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.
The “Like” Button – has anybody else noticed that when pressing the “Like” button recently that your “Like” vote isn’t sticking?
Wednesday A.M. …… Yes, I Liked YOUR msg….. it seemed to hold for 10mins or so ….. then gone.
What’s happening with the debt ceiling? As I’ve pieced it together, I think this is right.
The debt ceiling was reinstated at the beginning of the year. Then Republicans offered a budget which raise the ceiling by $4T. That budget was abandoned in favor of a Continuing Resolution that extended the terms of the ongoing budget without raising the ceiling, leaving it at $36T.
This article from Monday has the latest estimate of the X (default) date (between July and October).
https://www.politico.com/live-updates/2025/03/24/congress/debt-limit-x-date-july-october-congress-00244345
Treasury is using “extraordinary measures” to extend its ability to borrow. When that’s exhausted and no new debt can be issued, Treasury can spend from the TGA, its bank account at the Fed, until it’s used up.
Extraordinary measures explained.
https://bipartisanpolicy.org/report/extraordinary-measures-simplified-explainer/
I’m not expecting any action by Congress until April tax collections are counted.
rocks debt limit
Like almost everything else these days, I no longer assign any credibility that such a limit will have economic consequences.
IMHO
Congress will do whatever the Administration wants.
Westie-
In the case of the debt ceiling, I think the question is when and will there be serious horse trading.
Rocks,
I have been seeing some really weird ideas for “fixing” the debt ceiling floating around – everything from revaluing the gold in Fort Knox to issuing special assets to some things I didn’t quite grasp (translated from English, to Chinese, then back to English).
Don’t know how “real” any of that is. I am hearing them from some of our research partners in Asia who have people monitoring all kinds of media (incl. some crazy stuff).
Private, I ran across this today.
https://www.msn.com/en-us/money/markets/here-s-the-real-reason-trump-wants-to-create-economic-chaos-and-why-investors-should-be-more-afraid/ar-AA1BIun3?ocid=hpmsn&cvid=b6ac47109a7b4f2da8be2ef6635b3d4f&ei=131
Unfortunately like a game of chess I think there are too many moving parts interacting with each other to predict the outcome. In the thought outlined in that article, what happens to the value of the housing market? Devaluing the dollar does that mean it’s going to take more dollars to buy the same house? that would push inflation up. Or lets say the market collapses and the value of real estate falls so it takes less dollars to buy?
On the other hand, what happens to jobs and wages? If inflation goes up people will demand higher wages to be able to buy things which will add to the inflation. Then again we sink into a deep recession or even a depression jobs will be lost and businesses will offer less wages because there will be a surplus of workers to pick and choose from and they can dictate what they want to pay. Who can say what will happen.
If so, would buying international stocks be a play for when the $ weakens?
Mr. Green, Yes and No. Hard to say. So far EU stocks have been doing good. So has AU I believe.
Lot of economies are joined at the hip with the US. Last 60 years the US caught a cold and so did our trading partners, usually worse.
Things have changed. We didn’t join the Indo Asian trade agreement. I’m not sure if we have broken parts of the North American trade agreement or just threatened to. When people get ill and recover they tend to avoid or protect themselves from what made them ill.
Depends on your beliefs. If you are confident (or arrogant) that you can live with an isolationist policy or that others will deal with you under their terms then that vision could be a true one. Think North Korea.
On the other hand if you are deemed untrustworthy or don’t follow
The Golden Rule, as found in the Bible, is summarized in Matthew 7:12: “So in everything, do to others what you would have them do to you,” emphasizing treating others as you wish to be treated.
So Mr. Green, never in my life have I really had an interest in investing outside the US as much as I have now.
My concern is the treaties we have that allow recovery of foreign taxes could change. On this site Tim used to maintain a list of preferred Canadian stocks.
I think people who live North of the 49th parallel have to be tough to live in that environment.
I would not invest a single dollar in Europe right now for the very reason you mention… they have been violating the golden rule for a long, long time and it is coming home to roost.
The EU seems to have a death wish as their policies only make sense when looked at through that lens.
Why aren’t massive budget cuts containing the budget? An obvious question nobody is asking.
Recently this was some discussion on Land O’ Lakes preferred/bonds. Would someone be so kind to direct me to that discussion?
Thank you!
@Shareholder287:
https://innovativeincomeinvestor.com/bond-discussion/comment-page-10/#comment-150685
_____
Google search syntax:
“land o’ lakes” site:innovativeincomeinvestor.com
Land o lakes will provide financials if you email them w proof of ownership.
Thank you ESW3 and Maine!
I see their bond cusip avail on IB is 20 points wide and is 144a..
Use one of your Caymans Is entities.
if you can’t find humor in everything, even dark humor , what point is there in life.?
SPNT-B and Moody’s Has anyone ever questioned Moody’s why they apparently do not rate this preferred? They do rate SiriusPoint’s senior unsecured at Baa2 and they even provide an insurance financial strength (IFS) ratings rating for SiriusPoint of A3, but no rating for the preferred…. That seems unusual IMHO as when they rate senior unsecured, they usually rate the other cogs in the corporate structure as well, don’t they? I see no way to email the analyst and have not called to ask.
Does the company (SPNT) have to pay to have the security rated?
Yes but usually the payment covers the entire corporate stack of issuance
I think issuers pay for a rating on each issuance, not a blanket payment for the entire stack. There are a number of examples where bonds are rated by agencies but not the preferrreds.
2wr, I saw that too, when I read their recent report on SPNT. At the bottom of any(?) webpage on their site, is a “Send Feedback” link. I sent them this message. We’ll see if I get a reply:
Feedback
Ratings action on SiriusPoint, Ltd. preferred stock
Brief Summary / Title *
Moody’s rates SiriusPoint, Ltd.’s IFS (A3) and senior unsecured (Baa2), but I was wondering why there is no rating of the SiriusPoint Ltd 8% Resettable Fixed Rate Preference Shares, Series B
Ticker Symbol: SPNT-B CUSIP: G8192H155 Exchange: NYSE
Interesting article on Yahoo about the metal nickel used a lot in the production of batteries. Seems with new technology batteries don’t need it as much so it’s at a 3 year low. Chinese investors and the Indonesian government had teamed up to increase production and with other suppliers like Australia it’s flooded the market for this metal. Now they are thinking of shutting down the smelter and cutting back on mining to try to get the price back up.
As with anything to do with commodities it’s supply and demand affecting the price
Charles-
Lithium stocks have also suffered due to changes in tech and anticipated demand.
TLT was rejected on March 4 at the leveled-out 200-day moving average. Now, it’s just above the rising 50 dma. Will the 50 be tested and will it hold?
last reminder: Mountain America CU (open to anyone by joining an association) is offering an 18 month certificate at a 4.89 dividend rate, 5% APY
They also offer a growth CD of 18 months at the same rate which is just an add-on certificate…you can thrown in up to 100k at any time in the next 18 mos.
This is a HUGE CU . 1 mill+ members. I opened both in person yesterday, but you can do it online
ends 4/30
I bought ET in a taxable account because others here have said their K-1 is no big deal, but I seem to have box 13K with $5 of excess business interest expense which requires filing form 8990 not supported by TurboTax. Any advice for this problem?
Irish…. I also own ET in a taxable account and have been using turbo tax for the last three years of owning ET stock. I received the same message this morning working on my taxes – however turbo tax message said I “MAY” need to file form 8990. Looking at my prior years ET K1 forms – 2023 did not have this excess business interest expense however 2022’s ET K1 form did. I did not file anything outside of what turbo tax submitted in 2022. I cannot remember if I received the same warning in regards to may needing to file a form 8990 in 2022 or not. Sorry not much help here.
So did TurboTax let you efile with that k1 box filled in? Thanks!
Yes – turbo tax let me efile with that amount in the box.
$5 ?
Think the IRS will pursue $5?
Westie, I don’t know how bad it really is with the IRS and SSA. The news likes to jazz up and do sensational reports to get eyeballs. But articles saying people showing up for work and having to use folding tables, bring their own toilet paper, office supplies are not available. Parking for 300 people is causing some to pay for long term parking and leave home hours early to try to get a parking space. Phones are not getting answered and people on hold over 2 hours. Employee morale is low. I got my ET paperwork in the mail. Do I think they will come after me for 5.00 ?
Unless DOGE comes up with magic new software I think the answer is NO
One option is delete the $5 manually and e-file. The $5 appears to be a capped deduction with a carry over of excess. Deductions reduce income. Deleting it increases income. As I understand it, taxpayers are not obligated to take deductions, only to report income. After you clean it up, you can run a TT file review before trying an e-file.
A longer and more nuanced answer is below. Which is – the $5 is likely within allowed limits anyway. I note a difference between your TT and Brett’s – Bretts TT notice says it MAY require an 8990 filing, You are saying a filing IS required. Time to do your homework.
Here are form 8990 and its instructions. You might want to look at the IRS Q&A, particularly Q #1 explaining the calculations for determining excess interest which is pegged to a 30% fraction of ATI. IMHO, large fractions of ATI’s tend to be numbers larger than 5.
Depending on your tax situation and the small $5 amount, it’s possible that 163j interest limits and excess carry over may not be material issues for you. Not a bad idea to run 8990 and take a look see.
8990 Form
https://www.irs.gov/pub/irs-pdf/f8990.pdf
Instructions for Form 8990
https://www.irs.gov/pub/irs-pdf/i8990.pdf
IRS Q&A
https://www.irs.gov/newsroom/basic-questions-and-answers-about-the-limitation-on-the-deduction-for-business-interest-expense
Your other options are filing a paper return, paying TT for tax advice and audit protection or hiring a CPA. Disclaimer: I don’t give tax advice. I avoid K-1’s for reasons like this. So proceed at your own risk. JMO and DYODD.
Brand new article on SA by N. Sismanis :
(Micro)Strategy’s STRF: The New 10% Yield Preferred Could Supercharge The BTC/Share Accretion Journey
Discusses STRF & K
Down on the farm, one bushel of wheat looks pretty much like every other bushel of wheat.
I found a list of preferred stock ETF recommendations made in June 2023. I did a 1-year look back to see how the ETFs performed over the last year. (This is an unfair comparison but 1 year is my usual time frame for shopping.) The results were close enough to conclude that recommendations don’t matter much, might as well pick by highest yield, lowest expense ratios, throwing darts, whatever.
For day traders, flippers and the $2 bettor — playing the long shot over the favorite gives a 67% chance of winning versus 0% chance for the favorite. Mid-pack gives a 40% chance of winning.
BofA’s Top-Rated Funds
Global X US Preferred ETF (NYSEARCA:PFFD) down 3.5%
iShares Preferred & Income Securities ETF (NASDAQ:PFF) down 2.8%
VanEck Preferred Securities ex-Financials ETF (NYSEARCA:PFXF) down 3.8%
BofA’s Neutral-Rated Funds
Invesco Preferred ETF (NYSEARCA:PGX) down 3.8%
SPDR ICE Preferred Securities ETF (PSK) down 5.5%
Invesco Financial Preferred ETF (PGF) down 3.7%
Principal Spectrum Preferred Securities Active ETF (PREF) Up 3.25%
Invesco Variable Rate Preferred ETF (VRP) Up 2.1%
BofA’s Bottom-Rated Funds
Global X SuperIncome Preferred ETF (SPFF) down 3.8%
First Trust Institutional Preferred Securities & Income ETF (FPEI) Up 3.0%
First Trust Preferred Securities and Income ETF (FPE) Up 2.5%
JMO. DYODD.
Bear thanks for the research. I have been winnowing some of my preferred maybe purchased as far back as 2023? The reason is they have been slowly sinking back to what I paid for them. So I have collected several dividends and am still positive on capital gains, of course the capital gains are not as good as say 3 months ago. I’m hoping they fall back closer to what I paid so I can pick up again. At least that is the plan.
good commment… interesting that PFFA was not noted at all …I posted this on another blog
PFFA has signficantly outperformed since march 2020…the data you are citing reflects significant undeperformance from inception in may 2018 to march 2020 lows ..in fact ALL of the underperformance occurred during the first 3 months of 2020
The Virtus InfraCap U.S. Preferred Stock ETF (PFFA) has shown varied performance over the years:
2024: Annual return of 16.08%, outperforming its category average of 9.60%.
2023: A strong year with a return of 26.49%, compared to the category’s 9.70%.
2022: Faced challenges with a negative return of -20.88%, while the category averaged -14.82%.
2021: Rebounded with a return of 23.52%, surpassing the category’s 6.23%.
2020: A decline of -7.85%, against the category’s 4.83%.
2019: Exceptional performance with a return of 31.97%, far above the category’s 17.63%
I recently added to long as the pffa/pff leveraged pair is trading bottom of 1 yr uptrend
Only due to your opening line …. Wheat….
I am not involved with the commodity trdng area, and not sure how negative the tariff topic affects that area. Saw an interesting item a week or so back on the Wheat mkt …. and an ETF ( WEAT ) that only is focused on that commodity.
Recent 26 week look back on the ETF shows a 26wk avg prx of the ETF at $4.95 …. Today at $4.75.
Opened a position, and using it as vested tracker on grain mkt going forward in 2025.
Probably off topic to your posting ……
Haven’t heard much recently about speculation if Chimera is going to call any of their preferreds. I own some CIM-D, which has now dropped almost a buck since last August and now floating paying almost 11%. I would think CIM-D would make some sense if they were going to redeem any preferreds. If they don’t I hope the price stabilizes and I will collect the fat dividend to offset the price drop. Chimera is not the best of the litter when it comes to MREITs and the common has been beat up in the last month or so too.
dj,
CIM is paying a dividend on it’s common stock and there recently has been some inside buying. For now I’m guessing my CIM-D is safe and I like the 10%+ dividend. It’s current price is 24.16 so if it’s called that’s also OK.
I added to CIM-B on the drop. And swapped over from CIMO which pays too much less. Nervous about owning too much but looks like a bargain despite the risk. Not expecting a Call, which would be welcome. Not sure why you think D would be called ahead of B which pays more.
From Citywire RIA:
Schwab and Fidelity block orders of money market ETFs from BlackRock, Texas Capital
The move by the platforms applies to three ETFs: the iShares Government Money Market ETF and iShares Prime Money Market ETF offered by BlackRock and the Texas Capital Government Money Market Fund.
What are the odds of this:
There are 1.65 million registered voters in Clark county NV.
I go for jury duty again today, hoping to get out of it because I recently served.
After 3 hours of waiting, lining up, and hearing excuses the first group of 25 is seated for voire dire and I immediately recognize the defense counsel as my next door neighbor (insurance defense) and the plaintiff as someone I previously worked with !
A securities attorney I’m working with asked me to post this in places that preferrreds investors might see. I would highly recommend contacting her if you have owned STT-G (although the email address isn’t for the attorney I work with).
Dilworth Paxson is investigating State Street Bank’s violations of federal law with respect to its Series G fixed-to-floating stock (NYSE:STT.PRG). If you are, or were, a holder of State Street Series G preferred stock and are willing to share your experience, contact mheinzerling@dilworthlaw.com.
A good essay examining Stephen Miran’s (Chair of President Trump’s Council of Economic Advisors) plan (“A Users Guide To Restructuring The Global Trading System”) for tariffs and the dollar.
https://alhambrapartners.com/weekly-market-pulse-a-risky-plan/?src=news
“It is also a plan riddled with inconsistencies and contradictory aims. The most obvious problem is that a weaker dollar and “currency offset” for tariffs cannot be accomplished simultaneously because they require opposite moves in the dollar. What is currency offset and why is it important to the administration? When the US imposes tariffs on another country, standard trade theory predicts a rise in the dollar and a fall in the currency of the country being tariffed. There has been a lot made of the fact that tariffs were not inflationary in Trump’s first term and currency offset is the reason. Most of the tariffs in his first term were against China and the dollar did rise against the Yuan after the imposition of tariffs.”
Hard to believe tariffs are a good idea.
I see us in a recession with higher inflation.
If we have a recession it’s likely due to a combination of factors both current and long term issues. I’m not expecting high Inflation unless the Fed goes wild with monetary expansion again, aren’t budget cuts supposed to avoid that? Tariffs raise costs much like any sales tax would but not the cause of spiraling Inflation without the money printing. Multi-faceted issue.
Wondering why NYMTG BB is getting dumped for the last 8 or so days.
NYMTG ex-div for 57 cents on March 14, followed by a downside overshoot. Similar NYMTI didn’t overshoot.
Thx- but is down almost a dollar, not improving.
NYMTG had a partial dividend of .4879 because it was new and less than 90 days to first pay. Is that why clueless investors are paying less for it? I swapped from NYMTI, easy choice. NYMT not the safest REIT but nearly 10% YTM for a term issue is better than its peers even MITN/P which may be just as risky.
I’m also in MYMTM for the dividend capture Friday.
Although it does not negate your premise, there’s only 15 cents difference to equate the 2 on a YTM basis and with a 9 month difference between maturities equal would be close to proper… Is 15 -20 cents sufficient spread for you to play between these two or would you normally be targeting wider arb spreads to play?
1 or 2 cents is what I would rate an earlier 9 month redemption. They’re basically the same thing, though the more below par the more it matters.. When you’re looking at 50 years that’s a bigger spread.
And it’s more like 25 cent difference now.
I’m just picking your brain, mg, nothing else . – just wondering how close a spread you usually are willing to play between 2 essentially identical issues like this one and the 2 long LAND issues as another example…. What I’m saying is at 24.25, NYMTG has a YTM of 10.459%. NYMTI would have a price of 24.40 to have the same 10.459% YTM. That’s the 15 cents spread I’m talking about that would equate the 2, and maybe it should be like you said even a penny or two tighter because the 9 month shorter [I] issue could conceivably be worth maybe up to 5 basis more (less yield) than G, right? So does that enter into your willingness to trade between the two? Either way, if you’re willing to play NYMT, then G remains slightly better than I right now, I agree….
I looked at the charts of five homebuilders. They’re all down 30-40% from their 2024 all-time highs. UFPI and BLDR manufacture and supply building materials such as manufactured wood products. Their stocks are down 25% and 40% respectively.
These companies, along with all of the other businesses dependent on new construction such as furniture manufacturers, form an important part of the cyclical economy. According to Eric Basmajian, the cyclical economy, although not huge, is the part that matters in the period before a recession. Watching.
Monthly chart of WFC-L from 2008 before the GFC dump.
https://www.tradingview.com/x/wFMdp2mF/
The purpose of the chart is to demonstrate that the price of WFC-L is mostly a function of TYX, the 30-year treasury yield index (actually the inverse).
It’s a fixed rate, perpetual non-callable busted convertible. No supririse it moves inverse with the long term rate forecasts. Look at 10 and 5 year and should see similar movement.
Here’s a narrative that has some credibility and is not stagflation: The economy weakens and inflation falls. If this were to happen without a credit event/crisis, I’d expect 2-3 rate cuts at the short end and lower yields at the long end. Investment-wise, I’d buy some solid fixed yield now.
If the above turned into something worse, I would save my cash now for the opportunity to buy high-quality corporates and preferreds at a big discount later.
Rocks, listening to the news on the radio today and they said all the airlines are going to report lower earnings this quarter. So far, the airlines have not changed their guidance for the year. But they said peoples uncertainty about the economy, government cutbacks on travel, and worry about traveling to countries unhappy with Americans and of course other countries cutting back on travel to here. Just waiting to hear more.
Charles , I thought all the airlines warned on earnings
I’ll believe it when I see it.
Live in Florida and frequent hot tourist areas, travel domestic and internationally a decent amount. American tourist spending in full effect, even if it is all being charged onto credit cards.
Its Spring Break down in Florida so for residents like me, it is a great time to allow the tourist to pay my taxes, and I get the hell out and go someplace else.
rocks
Good thinking.
Only issue you omitted was Treasury sales.
Too many? Buyers?
No predictions here but not as confident about long-end declining.
Westie-
I’m trying to think through possibilities for the next year–other than the popular stagflation narrative–and how to play them.
What will be the effects of supply/demand for new issue long-end treasuries on their yields? Treasury will continue to emphasize bills. Retail may want some safety. I think a bad employment report will push yields lower.
rocks
Yeah, we’re all trying to figure the long-term yield out.
IMHO
Current administration is having its way jawboning whatever outcome it wants. almost everywhere. It is demanding lower long term rates to help cushion the short run effects of its tariffs (maybe) and layoffs.
Plus
When the time comes, Congress extends the 2017 tax cuts.
All totaling large increases in the deficit needing to be financed.
Can’t say where/when I saw it, but one of the knowledgeable talking heads showed that the Fed’s QE/QT vacillations impact upon liquidity were overshadowed by changes in the repo rates – ie, don’t get too focused on them.
My big-picture outlook:
We are going to need more and more buyers of our debt in an environment where we are actively pissing off the largest buyers of our debt.
To me, all the pressure is on the upside for the long rates.
[In most dictatorial governments, banks/central bank are ordered to buy the debt. Maybe that might be the solution.]
Westie-
Agree. Gov’t cost cutting will have only a minor impact, if any everything considered, on deficit spending and the rising interest cost. Who will buy the debt? How about the buyer of last resort? QE this year?
RLJ-A (7.8% cum perp preferred) is non-callable but convertible if the common is at 89.09 for 20 days (extremely unlikely). RLJ is a hotel REIT. The common has been weak. RLJ-A is the #5 holding of PFFA and has mostly stayed near par since Dec. Next ex-div Mar 31 for 49 cents.
I don’t see why RLJ-A should have a special exemption from gravity other than the high coupon. Watching.
it’s got 44 cents div baked into the price is why imho
Rock,
I love that “special exemption from gravity” line.
It reminded me of Austen Goolsbee saying “parachuting through space” this morning on CNBC before Joe Kernan reminded him you can’t parachute in space.
I wonder why Etrade has such a poor alert system- unlike Fidelity’s that actually notifies you in one or three ways, Etrade requires constant checking of their antiquated dropdown menu – or just try to keep it open.
Unless I’ve missed something.
Gary, it’s not just E-Trade. Schwab sent me a notice on 3/18 that my AIC (Arlington) shares will be maturing soon. They redeemed them on 3/17.
“You have a security in your account that is scheduled to mature on March 17, 2025.” Email dated 4:40am 3/18/25 – about 16 hours after the money was deposited……… Granted, they had been showing in my account with a 3/15 maturity for months, so I was well aware of the redemption. I’ve had the same thing happen at Fidelity. It’s, nevertheless, annoying though that they can’t be a little more timely in their announcements.
Hmm… needed to try a different browser on may Macbook- both firefox and chrom bring up a blank screen after hitting logon. Anybody having the same problem?
I had an issue recently, finally , logged out and then back in … and all OK.
No issue with Etrade- except with a notification was not responding properly.
The other two won’t work at all – even now.
thx
NEWT Notes :
https://www.sec.gov/ix?doc=/Archives/edgar/data/0001587987/000158798725000053/newt-20250320.htm
On March 19, 2025, NewtekOne, Inc. (the “Company”) completed an exempt offering of $30.0 million aggregate principal amount of its 8.375% notes due 2030 (the “Notes” and the “Offering”). The Offering was consummated pursuant to the terms of a purchase agreement (the “Purchase Agreement”) dated March 19, 2025 between the Company and eleven institutional accredited investors (the “Purchasers”). The Purchase Agreement provided for the Notes to be issued to the Purchasers in a private placement in reliance on Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”). The Company relied upon this exemption from registration based in part on representations made by the Purchasers. The Notes have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration. The net proceeds from the sale of the Notes were approximately $29.250 million, after deducting estimated offering expenses payable by the Company. The Company intends to use the net proceeds from the sale of the Notes to refinance existing indebtedness, with remaining proceeds, if any, for general corporate purposes (including payment of expenses incurred in connection with the issuance of the Notes, providing capital to Newtek Bank, National Association, and other working capital purposes).
The Notes will mature on April 1, 2030. The Notes may be redeemed by the Company, at its option, at a make-whole price at any time prior to January 1, 2030, or at a price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, if any, thereafter. The Notes bear interest at a rate of 8.375% per year payable semiannually on April 1 and October 1 each year, beginning on October 1, 2025. The Notes will be the Company’s direct unsecured obligations and rank pari passu, or equal, with all outstanding and future unsecured unsubordinated indebtedness issued by the Company. The Notes will be effectively subordinated to the Company’s existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness, and structurally subordinated to all existing and future indebtedness and other obligations of any of the Company’s subsidiaries.
There was a slick banker named Barry
The pace of issuance was quite scary
Sleight of hand was blurring
The income being non-recurring
Investors should be quite wary
———————————————–
I have no axe to grind — I bought 3 baby bonds on issue and came out fine all three times. But why would you hold the Z at this price?
Well as far as limerick creators go, better keep your day job, af…. LOL
You do have a point though, but even at 24.96 the YTM is 6.60% and for 10 month paper, that’s still not too bad and it is a maturity range I’m finding hard to want to extend right now… That’s not to say that stubbornness and inertia are not more of a reason than anything else, because I’m sure it is…. I did manage to unload a good chunk at the end of the year at 25.25, though, so that’s something…. Then there’s also the practical reason why I’ve continued to hold these, which I am currently addressing as we speak. My remaining shares are at Fidelity, so selling a large amount on a single trade is impossible…. So I just coincidentally initiated moving my shares to Schwab today along with 6 other names that Fido has deemed me too stupid to have accumulated at their firm. Thanks, Fido…. I think I’ll transfer a good chunk of cash out too, just my way of thanking them for looking out for this stupid ignoramus for owning/buying these at their firm..
BS did finagle an upgrade!
https://www.investing.com/news/company-news/newtekone-secures-30m-in-notes-credit-rating-rises-93CH-3939313
Af,
It’s our friends at Egan-Jones doing the upgrading.
2WR I had to call today and first off the AI wouldn’t recognize my log in # on the phone twice. My concern went through the roof that someone had hijacked our accounts. I was trying to put in a limit order and even though the screen on my computer showed over 9,000 shares had traded it wouldn’t let me place an order to sell 581.
The lady who answered put me on hold and came back to tell me I could only sell 510 shares. I asked why. She started giving me the BS that it was because the SEC had deemed my trade would upset the market due to the amount I was trying to sell! by this time volume was up over 10,000
First time I had ever lost my patience over this in all the months this has been going on. I demanded to speak to a manager. I suspect I got this lady because I called the 800 # that showed up on the screen which my cell is identifying as Shapiro financial security
What the H is the 800 544-6666 popping on my Fidelity trade screen and the phone company is identifying it as someone else?
Has someone hijacked this number and every time I am being put on hold it’s because someone is accessing the account and saying they are Fidelity?
I will try calling again during business hours.
2 White a question ; for you please
are you migrated from Edge to T or S on Schwab? I will be force converted
on June 13; I can’t figure out T or S after much trying ; so I’ll have to move
all my accounts to another Broker with a simple to use Trading Platform
like Edge ; would Fidelity be where I should go ?
thanks for any advise
I came to Schwab via TDAmeritrade so I was comfortable with TOS and considered it my primary trading platform vs Active Trader Pro and Power ETrade before getting Schwabbed. Personally, had they kiboshed TOS, I would have gone elsewhere. However, I’m thoroughly convinced my TOS preference is mainly because it was my first…. I use aspects from each… Also important to know is I hardly use any of the sophisticated stuff offered by any of them, so how I use them or how little of what they offer I actually use would most likely make a sophisticated or active trader chuckle….
I’m only moving the specific securities that I know Fido’s nannying to death and moving cash also, because, well I can and why hold cash at Fido that I suspect I will eventually want to put into additional populace of Nannydom… plus if I move enough in aggregate, I’ve gotten a promise from my Schwab rep that they will match my standing incentives being offered to me by ETrade.. I’d be tempted to move more into ETrade, but you essentially have the same MM problem and late dividend applications there that you have at Schwab but I don’t have an established IRA account there so it’s more difficult to move from both accnts to ETrade – Additionally, not for any particularly rational reason, I want to keep my house sale proceeds at ETRade not commingled with other funds at least for this year…
Does this help?
2WR, we never forget our first!!!
Honest query. What am I missing with this “trading platform’ angle people are going on about? I just go to website and trade. I don’t understand this angst people have about “trading platform”. I put that in quotations not out of disrespect, more out of not understanding at all what a trading platform is or why I need that verse just simply trading via the normal website. Maybe it’s my penchant for simplicity thats confusing me. Any way you can elaborate what these various platforms provide that I might want to use those instead of the website? I know I speak from maybe a humorous ignorant position.
Keep in mind, pig, this is coming from the guy who doesn’t use spreadsheets so maybe these platforms are entirely replaceable for the more creative, but for me, using them is an easy way to watch overall market activity as seen thru the eyes of an unlimited number of self created watchlists all in one place…. I can easily get a feel for the overall market plus see customizable charts of price performance over any length of time, etc. I can also see Level II quotes, including depth of bidding to better know where to place stink bids and because of using more than one platform, I see different interpretations on what Level II is telling me. I also can see actual trades immediately including size no matter how small and where the bid and asked was at the time of the trade. You can set trade alarms which I don’t use to alert you when a stock hits a particular price and create conditional trades, etc., again which I don’t do. Also right inside TOS there’s a great news streaming service that I keep running all day which occasionally generates some good gems. Also these platforms seem to more and more provide all kinds of links to options and how to view them etc., but again, I pass on that aspect… So for me, they are a great way to consolidate how and where I can get a read on what’s going on across the board and also on my particular stock symbols of choice. Are there alternative ways to accomplish the same thing? Probably,but the platforms work for me…. BTW, at least on Fido, you can use Active Trader to research and place fixed income trades as well.
2WR. Much appreciated. Apparently I have much to learn about these platforms. My investing world does seem way more simple than most.
Ted,
I am getting shoved to ToS in late May. I have been on streetsmart edge for a bunch of years. Far from perfect, but I have deciphered most of its quirks. Not looking forward to the change. ToS isn’t necessarily terrible, it is just a big learning curve (I hate learning new tools).
If you talk to your schwab rep, they can set up one (or more) one on one calls with a transition specialist who can talk you through ToS and help you set it up in a way that is understandable to you. I am trying to learn ToS, but I am having a hard time scraping together the time to really dig into it.
Big caveat – you need to decide right up front whether you want to use the “downloaded on your PC” version or the web version. they are different from each other and not compatible with each other. I point this out because they had me trying to set up the web version (which I consider to be pretty poor) before the specialist said “maybe you would be happier on the PC version”. Surprised me that they were so different.
Private-
Since I like charts, here’s how I use ToS. No lists. I make notes on the charts of stocks I’m interested in or own. The notes tell me everything I need to know. I draw a line at my purchase cost. I set alerts at prices of interest.
Everything else I need to know about my holdings or stocks of interest is laid out in a tell-all spreadsheet.
CpN … Citi TRUPS ….. Long past the call, yet stable history above $30.00
I have owned long time & like it in the $30 area, recent closes in the $30.07 area. Any holders , comments.
Own it and love it at my cost basis of $27.50. Looking to add it at $30.00 and below.
Barron’s had a 2023 article on C/N. It discusses the reasons why it hasn’t been called yet.
Here is an article on SA about C/N. In the comments section, “filly1776” was kind enough to post the reprint of the Barron’s article. See his comment from Nov 5, 2023.
https://seekingalpha.com/article/4280404-citigroup-capital-xiii-why-im-long-this-safe-high-yielder
Based on Citi’s comment to Barron’s for that article, I believe call risk still exists. They continue to assess the option to call C-N:
“If we were to redeem this, we would take a large hit to our P&L. And that’s just the way that the bookkeeping has worked on that security,” said Citigroup chief financial officer John Gerspach in 2017 on a conference call.
“The decision to redeem that security is largely an economic one. Is it worth taking a large loss to redeem?”
In a statement to Barron’s, Citigroup said: “As we’ve stated in the past, due to this grandfathered security’s carrying value on the balance sheet, it’s more attractive economically to leave it outstanding rather than to call it
at this time. We continue to assess this on an ongoing basis.”
Interesting CD offering: 5% apy 18 months .Mountain America Credit Union (they have over 1 mill members). You can join by paying a few bucks to join the American Consumer Counsel.
No limit on the above.
Offering an add on certificate up to $100k also at the same rate. I’ll go for the add on as a free right to put up to $99,000 more in the cert.
As of May 2024, Mountain America had over $19B in assets (stale Weiss ratings).
https://weissratings.com/en/credit-union/257
Thursday @ 7:15am ET …..In addition to the U.S. Tsys lower in yld ….
2yr to 3.94% ….. 10yr to 4.20% …..
Euro Rates lower also …. Bund down 3bp …. UK down 7bp
Inflation not an issue, I guess ….. yet like it.
UMBFP X-DIV DATE : In case anyone’s wondering, the UMBFP x-div date will be March 31. Given this is a first as UMBF, I know Fidelity, for example, does not have it listed and the info on QOL is not definitive.
https://investorrelations.umb.com/news/news-details/2025/UMB-Financial-Corporation-Announces-Dividend-on-Series-A-Preferred-Stock-Nasdaq-UMBFP/default.aspx
UMB Financial Corporation Announces Dividend on Series A Preferred Stock; Nasdaq UMBFP
March 12, 2025
KANSAS CITY, Mo.–(BUSINESS WIRE)– UMB Financial Corporation (Nasdaq: UMBF), a financial services company, announced today that its Board of Directors approved a dividend of $175 per share of the Company’s Series A 7.00% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock (the “UMB Preferred Stock”), which results in a dividend of $0.4375 per depositary share. The dividend is payable April 15, 2025, to holders of record of the UMB Preferred Stock as of the close of business on March 31, 2025.
UMB Financial acquired Heartland Financial (HTLF) on January 31, 2025. Shares of the former HTLF Series E Preferred Stock (the “HTLF Preferred Stock”), were converted to shares of UMB Preferred Stock at an exchange rate of one-for-one in connection with the acquisition, providing stockholders of the HTLF Preferred Stock with shares of UMB Preferred Stock with the same terms.
UMBFP closed today at 25.34 wit .316 in accrued..
I’ll take that $175 dividend. Hope it wasn’t a typo.
2wr, thank you.
Similar YTC to WTFCP/M. All three set to float/reset/be called on 7/15/25.
Could be swap opportunities among these, to gain some YTC. Seems to me WTFCM has more (though still maybe less than 50%) chance than the other two of hanging around. I’d hate to swap into WTFCM and then they let the others reset!
SHY, WFC-L, PFF, LQD and JNK all moved higher today after the FOMC statement. The end of QT might have had something to do with it.
Are you ready for “Liberation Day?”
April 2nd is purported to be the day when thousands(millions?) of reciprocal tariffs are to be announced and applied.
Do you care?
Buy and hold?
Or trade?
Lots to think about beforehand…..
– Announced/not announced/announced but postponed?
– Economic effect?
– “Buy the rumor, sell the news?”
– Ignore the first hour of trading – that’s retail reaction. The last hour is when the pros step in.
????????????
Gonna be interesting.
I’m planning many out-of-the-money Buys/Sells
IMHO
April 2nd bears a lot of the responsibility for today’s Fed “stay the course” decision.
I’ve never been good at predicting the future based on geopoiltics. Let partisans fret over their bias I’ll stay nimble and react to whatever the market does like I always do.
Martin, I have a few low ball bids on some international stocks. On the other front ADM is contemplating selling its futures business and a seed oil processing plant in Bolivia. I suspect it’s shedding high risk and non essential segments of the business to pay down debt and maintain the dividend. Might be a good play on a low ball bid.
If it looks like it’s actually going to happen, I’ll short the hell out of the market in twelve days.
i bought some s%p puts as a hedge. may expiration 5% below the market if more tarrifs get delayed ill sell them but i highly doubt they will be and i expect a sharp sell off at least initially. thought about buying april puts but time decay would be to high for me with only 2 weeks to expiration after april 2
Westie, I thought I had shed a few stocks that have a higher risk and cancelled some bids. Now I think I need to go back and look at my bids again and maybe cancel more or lower my offering price.
Summary of FOMC statement:
https://www.axios.com/2025/03/19/federal-reserve-interest-rates
As I suspected, the amount of QT was reduced starting next month, which for the Fed is ASAP.
“Under the change to its “quantitative tightening” the Fed will allow the portfolio of Treasury securities on its balance sheet to fall by only $5 billion a month, not the current $25 billion.”
The Fed will be buying more treasuries and adding to the reserves of banks. The move should help stabilize or increase financial market liquidity.