Redeploying a Little Cash

As we have written about we personally held bunches of Arbor Realty 7.375% baby bonds (ABRN) which were redeemed in total last Friday.  The shares redeemed at $25 plus about 37 cents of accrued interest.

We also held 400 shares of them in the Medium Duration Portfolio.

Lacking better ideas we purchased an additional 200 shares of the Southerly Hotels 7.25% baby bonds (NASDAQ:SOHOK) which have a maturity date in 2021.  They also have a early call date starting in a year–thus we hope they are not early redeemed (although they would be redeemed at 101% plus accrued interest).  The shares went ex-dividend today.




This leaves the portfolio at 85% invested which is just fine at this moment. We await a bargain somewhere with the last 15%.

13 thoughts on “Redeploying a Little Cash”

  1. Are you saying you bought them today and missed the divvy or was this a purchase made last week, if you don’t mind divulging?

    1. Hi George–I bought today AFTER the ex date so no divy–but the pricing was right as it should head back to 26 shortly.

      I bought them personally as well.

  2. Hi Tim, I picked up some of those today also. I was hesitant as they trade around 60 cents over par and with such a short time to first call. When you factor in the 1% premium if called as early as next year, they do look a little more appealing. I’ve got additional funds to deploy and a lot in my watch list but just can’t bring myself to deploy the funds. ECCX is one I’m watching and it’s trading below par but has a 10 year to maturity date. What’s your opinion on that issue ?

    1. The ECCX issue is one I am staying away from for now–the 6.6875% is pretty marginal (In my opinion) for being 10 years out on the maturity.

    1. Hi Richard G—if you hold your curser over the rating a little pop up thingy says “for safety of dividend). I will be getting this clarified as the website progresses.

  3. I can’t see anything about a “III” rating. What are you referring to?
    Jeff

  4. I’m sure there are other people at FBI/DOJ/NYPD/SDNY involved in this scandal with pertinent information and missing pieces to this puzzle who are frustrated with the cover up. I’d encourage them to get in contact with CTH directly and pass along whatever they know.

  5. Somebody bought a huge lot of these late yesterday, over 22K. Shot the price up by 15cents now…

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