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.
Here’s a good question regarding the ACP aquisition of FSD. I own ACP and my concern is that ACP has a dividend yield of 18.52%. They take over FSD, and FSD yields less at 12.26%. So, it would stand to reason that ACP will have to cut their dividend (?) I’m not sure of the ratio of ACP to FSD assets, but let’s say it’s 50-50. You can’t just start paying 18.52% dividend on FSD holdings that were netting 12.26%, so the whole new blended entity will have ACP holders seeing a dividend cut. On a theoretical 50-50, you have: (18.52 + 12.26) / 2 = 15.39 average yield, therefore 15.59/18.52 would mean a 17% dividend cut should be coming if the combined pool were 50-50. Whatever the ratio is, a dividend cut has to be coming for ACP????
Been accumulating RITMpB at 25.00 or slightly higher; it’s a 7.125% coupon
started floating 7/15/24 SOFR + 5.64% ; I estimate the new div rate to be about 11% ;; old div. $1.78 new div $2.75 ;
I have found this to be an excellent way to find undervalued securities; buy in anticipation of a float/reset;
another good one recently SNVpE Reset 7/15/24 ; it Reset and wasn’t called
the ceo implied during the last earnings call that both the A and the B would be called. nothing official yet but that’s my guess.
i still own some B but have moved all my A holdings to the C
the ex was 7/15 and it’s still trading today ; 11 days later; doesn’t that mean it’s not called -at least until 10/15?
I think companies also need to give notice (maybe 30 days) before a call ;
I’m not clear on any of this ;so maybe someone here can enlighten me ;?
RITM-D if called isn’t a great deal just a mediocre gain but very nice if not called. I switched heavily into RITM-D. Like the REIT, the D series has a better floating rate if T rates ever align with SOFR which tends to happen at lower numbers. At higher rates who cares, we’re making money anyway.
\
meant RITM-A is nit a great deal. My 10 minutes expired before I noticed.
Own RITM A, B, D and SNV-E reset at 8.5% for 5 yrs
I own a starter amount of B as well. Aren’t you off by one month on the float date? I think it begins to float on 8/15/24 as per https://www.sec.gov/Archives/edgar/data/1556593/000114036119014764/nt10003707x4_424b5.htm#tDSP That being said, they’ve already passed the date whereby they could call these on 8/15 given the minimum 30 day advanced notification requirement so we will experience some of the float rate even if they do issue a call notice soon.
Also do you know if they’ve officially adopted SOFR? Has this been discussed already??
I don’t know if they’ve announced anything since late April, but back then they said (in their 10-Q for q1) they don’t plan to amend the fallback language in the prospectuses, and that language is:
“If, after such consultation, the Calculation Agent determines that there is an industry accepted substitute or successor base rate, the Calculation Agent shall use such substitute or successor base rate.”
To me that says they’ll use SOFR.
On page 70 in their q1 10-Q:
Rithm Capital completed its transition from LIBOR to an appropriate alternative benchmark, mainly the SOFR, in June 2023. We do not currently intend to amend our 7.50% Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (“Series A”), 7.125% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (“Series B”), or 6.375% Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (“Series C”) to change the existing USD-LIBOR cessation fallback language.
thnx mbg….
Does anyone recall any discussion recently on Fortress Aviation preferreds FTAIP and FTAIO? I’ve searched and not found anything much on them. Both float, one in September, the other in December and both have first call dates at those times also. Was wondering about the probability of them being called. Fortress Aviation looks pretty solid and thinking about a short term play with one of them.
DJ, If you are interested in these, buy only in a retirement account as FTAI was classified as a PFIC for 2023 and probably will be again in 2024. PFIC tax filing can be a nightmare, much worse than K1. I own the common and FTAIM in retirement accounts
I was thinking of them in my Roth. Sounds like if you hold them there you don’t fall in that black hole. What a nightmare though if you do though. Worse than MLPs and their UBTI. Thanks for the heads up!
Had them for years with no issues
DJ I love these FTAI Preferreds; I have FTAIM now;
but I’de say that’s a reasonable buy ;they are trading around 25.30 but the stripped price is 25.00 today ;
Ted, so at tax filing you don’t have to fill forms out? I presume you hold them in an IRA and you get a 1099R if you withdraw funds from the IRA.
Not if they are in an IRA. (of any kind)
Dj,
In their Q1 CC, they said they planned on refinancing them before their reset dates, and that they continue to reasses that.
They just had their Q2 conference call. I checked the transcript and didn’t see any update on their plans.
Here’s the comment from their Q1 conference call:
Hillary Cacanando
Hi. Thank you for taking my question. So this one for Angela. Angela you have two preferreds that go from fixed to floating this year one in September and one in December. Obviously, you’ve had some great returns on those preferred securities. Could you talk about what your plans are for them?
Angela Nam
Sure. Hi, Hillary. So, yes, you’re correct in our Series As and Bs are converting to floating later this year. And we’re currently planning on refinancing those preferreds before those reset dates. So we continue to reassess that.
https://seekingalpha.com/article/4686706-ftai-aviation-ltd-ftai-q1-2024-earnings-call-transcript
erich, thanks for the head’s up on PFIC.
Darn, I was hoping to buy more BMY if it continued to hover around 39 to 41 a share. Big pop on the price today after reporting 2nd qtr results. I don’t like buying on the upswing.
Same with IBRX at one time shorts were at 53% now 7% don’t expect much when they report 2nd qtr results in 2 weeks.
WHR moved up on takeover rumors and I sold out around the high, dropped back down and had a small pop in stock price when 2nd qtr. was reported they did decent, but now it’s drifting lower. May re-enter if it retraces it’s lows
Charles:
So shouldn’t your post on BMY, WHR, and IBRX be in the “Common Stock Chat” forum that Tim created? Otherwise the Sandbox page starts to become mud.
Charles M says:
07/26/2024 at 8:23 am
GS, I wouldn’t consider TPTA and TFSA illiquid preferred. Your post should have been in the REIT section. And no, I am not the Nanny police but I have been noticing a lot of posts lately that seem to be outside the forums Tim set up. It makes it hard to follow posts on illiquids and REITS when the posts start to get jumbled up.
Sand box is fine for general commentary or common stock chat, either one seems to me. But REIT baby bonds are not illiquid securities.
Charles
Again we same to be pursuing the same ideas
ADM
PFE
BMY
I also got lucky early on RHHBY and ABBV
Not so lucky on CC
Westie, I like your list.
Two many opportunities for growth and dividend stocks. Actually probably the best time in a long time to grab something paying a 5% dividend with growth. It’s not all about tech.
Seeking A
Anyone else see strange things going on at SA right now? I don’t know if they’ve put me in the penalty box or something has happened but it looks as though every article that I have been monitoring when new comments are made have now been purged from my profile…. I tried putting in a new one today and that’s now posting but not one from a multitude of others that normally have multiple new comments posted daily… Is it just me?
my comments have been posting ; in fact I made 2 today
I wasn’t as much writing about an ability to post as opposed to an ability to be notified when new comments are being posted on articles that I am “following.”
2WR I was wondering that myself. For a while I was getting way too much and now maybe something from 2 days or 5 days ago keeps showing up but nothing new
Hi 2wr.
I’ve been getting notified of new comments on articles I follow.
How odd….. either you are special or Charles and I are not……..
Rida’s Revenge!
2WR I had 22 notifications this AM over there.. yesterday I had 57. I don’t need to be notified when someone does a like on my comments, it is beyond annoying, I can see if you have a marketplace service or are an ‘analyst’ writing you’d want to see your engagement, but not little old cat woman Bea.
I went to your profile as I follow you and ‘liked’ and commented some nonsense on a few, see if they show up in your ‘notifications’. B
Hmmmmmmmmmm, maybe it was just a one day snafu at SA as all your likes showed up and some (but probably not all) of my old articles followed are now posting new comments again… thanks for your efforts.
2white ; i don’t get Notifications ; I go to “my Analysts” on SA and it lists all the articles that were posted that day ; or any previous day
I try to cut down on Notifications (get too many already)
MGRE (6.75% BBB- junior baby bond 3/30/64, call 3/30/29) touched 25.1 today, the lowest since the March launch. For reference, the similar MGR (5.875% BB) has a CY of 6.5%
I noticed this from Nasdaq:
“Large Distributions
Nasdaq Rule 11140(b)(2) establishes the ex-dividend date for cash dividends or distributions, stock dividends and/or splits, and the distribution of warrants, which are 25% or greater of the value of the subject security. These distributions are declared ex-dividend on the first business day following the payable date for the distribution.”
Q: How can the ex possibly after the pay date? What if you bought it on the pay date? That would be the usual one day before the ex, entitling you to the div? Weird wording.
thx
That is correct. It is called the 25% rule. But you can’t bank on it. For instance, it often will not apply to foreign companies with ADR receipts, and not every exchange applies it the same way.
It prevents wild swings in stock prices on the ex-dividend date which might affect margin calls etc… where 25% of the value of the stock may disappear as the price is adjusted for the dividend, but you don’t have the dividend to make up for it. Often times on these large dividends if you buy or sell between the ex-dividend date or the payment date then the stock will have a “due bill” attached to it that means the dividend goes with it. So you might own it through the ex-dividend date, but if you sell it before the payment date then the person who buys it gets a due bill for the amount of the dividend which comes out of your account so they effectively get the dividend.
I have made money knowing these rules, but it is easier to lose money not knowing them.
Are you seeing this on any particular securities of interest?
Thanks for that info — makes my head spin to think of it trying to fit it to my
set forever view of ex & pay dates.
this is a difficult concept to get your head around ;and the term “trades with due bills” is equally confusing ; used to drive us crazy when I was working in the Brokerage biz
An unusual day on the yield curve: the 2-year yield is down and the 30-year yield is up, putting the 30-year above the 2-year by 12 bps. The spread was positive four other times since the March 2023 -118 bps low with this being the largest.
On the lighter side, check out this misspelled subhead on BBG today:
“Her comments thrust the 900-page conservative manifesto by a right-leaning think thank even more forcefully into the spotlight.”
Hi, I don’t post a lot unless I think I have something to offer that might be useful as I’ve found this site useful to me over the years. However, I regret a little bit not sharing this sooner with today’s action, but I wanted to share that I’ve been reducing my Preferred exposure over time and swapping into more traditional debt securities. As an example, say 5 years ago, the primary income account had 20+% exposure to Preferred securities, which is now down to 10%. Traditional fixed income has gone from the low teens to just over 25% now, and the ratings grade levels are significantly higher now than the past when we had negative rates. It’s always been about generating a specific level of income, and I’m now able to do this with higher quality lower volatility securities. I’ll always still have some preferreds most likely since I do think there are certain issues, often lower liquidity names, that provide more yield but in terms of solvency risk are effectively investment grade in my eyes. In general though, I’ve removed a lot of risk, and I do think there’s some risk near time for spreads to widen. Hence, just wanted to offer my thoughts in case it helps anyone else out there to dig some more or think about their options. All the best. –NCSI
Has anyone heard from Gridbird lately? Is he in hiding while preparing to defend himself against kaptain lou’s SEC Police over the MSEXP deal?
quiet on SA one post 2wk ago one like 7/15, he is in PST/TV service but I am not, I do remember him saying he was not active in the chat etc. I pm’d him but no reply which is fine, he has always been nice to me. so has Lou. Are these sites turning into yahoo2008?? Saint Ann Margaret preserve us.
Hopefully he hit the big progressive slot in LV and is so rich he never has to do anything again but play golf. Megamillions is up to 251mil, Malibu beach house here we come.. lol. I guess I can tell mom she has a Dr appt the only thing I can get her out of the house for anymore. Maybe take a tour bus ‘country style’ loaded up and get her out there she wont fly.
Hovnanian (HOV) thinks it is Nvidia these days, almost 200. Long the pfds. I stopped posting on CEO.CA mostly gold/energy stocks, as nutso as Stockhouse anymore up there. Must be the world we live in. glta/ Bea
Bea I used to follow miners on Stock house CA but I felt two many comments were from boiler room pump and dump scammers so I quit following and posting on there.
I have been out of contact for a couple of weeks and am trying to catch up (even my RSS reader overflowed), but I too wondered where Mr. Grid was. I thought maybe Tim had banned him for betting against a Minnesota team once too often…