NJZCI6IlBSXzEwMDAwMTEwOTMiLCJjcmVhdGlvbkRhdGUiOiIyMDI1LTAzLTI2VDA4OjU4OjI5LjAzMjQ5OTQtMDQ6MDAiLCJleHAiOjE3NDMyNTMxMDksIlVzZXJOYW1lIjoiY3BhbWlrZW1iYUB5YWhvby5jb20iLCJVc2VyVHlwZSI6IjIifQ.n6o9iiEAi3IwOM1V4CADqLjMlhjIG_PWDJYxhwgxltc#0572b961dceedc105347b4ba6f05cd6f
This is good news as I have a position in this thanks to several on this site. Only problem is trying to understand their financial statements. Really could use an insurance industry CFO to comment.
Looks like the Moody’s article is about a different company, the company that issued the old Phoenix 7.45 QUIBS is now known as The Nassau Companies of New York. https://nfg.com/investor
Thanks, dave.
Bloomberg reporting ATT is in talks to acquire Lumen’s fiber optic, LUMN down 10.5%, T is up
T making a wise acquisition? Hmmm. They are so used to just paying other companies billions to not merge with them.
B. Riley Financial, Inc. (NASDAQ: RILY), a diversified provider of financial services, announced today it has reached an agreement to reduce its total outstanding debt by approximately $35 million through a private exchange with an institutional investor. ..
https://www.investing.com/news/company-news/b-riley-financial-cuts-debt-by-35-million-in-bond-exchange-93CH-3948969
LONDON, UK, March 26, 2025 /CNW/ – Atlas Corp. (“Atlas” or the “Company”) announced today that the Company’s Board of Directors has declared cash dividends on its preferred shares as follows…
https://ir.atlascorporation.com/2025-03-26-Atlas-Declares-Quarterly-Dividends-on-Preferred-Shares
Boy it’s a good thing themajor rating agencies don’t rate B. Riley….. I think RILY would hate to hear their interpretation of this debt reduction maneuver… They’re cutting $35 million by exchanging $123 million of senior debt for $88 million of junior debt and additional equity vehicles……
It’s fun to watch a flailing investment bank try to dig itself out of a hole, isn’t it?
Maybe someday they’ll even get current with their reporting obligations.
B. Riley continues to chip away at its debt…good news for investors in RILYK and to a lesser extent RILYG.
Sound Point Meridian Capital preferred Series B (SPMB?) incoming:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1930147/000182912625002029/soundpointmeridian_n2.htm
Ken,
It’ll be some other ticker. SPMB is the SPDR Portfolio Mortgage Backed Bond ETF.
I think it was more important to share this here where more people can see it instead of over on broker and brokerage page. I was fighting all day to place some orders on Fidelity. I decided to try something that had worked before.
Placing orders after closing hours seems that the orders go through with no problems.
Now since I posted this, I probably jinxed it. Good luck to all you game players out there.
MCSAP (soon to be STRF) trading on OTC this morning. People are catching on and it’s popped $3 now. Some brokers can’t trade it though however.
STRF offering had to be upsized by nearly 50% due to high demand. (I heard lt was buying a ton)
Priced @ $85. Will be interesting to see where this lands when it begins trading in the secondary markets. Yield going to be in the 11%-12% range.
“The company sold 8.5M shares of its 10% Series A Perpetual Strife Preferred Stock at price of $85 each, raising roughly $711.2M. Strategy initially had hoped to raise $500M.”
I have no horse in this race but what Saylor is doing strikes me as the Wall St version of shenanigans that was going on back in 2015. Crap coins, pump and dumps, etc.. Once again bitcoin is not doing anything worthwhile for anyone except getting people’s cash out of their pockets and it being transferred to someone else. My eyes glaze over now days with all of this related news and content from crypto land.
fc – I concur with you. All of those meme coins, alts, the whole DeFi platform, the levered layered staking etc. so many rug pulls and money into the abyss. Essentially most were all trying to copy cat and sell hope, since you missed out, this could/will be the next bitcoin etc.
Reality is, the entire now so-called universe of “crypto” as what it evolved into, all of it, should not be lumped in with bitcoin. Bitcoin is really a unique digital currency/placement holder, for me personally and of course a pure once in a lifetime tech play.
It has been a great way to protect against the unrelenting decline in USD buying power. Something you can swap into, no different than when I rode the EUR/USD pair for nearly a year or went short the YEN/USD etc.
The now near 16 year performance track record of bitcoin is both impressive and undeniable. Only 3 negative return years. 2010 isn’t populated because it would be 10,000%+
2011: 1,473%
2012: 186%
2013: 5,507%
2014: -58%
2015: 35%
2016: 125%
2017: 1,331%
2018: -73%
2019: 95%
2020: 301%
2021: 66%
2022: -65%
2023: 156%
2024: 121%
That was my whole point Theta. You do not do anything with Bitcoin except pray someone else will pay more. It has no real life use case for normal people. It is just a hot potato being tossed around by Wall St now days instead of nerds in their mom’s basement.
I have read replies like yours going back a long time and they always say the same thing. unique, once in a life time, etc… and several years back the early promoters were right. Just get this in the hands of Wall St and watch it go up because they have the money to spike it. I freely admit it has gone up in price. We would not be here discussing this if it had not. Nobody would care about it “unless” it went up in price.
But just like blockchain.. it is surprisingly useless in the real world and energy intensive. With all of that said I do hope you make money on it. I wish you well.
fc – You have some good points there. On the tech specific actual applications side, I just think we are still early in the evolution. But having said that, if in the next decade we aren’t seeing this blockchain integration say in a sector of finance or even healthcare to secure and reliably manage data, than your hot potato theory will be proven accurate.
And to your point in terms of the energy requirements, we are now seeing this landscape dramatically change as it is quite intensive and wasteful from a carbon footprint perspective.
Off-hand I want to say world-wide, mining is now 50% sourced from renewable energy whether it’s hydro, solar, or wind. There has been a massive uptick in mining operations moving to Iceland and Quebec due to this phenom.
Time will tell! In the interim, I’m just looking to get some double digit yield here off the perpetuals.
Theta:
“The now near 16 year performance track record of bitcoin is both impressive and undeniable. Only 3 negative return years.”
You are boasting about the performance track record of Bitcoin when the drawdown years are -58%, -73%, and -65%?
I will stick to Gold for my store of value investment allocation.
Best of luck on this MSTR/STRK Bitcoin yield security.
And don’t forget the tried and true investing adage all income investors must remember:
“More people have been killed reaching for yield than they have from the barrel of a gun.”
Papa Doc – I hear you on the performance, at face value the -65% and -73% years in particular are pretty ridiculous but it’s relative when you factor in 4 four digit and 5 three digit % return years.
I would say though on the -58% year, that’s pretty close to where we saw equities and allot of individual fixed income fall in 2008/2009, especially lower quality preferreds that hit single digits from previous near par levels.
I appreciate your comment because I really never prefaced this by saying, this holding is going in my junk box allocation. In general and especially this point in the interest rate/economic cycle, I am very reluctant to add low credit quality/levered to the moon type entities be it mREITs or some other form of physical corp/retail REIT with occupancies plunging and other macro concerns etc.
If you have something in this 9-11% yield range you happen to like, feel free to share as I have a very open mind when it comes to holdings in my proverbial junk box portfolio.
I agree with Theta that there is substantial risk and it is basically a bet on further Bitcoin Adoption as a store of value, but the yield is high enough to justify a small speculative position imo. Gold is up 10x over the last 25 years and will probably do another 10x over the next 25 relative to the USD. I can envision BTC doing 10x or more also. STRF could do 16x over the next 25 if dividends are reinvested and untaxed at the 11.75% yield at IPO.
Theta –
“If you have something in this 9-11% yield range you happen to like, feel free to share as I have a very open mind when it comes to holdings in my proverbial junk box portfolio.”
Check out IIPR-A and its 9% yield. But please DYODD as the cannabis industry is undergoing many changes with major risks.
REIT preferred paying g up to 11% nd their term issues 9-10%. They’ve had a low default rate so far but still some risk in a meltdown. MFAN MFAO CIMN CIMO MITN MITP NYMTG NYMTI for term issues, RITM-D CIM-B for floaters a little below par.
Step down to 8% if you don’t want REITs with SB-C SB-D EICC.
Unlisted LTSAP at 10-13% if your broker allows it, you need to enter limit riders blind.
First let me say I am a large holder of Bitcoin, continue to buy more every month and have no intent on selling. I started buying when Bitcoin was $3500/$4500 as a former COO/CFO of a Fortune 250 company that were clients of mine asked me about Bitcoin and though I’d heard of it, I’d had never done the research or known anyone that owned any. I hold the vast majority of my coins in a cold wallet with a 14 word password and Bitcoin trades 24/7/365 not when the markets decide they are going to open. I spent 24+ years on Wall Street after law school in Michigan managing and doing daily risk profiles of billions of institutional assets, doing hundreds of presentations, had a national investment call in radio show every Sunday night for many years and I will always say I DO MY DEEP RESEARCH before I recommend or even talk about a security or asset. I have NEVER had any investment perform as well as my Bitcoin. Let that sink in for a moment. Bitcoin is decentralized and has no counter-party risk. World governments might be able to print unlimited fiat currency, but Bitcoin is a finite asset. The total number of bitcoins issued to date is approximately 19 million.
just spoke at a large Bitcoin conference in Miami (I was there) and the largest and most dynamic economic superpower 
has plans to add Bitcoin to their strategic reserves (if they already haven’t). My belief is that the US should just really buy Microstrategy/Strategy and give Michael Saylor a Cabinet position for many reasons. Do you really want future generation of yours to ask you why you or wonder why you didn’t buy Bitcoin when it will be $1MM+ (just my opinion). Lastly, as I tell my institution clients that pay me a small fortune to advise them, “ you and your Board of Directors” should own Bitcoin as an asset of the company as EVERYONE should own some Bitcoin. Each individual should do their own deep due diligence and keep an open mind before you begin your journey. A mind is like a parachute, it only works when it’s open. Finally, only MORONS advise people to do things that they know nothing about, many that talk about Bitcoin should look in the mirror.
The maximum supply of bitcoins is capped at 21 million.
New bitcoins are created through a process called mining.
The mining reward halves approximately every four years, reducing the rate of new bitcoin issuance.
It is estimated that the last bitcoin will be mined around the year 2140.
After reaching the 21 million limit, no new bitcoins will be created.
Bitcoin’s scarcity is a key factor in its value proposition. Bitcoin has been and will continue to be a great store of value and has increased utility each and every day. We have come along way from the Silk Road; the most powerful man on the planet
Wishing you profitable investing, Azure
Azure well put. What changed my mind about bitcoin. Is when the bitcoin foundation wanted to alter and carry out software changes. The miners (people) voted no.
This one event told me the miners (people) where in control.
Azure Blue,
you say “First let me say I am a large holder of Bitcoin”
Does this mean you are overweight, or you own a lot of Bitcoin?
Please clarify.
Just kidding….
I do respect your opinion, but I’ll always disagree on Bitcoin. If it takes over the financial system, and the dollar becomes worthless, I will still own a home I can sell and 4 cloned dogs (the 4th is being manufactured by Viagen as I type)
I know this is a dumb question but Azure how does one actually buy it?
Franklin, I had the same thought. I googled it. We have one of those Coin machines in Safeway and I figured anything that somebody was trying to sell with a vending machine would be questionable on cost and when I saw there was a combined 14% to 16% commission I figured I would stick to gold or silver which has a commission both buying and selling so it wouldn’t surprise me that it is the same with that machine.
There are many ways to buy (and sell) Bitcoin. Some of the more user friendly sites: Coinbase, Fidelity and an ETF (IBIT), but these are just a few and there are so many others.
Coinbase https://www.coinbase.com/
Fidelity https://www.fidelity.com/crypto/trading?imm_pid=58700008059199145&immid=100927_SEA&imm_eid=ep73306203346&utm_source=MICROSOFT&utm_medium=paid_search&utm_account_id=700000002659201&utm_campaign=CRY&utm_content=58700008059199145&utm_term=buy+bitcoin&utm_campaign_id=100927&utm_id=71700000100495520&gclid=747bd02c243a102ef51cb7ce881b1cbf&gclsrc=3p.ds
iShares Bitcoin Trust ETF (IBIT)
Total Assets $52.6 billion
Expense ratio 0.12%
Inception Date January 5, 2024
I hope that helps and I thank you for your question, A
Franklin – I’ll just add that if you currently have a Robinhood account, you can buy spot bitcoin on there as well. Of the ETFs, I do like IBIT. It has the best liquidity and also trades in the 24 hour market.
I have a specific IBIT allocation that I write weekly calls against which effectively turns it into a bond hybrid income generating position. The yield on an annualized basis is nearly 50%.
Thanks Ab ,
I didn’t know that Fidelity was doing it.
Charles M – Just so you know, you have to open a Fidelity Crypto account. You won’t be able to buy spot BTC through your current Fidelity brokerage.
ETFs? Fido has FBTC – it matches the price of BTC on a chart- they both vary, you just don’t need to spend $88000, just ~ $77 now- so buy 1000+ shares if you want to go big. They have Ethereum for sale too.
my comment is for Franklin- up above- how to buy
Gary – You can purchase spot BTC at any incremental mount of dollars you want; you could buy a $1.
Azure –
“My belief is that the US should just really buy Microstrategy/Strategy and give Michael Saylor a Cabinet position for many reasons. ”
You have posted many great comments over the years, but that one is by far the most ridiculous – for many reasons, including how far of a premium MSTR trades over the Bitcoin it actually holds.
And how about this one from you:
“Bitcoin has been and will continue to be a great store of value and has increased utility each and every day”
Yes – especially more utility from hackers, thieves, and bandits. They truly worship Bitcoin and thank the investing Gods everyday for its creation.
I have lots of friends that own Bitcoin and they almost always say the same thing when I ask them why they own it…..”Because it keeps going up”.
Full disclosure – I own (and often trade) a tiny amount of FBTC in my IRA. But to me it is the ultimate “greater fool theory” position. That is what makes a market. So far, I have never lost money on any Bitcoin trade.
Having gone through multiple crypto winters, I would say the extreme volatility is not for everyone. When Bitcoin block rewards do diminish, mining will become less and less profitable and transaction fees probably have to rise. Azureblue- how do you see mining playing out as we near 2040?
On Ethereum network before they upgraded to a proof of stake model instead of mining, the transaction “gas” fee was extortionately high. Coinbase gives out free crypto for learning about different platforms and they gave me the gas fee at the time, a whopping $10 of ETH to move 3 dollars worth some shXXcoin for the tutorial exercise. I obviously kept the ETH.
I think establishing crypto on-ramp and putting fun money/pocket change into crypto can be a useful exercise. But be fully prepared to lose money.
Even if crypto is my all time best performing asset, I’ve been moving more towards gold as an asset for store of value.
Scorpio Tankers (NYSE:STNG) is offering common shares, preferred shares, debt securities, warrants, purchase contracts, rights, and units, with potential convertible or exchangeable securities.
https://seekingalpha.com/filing/9707268#hasComeFromMpArticle=false
Fab – as the headline reads, what Scorpio has done is to file an SOP “automatic shelf registration.” Many companies do this… They are not offering any common or preferred shares, debt securities warrants, purchase contracts, rights, units with potential convertible or exchangeable securities at all under or because of this filing….. It’s just giving them the ability to issue any of the above in the future under separate filings that will happen when/if they ever wish to come with a new issue..
Theta,
This could be like the Fnma 9% preferred that was issued less than 3 months before the government placed it into conservatorship.
Theta,
LT always buys his crypto from Coinstar machines at Kroger.
All my spare change has been converted to crypto!
This actually isn’t a bad idea given I wasn’t using the change.
Coinstar, oh Coinstar, thank you for helping me clean up my desk!
So, you see , BTC DOES have a use case!
That’s a hefty commission Lt 16 to 17% buying from that machine.
lt – I missed that FNMA preferred issue. Interesting analogy. Your coinstar maneuver there is epic. You made me think of something really awesome that happened in the early days of BTC with a vending machine. I’ll have to dig up the link and post it over in the sandbox. Cheers.
Theta,
I owned that FNMA prfd,=; I think FNA was the symbol but don’t quote me.
The Board had declared the quarterly dividend before the takeover, making the $1.125 dividend payment on a $50 par pari-passu with the other unsecured debt of FNMA.
I was able to buy a bunch at .20 before the market was certain they’d be obligated to pay the 1 dividend if they were going to keep paying on their unsecured debt.
That knowledge was courtesy of paying attention in business law class in college. Still, not even securities lawyers were certain what the conservatorship meant.
I find STRK to be the series A – trading since 1/31 It is 8% – is on QOnline.
Stockhouse.com has this confused bit:
” Strategy™ (Nasdaq: MSTR/STRK) (the “Company”) today announced the pricing of its offering on March 20, 2025 of 8,500,000 shares of 10.00% Series A Perpetual Strife Preferred Stock (the “perpetual strife preferred stock”), at a public offering price of $85.00 per share. The issuance and sale of the perpetual strife preferred stock are scheduled to settle on March 25, 2025, subject to customary closing conditions.”
I think they confused K with F. With name changes, and multiple issues, this thing is confusing.
Not sure if this stuff is any better than the common- except it’s cheaper.
I own none of any.
theta-
I find STRK to be the series A – trading since 1/31 It is 8% – is on QOnline.
Stockhouse.com has this confused bit:
” Strategy™ (Nasdaq: MSTR/STRK) (the “Company”) today announced the pricing of its offering on March 20, 2025 of 8,500,000 shares of 10.00% Series A Perpetual Strife Preferred Stock (the “perpetual strife preferred stock”), at a public offering price of $85.00 per share. The issuance and sale of the perpetual strife preferred stock are scheduled to settle on March 25, 2025, subject to customary closing conditions.”
I think they confused K with F. With name changes, and multiple issues, this thing is confusing.
Not sure if this stuff is any better than the common- except it’s cheaper.
I own none of any.
Gary – Probably just easier to refer to the two floats as either the 8%er or 10%er. Hoping the 10%er closes and is available tomorrow morning on NasdaqGM. It already went up $5 today now closing over $90 handle on the OTC.
Brings back some good memories of buying new preferred issues on OTC below par and then when they’d open up on the regular secondary exchange, they’d shoot up to $26 in no-time.
Theta,
Wasn’t there a problem with BTC software code in 2010 that permitted someone to create billions of BTC and it then had to be forked?
lt – Yes this happened only I believe 6 months after the launch. There was a bug that basically allowed summing up of all the overflow. It was caught pretty quickly by developers and Satoshi himself completed an update; a soft fork was implemented in order to time machine bitcoin back to right before the incident happened, as if it never did by restoring it to the earlier state where all blocks were valid.
I’ve been waiting for “RPTP,” the Ritm Property Trust 9.875% FtF cum perp preferred, to start trading. Now I see the symbol is RPT-C and it’s trading history on TradingView and QOL started on Feb 27 and on Schwab on Mar 12.
Got is at $24.76 soon after it opened at Schwab. I know I was also looking for a different ticker but they decided to change it at the last minute apparently. Sit back and enjoy the really good yield until 5/2030 or later as they have no maturity date !
Supplement dated 3/10
https://www.sec.gov/Archives/edgar/data/1614806/000110465925022178/tm258631d1_424b5.htm
MicroStrategy — now operating under the name “Strategy” (Nasdaq: MSTR/STRK) — has priced a new preferred stock offering that will raise $711.2 million, with most of the proceeds headed straight into Bitcoin.
The company announced the pricing of its 10.00% Series A Perpetual Strife Preferred Stock on March 21, with 8.5 million shares offered at $85 each. The offering is scheduled to close on March 25, subject to standard conditions.
According to Strategy, “the net proceeds to it from the offering will be approximately $711.2 million,” after fees. The firm said it plans to use the cash “for general corporate purposes, including the acquisition of bitcoin and for working capital.”
The preferred shares come with a 10% annual dividend, paid in cash every quarter. If Strategy misses a dividend payment, it will owe extra “compounded dividends” that increase by 1% every quarter until they’re paid — up to a maximum of 18% per year.
The company added that it can redeem all of the preferred stock if less than 25% of the original amount remains outstanding or if certain tax events occur. If a “fundamental change” happens — such as a change of control — holders have the right to demand a repurchase…
https://www.thestreet.com/crypto/markets/strategy-raises-711-million-to-buy-more-bitcoin-through-preferred-stock-offering
the new STRF perpetual pref priced at $85, which is a ~11.75% yield at the offering price (10% on $100 par). Price talk had been between $75-85 on where to price it, so the yield is higher than that 10% headline number.
Jack be nimble, Jack be quick…this will be fun to watch.
Hey buddy, I will give you a bunch of magic beans for your cow and sell you back the milk for $5.00 a gallon.
I bet xerty, ChrisW, and Charles M are 1st day buyers!
Sorry I missed Fabrib’s post gents and posted mine. Fabrib’s is populating under R2S’s thread from yesterday, so I didn’t see it yet. Cheers.
Theta,
I missed the train on MSN, FB, AMZN, AMD, Yahoo, or got on at the wrong station then got off. I guess I will wave as you speed on by.
lol @ Charles M – At this point in the near two decade price cycle, with new money, I’m just playing BTC via my fixed income bias inclinations hence why the new convertible debt ETF and these preferred perpetuals are such an interest.
The low hanging fruit opportunity is long gone. As you alluded to it’s no different than say even missing out on Apple before the iPhone came out but all of sudden now two decades later, getting super excited and going all-in on Apple @ a $3.2T+ cap. I’ll pass on that one as well.
Theta, I’m clueless when it comes to new tech. I got in on the FB IPO and bailed around 27.00 as a matter of fact I don’t use it. Not because I don’t think it’s great, but because it’s obvious that bad actors collect information and use it to scam people. I have seen tech evolve like machines that can print metal parts, or new battery tech that seems like a new company comes along with a better idea than the last one. Problem is I never made any money buying and holding stock of these companies. A lot I think comes down to your experience with your job and training in different fields of technology to recognize an opportunity.
the day before the first ex-div date should be very interesting.
Actually, at $85 it ylds 9.41%
And- Fabrib- it began trading 1/31, where did the closing of 3/25 come from?
Actually, at $85 it ylds 9.41% It pays $8 on $100 par, 8% but is discounted.
And- Fabrib- it began trading 1/31, where did the closing of 3/25 come from?
Gary – Not sure if you saw my above post but there are now two different preferred issues from MSTR. The previous STRK 8% which you outlined 1/31 and now a 10%, STRF, which hasn’t landed yet and is trading on the OTC as of yesterday.
Many retailers are unable to buy it on the OTC. STRF is currently trading under MCSAP and opened yesterday @ $85. It hit $93 today.
F&G Annuities, FG down 15% today…anyone have news? FGSN, FGN holding.
https://www.sec.gov/Archives/edgar/data/1934850/000162828025013869/fg424b5preliminaryprospect.htm
Took a starter in Affiliated Managers MGR-B @ 18.19 for a CY of 6.54% rated BBB-. I looked at the MGR-E issue but couldn’t understand why that one, which yields about .25% more is trading just over par. So for 25 basis points I’ll take the upside to 25 if rates drop at some point over the next 35 years lol.
Good comment.. MGRB/VCLT pair has gone from 2 sigma rich in october to near 1.5 sigma sigma cheap now (3 yr horizon).. i t was near 3 sigma cheap in december 2023 ..
Really have to tip-toe into these given the downward trajectory. Might dip toe around 7%. MGRD is $2 less, has lowest coupon, – call in ’26, mat in ’61, now 6.51% and at $15 = 7% yld
Dan- typo ? it’s MGRB not MGR-B that would likely be a preferred
Gary, you are correct. Ticker is MGRB.
MGR 22.14 YIELDS 6.6% call it I dare ya.
Both under 7%, why bother when there are so many over 8% /innovativeincomeinvestor.com/new-preferred-stock-and-baby-bonds-since-12-2020/
Well what the heck, why settle for even 8% when you can get 9% or 9 7/8%, etc. They’re all interchangeable anyway, right?
Microchip Technology Series A Mandatory Convertible Preferred Stock MCHPP incoming
https://www.sec.gov/Archives/edgar/data/827054/000119312525057892/d903706d424b5.htm
Moody’s periodic review of WRB:
https://www.moodys.com/research/null-Moodys-Ratings-announces-completion-of-a-periodic-review-of-ratings-Announcement-of-Periodic-Review–PR_1000011025
The Baa1 senior unsecured debt rating of W. R. Berkley Corporation (NYSE: WRB) and the A1 insurance financial strength (IFS) ratings of W. R. Berkley’s principal property and casualty insurance subsidiaries reflect the company’s strong franchise within the commercial and specialty insurance segment with a diverse array of small- to medium-sized risks, a disciplined approach to underwriting, the company’s track record of strong, stable profitability coupled with low catastrophe risk and good risk-adjusted capitalization. Partially offsetting these strengths are the company’s exposure to long-tail casualty businesses, which have greater reserve and pricing risk. The company also maintains somewhat high operating leverage, which Moody’s views as tempering the group’s strong operational profile.
Why are they doing so poorly? A couple at 6.3+% at 10- almost 20% discount,
and past call. Low coupon must be a factor. Not a good place to put cash as a MMKt sub.
I bought a miniscule position in speculative biotech IBRX at 3.20 when it was discussed recently. Now 2.76. Since then, the appetite for such stocks may have fallen due to changes in national policy.
The chart suggests a possible return to area of the Oct low. Price has been dropping since the Feb 19 high. With very little to lose, I’m holding.
Rocks I added
I don’t think I’ve ever seen a higher short %. Will be fun to watch.
IBRX Short Float 68.63%
furcal – Where are you getting that data from? You probably meant to denote a “mm” instead of a % sign. I almost fell out of my chair.
I’m showing insider ownership is 63% with only 10% institutional. The # of shares borrowed is just under 61mm but the float is gigantic; that SI represents 7% of the total outstanding shares or 19% of the float. Total outstanding shares is 868mm vs. float of 205mm.
Either way, I’ll take a look as I’m always up for some degeneracy.
theta-the info was from finviz- I didn’t look further, so thanks for the clarification.
Haha, I have a borrow agreement with my Schwab account. I’ll have to check what they are paying me to borrow my shares.
I think the doctor owns like 80% of the outstanding shares so that leaves the crumbs for the rest of the investors to fight over and like Theta mentioned, institutions own 10% or half of the leftovers. So it’s probably easy to manipulate the price.
But the traders don’t control the news and what they are doing.
Charles M – Brilliant idea. Ping this when you find out what they are paying.
MGRE trading just under par right now.
(Affiliated Managers 6.75% 03/30/2064)
*Company has been publicly traded for nearly 3 decades with a $5B cap.
*25% net profit margin on $2B+ annual revenues.
*Operating cash flow just under $1B
Theta—thanks. I have been considering this one. It’s super safe, but its long-dated maturity makes it susceptible to share price movement.
Tim – 100%. As you obviously know there is always that trade off between credit quality vs. time vs. yield. If I can only pick two of those attributes, I always go with credit quality and yield.
This holding is for my “annuity” bucket and it’s something I buy consistently (depending on price) on at least a monthly basis. It held up quite well during the panic fixed income hysteria last fall and when we had that more recent dump post election it broke $24 just for a brief moment.
MGRE has a 42 cents ex-div on March 28.
MGR is past call and about 11% below par- good to 2059 too. Prob won’t call, but nice if they did. current yld 6.61%
good comment.. mgre/vclt pair trading near fair value (3yr horizon).. was near 3 sigma cheap in September