Sandbox Page

I will be adding a new link titled “Sandbox” in the right hand menu.

That link will get you to this page.

I had originally set up the “Reader Initiated Alert” page for ‘alerts’. I was thinking this, for instance, might be when a preferred stock is undergoing a temporary selloff and someone wants to let the population know about it quickly. Of course we all (including me) use the ‘alert’ page for general messaging.

I am requesting that we start using the Sandbox page for all general talk, and try to preserve the ‘alerts’ page for ‘alerts’.

I have had a screen up on one of my monitors all week where I see all comments – no matter where they are posted–it is a great page and I wish everyone had a page like that–believe me we all benefit from all the knowledge being shared. I don’t want to stifle any of the exchange of knowledge, but hope to get things a bit better organized by adding the Sandbox page.

1,578 thoughts on “Sandbox Page”

  1. I had those as well and sold earlier this year. I just did a calc and please know that since it is selling at a premium, so (obviously) the return is less than the yield. I assumed buying today at 27.06 and holding until it’s called. You get a return of about 7%. That’s not bad, but if you can get it lower you can really juice your return.

    1. eoz – If you’re talking about WCC-A, a conventional bond yield calculator would give you a yield to a call on 6/22/2025 of 7.30% if purchased today at 27.06 taking into account a couple of days of accrued. Just being able to lower the purchase price by 13¢ would jump your yield to 7.50%

  2. Was notified by Fidelity GNT-A being called 10/26/22, but cannot find any info beyond theirs.

    1. Not true… I checked with Gabelli… They were aware that Fidelity has erroneously put out a call notice…. It was done in error… no call happening

  3. If anyone has any other “EP-C” type securities that kind of go under the radar because they are not baby bonds but not a perpetual preferred stock either in reality due to unique circumstances or even are just obscure such as SPLP-A but have a definitive redemption date, please share here. Thanks!

    1. If you’re not looking for issues trading at a discount only how about WCC-A? It’s a 10.625% coupon that was issued in conjunction with WCC’s huge acquisition of Anixter. It was not originally priced by market forces but by formula off of the price of notes issued at the time of the merger… Not only is it 10.625%, it will reset (annually I think) at 5 yr USTreas + 10.325 if it makes it passed 6/22/25 which of course it will not. WCC’s been killing it as a company since this merger and I think they’ve reduced debt by over $1 bil more than they projected since the June 2020 merger based on original assumptions.. Moody’s has taken note and upgraded the notes a/o Sept 16 to Ba2. I did not check S&P or Fitch. The preferreds are not rated but by implication would be one or 2 grades below that so no less than B1. Last trade was 26.91 which would be 7.65% YTW to the 6/22/25 call… for the record, I think current yield is 9.87%. Not bad for a 2 1/2 year “maturity.” Cumulative and qualified to boot.

      1. I have had these since they came out. I keep them to remind myself that I once made the right decision… long ago… before all of this downturn started.

        The hard thing now is watching prices go down, even when you know you will be OK a few years down the road if you hold fast.

    2. theta, Use Tim’s list right here. Use drop down in banner up top, Master List and just peruse the Maturity Date column, good to use in conjunction with QO to dig into details.
      PS: I bot some Ep-C here too, now will sell off the sliver of KMI common as needed. Move UP in tranche and income coverage!

  4. I am seeing some decent bond rates from Canadian banks on the Schwab platform. Not yet high enough to buy, but getting close. Last ones I saw were around 4.5%. My question is, will buying one of these put me in income tax hell even though it is within a traditional IRA ? I have researched it a bit and it seems there is some sort of agreement on taxation, but I have heard some people say it is not worth trouble for the little extra interest. Will this require Schwab or myself to file an extra tax form ?

  5. Will UMH call UMH-D in January 2023? UMH did mention wanting to call all preferred shares earlier in the year and did raise capital via an Israeli bond issuance But with their recent purchase of the South Carolina Community, I am thinking they may have repurposed the funds from the bonds for this purchase.

    from their Q4 results announcement earlier in the year:
    “Subsequent to year end, we sold $102.7 million of 4.72% unsecured bonds in Israel. This capital, as well as capital raised through our ATM and other sources, will be used to redeem our $247 million 6.75% Series C preferred stock in July of 2022. In January of 2023, we can redeem our $215 million 6.375% Series D preferred stock. These transactions will drive incremental FFO growth. We are well positioned to execute on both of these redemptions.”

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