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.

5,522 thoughts on “Sandbox Page”

  1. Many III’ers posted about the outsized, high yields of Credit Suisse corporate bonds BEFORE it failed and was taken over by UBS. The bond market did a good job sniffing out problems at CS. When it failed, the CoCo/At1’s were set to default as part of the deal. The CoCo’s I have looked at are “DTCC chilled” which means they are untradeable on most platforms. However, the non-COCO senior unsecured bonds continue to trade and continue to have outsized yields. For example, CUSIP 22550L2D2 , fixed 1.0%, maturing 5/5/23, traded a $5 million block (5,000 bonds) @ 99.375 with a YTM= 10.4% to the buyer. Does not seem rational to me after the marriage. On some platforms, the minimum trade size is 250 bonds ($250k face) on some of the CUSIPS.

    If you have confidence the marriage to UBS is good, you might consider some of these CS bonds. Your bond screener should show plenty of them to choose from.

    We own one longer term CS bond in one account, but are considering adding more of the presumably non-defaulted senior unsecured ones. We are NOT planning on buying any of the CoCo’s, even if they are tradeable.

    BTW, the much discussed Comerica (CMA) bond CUSIP 200340AS6 3.7% matures 7/31/23, also continues to trade was an outsized yield ~ 8.5%, which is way down from the highest YTM ~ 19.0% from a few weeks ago. We do own this in one account and plan on holding it to maturity.

    1. Is there any question about the UBS buyout going through? Who else would need to approve it?

      Have there been any public statements about how the non-COCO CS bonds will be handled?

  2. Grid- give me a shout if you come to New England. I will happily buy you a lobster roll or two. MSBIP, picked up at 19, sold at 24. Never heard of them until your mention.

    P.s. lobster rolls were running $30 per pop most places in Maine last summer, so don’t take my offer lightly !

    1. Congrats Maine. You made more on them than I did! I have tried to wean myself from the banks but have failed as they keep bouncing around and I keep rotating around buying and selling. Its been very very nice money trading around in the regionals.

      1. Glad to see you are off the CD’s. You were destined for greater things!

        P.S. I know you are still big on CD’s.

        1. Maine, I actually have those CDs on lock down and love them. We havent had a shot at 5% CDs in almost 15 years, so I am glad I went out to 5 year noncallables when they were there. For me its actually liberating and allowing me to trade more aggressively knowing that CD/IBond capital cant be destroyed, ha. Its been a great year. These banks are crazy traders!

          1. Ha, true. And we all have our own cash flow needs, so no need to be greedy if 5% gets you to your goal.

            On the other hand, I remember making the mistake of loading up on money market funds and short term cds coming out of the dot com bubble. My logic was “why lock it in longer when I can get liquidity and yield?”

            Also, as buffet reminds us, the best time to lock in risk assets is when rates are high.

            1. Maine, my thinking is opposite. Don’t hang out on the short end yield of yield curve because it will be gone when you need the yield. I locked in some long duration IG Ute debt last fall when yields were higher than lower stack preferreds. I locked in 5 year noncallables and would have done 10 years if they were noncallables.

  3. Bloomberg article on the rush into money market funds (I am pasting the whole thing because it isn’t visible to everyone who doesn’t have an account).

    Investors Seen Pouring $1.5 Trillion More Into the Safest Money Funds, Barclays Says
    • More cash set to move into government-only money-market funds
    • Search for safety and better rates are key to continuing trend

    By Liz McCormick
    April 5, 2023 at 12:01 PM PDT
    The wave of cash plowing into the safest of money-market mutual funds has only just begun with as much as another $1.5 trillion set to enter over the next year, according to Barclays Plc.

    Coffers of government-only money funds, which invest just in securities with virtually no credit risk such as Treasury bills and repurchase agreements, have already ballooned since fears of a banking-sector crisis erupted last month. A continued exodus from banks and rotation out of prime funds, which can buy more risky debt, will only further fuel that trend as investors search for higher yields and greater safety, Barclays says.
    “We expect money fund balances to increase sharply in the next year,” Barclays money-market strategist Joseph Abate wrote in a note to clients. “While it seems that the concerns about broader bank solvency are fading, they appear to have caught the attention of this deposit base. Institutional investors have noticed that they were not getting as much compensation for taking on unsecured bank risk by keeping bank deposits above the $250,000 insurance cap.”

    The amount of money parked at all money-market funds climbed to a fresh record last month as banking concerns unsettled global markets and attractive rates lured investors. Their cash pile jumped by roughly $304 billion in three weeks, bringing total assets to $5.2 trillion as of March 29, according to data from the Investment Company Institute. A fresh update from ICI will come out on Thursday.

    [there is a good graph here in the article, but I can’t post a picture]

    Besides the exit from banks amid fears of further runs in the wake of the demise of Silicon Valley Bank and two other regional banks, investors have pulled cash from deposit accounts as increases in those rates have trailed yields for money funds, which have better adjusted to the Federal Reserve’s most aggressive hiking cycle since the Volcker era. New York Fed researchers quantified that rate disparity and its effect on money flows this week in a blog post.

    One potential destination favored by government-only funds is the Fed’s reverse repo facility. But whether fresh cash mostly finds its way to so-called RRPs will depend on the supply of attractive alternatives. Money parked in RRPs last week jumped to its highest so far this year at $2.375 trillion, though has edged lower since.

    Projections for money-fund inflows signal “heavy future inflows into the Fed’s RRP,” Abate wrote. “But just how much goes into the Fed’s program depends on the availability of alternatives like bills and private sector repo, as well the willingness of fund managers to extend their portfolio weighted average maturities.” Yet the path for RRP balances is uncertain and swings in usage could create other issues, he said.
    “On-and-off swings in the use of the Fed’s RRP during QT caused by exogenous factors – like the supply of alternative assets and the effect of prime fund reform – could echo through overnight interest rates,” Abate said. “In turn, these rates could temporarily swing up and down, ‘self-correcting’ the reserves scarcity created by the RRP.”

    1. I noticed the CEO and CFO of CUBI are buying heavily. I think one increased his share count by around 20% and the other maybe 15% IIRC.

      CUBI-F is still languishing down in the $18-$19 dollar range so the market is not as gung-ho as the insiders.

        1. Their chief accountant also increased his shares by a high percentage since I posted that. Not sure how big a bet this is for some of these guys, but they seem confident.

    2. Odd discrepancy in ONBPO/Onbpp. Sold o at 25.6 and bought p at 24.4. Identical coupons and terms as far as I know.

  4. Fidelity now talking bank preferreds…

    Opportunities in bank preferred stocks

    Unlike managers of strategies that can only invest in a few types of assets, even if those may not present the most attractive opportunities, Kramer looks for high-quality assets whose prices have been temporarily pushed down by investors overreacting to uncertainty about the interest rates, economic growth, or other factors unrelated to the ability of the assets to deliver yield to the investor who holds them. “We’re investing in different asset classes that are not in traditional benchmarks,” he says.

    Besides tech company convertibles, investment-grade fixed-to-floating rate preferred stocks issued by big banks are another example of how this approach can find opportunities in unexpected places. Like tech stocks, bank stocks have been in the news recently for reasons that give many investors concern. Kramer believes that larger banks do not face the challenges or pose the same risks for investors that smaller ones do, and that their investment-grade debt presents a more attractive opportunity than do their dividend-paying stocks.

    Like tech companies, banks also issue securities other than stocks and Kramer believes that their fixed-to-floating rate preferred stocks may offer some of the most attractive opportunities among income investments in the months ahead and an alternative to the common stocks of these same companies. “Fixed-to-floating rate preferred stocks of large banks have offered yields 3 to 4 times higher than the dividends paid on the banks’ common stock,” he says. “As regulation increases, interest rates move lower, and the economy slows, bank earnings and dividends may be lower in the future. Meanwhile, investment-grade fixed-to-floating preferreds have been trading below their face value while also offering up to 4 times more income than those banks’ dividends offer. They also offer additional upside to par when their interest rates begin to float in 1 to 3 years.

    Despite these advantages, they have sold off along with bank stocks as investors worried first about how higher interest rates would affect them and then about how a recession could affect the financial health of the issuers. “Last year the bank preferred market sold off a lot more than the bank stocks, so the market had already priced in a lot of the risk into preferreds,” says Kramer.

  5. Bank preferreds mentioned in CNBC article:

    “Bank panic created this pocket of opportunity with yields nearing 8%, analysts say”

    “Of all the asset price movements driven by the banking panic in the past few weeks, one of the few notable pockets of value created in markets appears to be subordinated financial debt,” Citi said in a April 2 note, referring to preferred shares of banks.

        1. Has anyone looked at FCNCP lately? I just started building a position. The common stock (FCNCA) has gone parabolic since the acquisition of SVB but the preferred has drifted lower. It looks like they’ve paid dividends on their common for the last 33 years. The preferred is yielding around 6.5%.

  6. Very surprising, but of interest for this year:
    New Vehicle Sales in Q1 Jump 11.7%. Inventories Build, But Still Less than Half of 2019. Pent-up Demand at 6 Million Vehicles
    I was looking at a Rivian Truck last weekend and was more then impressed with the quality, styling and just have questions about the long term viability

    1. My biggest worry about a Rivian vehicle would be with the software support. if Rivian goes away, who will support all the software running the truck?

      Finding parts for a vehicle after the manufacturer goes away can be a challenge. I have a buddy whose hobby is to fabricate parts for “orphan” vehicles (I am going this weekend to help install a heat-treat furnace he just got at an auction – only weighs 500 pounds).

      However, for these new electric vehicles that are all software driven, the lack of software support could leave you with a very heavy brick.

      This is one reason why the electric vehicle (plug-in hybrid) we own is a Ford. I trust them to still be around in 5-10 years.

  7. This post is written in the spirit of constructive criticism and an offer of assistance. The III Sortable Spreadsheet is a valuable source of data. Over time dozens of data entry errors have been inadvertently incorporated. The following is a sample of some of the errors I have identified using Google formulas and summation.

    – 27 instances of an Issuer with “Current Price” not updating due to no formula in cell
    – 30 instances of a Issuer with “Change” not updating due to no formula in cell
    – 3 instances of an Issuer that will not filter properly due to an error in cell data
    – Inconsistencies in data computation, 45% of Issues use directly entered numerical data for “Quarterly Int/Div” while 65% use an appropriate formula. The directly entered numerical data is mostly two decimal places which causes numerous errors in yield calculations.

    The power to parse data into useful and concise presentations has improved over time. Using the III spreadsheet as a starting point I have made alterations and additions that in my opinion improve its functionality.

    – Addition of a Portfolio tab that automatically copies all data on the selected “Alpha” tab line with a simple click in a checkbox to the Portfolio tab. This feature permits a user to click on the Portfolio tab and see all the data, including automatic price updates and associated calculations, concerning his/her portfolio on one page. Additional user specific data such as shares held and purchase price can be entered on the Alpha tab and the data automatically flows to the portfolio tab. Calculations such as total portfolio value or capital loss/gain can be performed on the portfolio tab automatically with constant updates.

    – Addition of a Watchlist tab that functions in a manner similar to the portfolio tab by allowing a user to click in a checkbox on issues of interest and see them displayed on one page for comparison and review.

    While the Filter tab of the III spreadsheet is helpful, it lacks the ability to perform sophisticated presentations of data. Filtering that is not available in the III spreadsheet includes:

    – Filter for more than one data type per column, for example filter for Bank and MLP on the same screen or BB and Trust P on the same screen or BB+ and BBB for S&P Rating on the same screen.

    – Filter for data between two points, for example filter for Current Yield between 5.25% and 6.5%.

    The advanced Filter functions described above are available on the present III Sortable Spreadsheet without downloading. A new tutorial would be needed to demonstrate this functionality to novice spreadsheet users.

    The portfolio and watchlist tabs would require a download and Google account as is the present case.

    I am no expert but have been using spreadsheets since before Windows. Most people are not aware there were computers and spreadsheets before Windows but Lotus 123 worked in a DOS OS environment.

    Tim, if you are interested I can be reached via PM. I am willing to share my spreadsheet updates and additions. Regards, Bob.

    1. Glad to see you offer to continue to update the spreadsheet. It was a great starting point, but as you noted it had some deficiencies and gaps. But the price was right. My hunch is Tim has more things to do than hours in a day and maintaining the spreadsheet has fallen to the wayside. Hoping to see it continue to be maintained in some form, even if that means from you or some other collective of people.

  8. The gist of this site is income. I’ll infer most participants use income to purchase goods and services in contrast to building wealth. An often repeated axiom is, “it’s not what you make but what you keep”, an extrapolation of this thought might be, wealth should not be measured in numbers but rather “Value” . Value being what goods and services can be obtained with said wealth.

    The vast majority of readers could not consider living outside the U.S. but for the few adventurous souls I’ll make the case for the vastly superior “Value” of income by living in a foreign locale. I am retired with a U.S. pension and have lived for over a decade in a rural area of Thailand. There is no need for me to document costs in the U.S. as they vary by individual preferences and location, rather I’ll present my costs for what I consider common expenses irrespective of location.

    Property tax – less than a dollar a year
    Electric charges – never over $100 and usually less than $75 a month
    Water charges – two to three dollars a month
    Bottled potable water – 5 gal delivered to patio, 35 cents
    Thai mobile number – .70 cents a year (calls billed separately)
    U.S. phone number that terminates in Thailand – one dollar a month (can make and receive calls to/from U.S., 1-800 calls free, other calls less than 1 cent a minute. Incoming calls are free.)
    Internet – less than $20 a month. Fiber direct to modem, router with four GB ports and wifi 6. No rental fee for modem/router. 1 GB download speed.
    TV – satellite, no monthly fee. Requires purchase of a set-top box. (about $100 one time purchase and installation fee). TV as part of the internet package, For 3 years we have paid nothing due to continued promotions so can not say what non-promotion cost is.

    For the 95% of people that read this far, it is irrelevant, 5% may see potential and spark some interest and further research. For the less than 1% willing to try an adventure I applaud your spirit.

    This post is intended to provide an alternative and possibly fresh approach to the meaning of wealth. As such it is just food for thought for the few rare individuals who would contemplate such an adventure. Please don’t ask for additional information as I value my confidentiality. Regards from the other side of the world.

    1. Thank you for sharing and the interesting read Bob. Knowing little of Thailand, hoping your life is full and fulfilling.

    2. Bob
      Thanks the data but could you comment on the climate in the area of Thaialnd that you live in i.e. are you near ChingMei or another area?

      Also how are the medical services. Understand that they are good in Bangkok but outside have no idea. Much appreciate your inputs. SC

    3. Bob; May I ask how long have you lived in Thailand?? 2. How have you found the quality of health care including Doctors,, etc.?? 3. How would you classify the quality of food compared to the USA?? 4. What made you decide to move and live in Thailand?? 6. How have you found the government?? Lots of questions for you. Hope to hear from you. PS I have always thought of Thailand as a 3rd world country. Maybe you can prove me wrong. Also if you are young the Doctor/Hospital question may not be a big deal to you but when you get older believe me it becomes a very big deal.

    4. To help a friend I spent some time in Subic Bay in the Philippines about seven years ago. I had heard of the trend of single male retirees moving to Subic Bay to find and marry a younger,much younger, woman. I ate at a couple of restaurants and discovered a fair number of such stereotypical couples. Imagine watching that while the orchestra plays Carpenters hits (We’ve Only Just Begun).

      Bob, is Thailand a destination for single male retirees?

      1. Clearly I am not Bob, but I lived in both the Philippines and Thailand (and Singapore, and …) back when I was ex-patting around Asia.

        I saw a lot more of the type of couples you mention in the Philippines.

        English language skills tend to be much common in the Philippines. You can find people who speak English in Thailand (especially among the educated and upper class), but in my experience, it is less common in general.

        FWIW, I picked up a little Thai (now gone) and I didn’t think it was as hard to learn as Mandarin or Cantonese. I only picked up a few words of Filipino, but I didn’t need it much.

        1. I have worked in the Philippines as well and agree with your observation that English skills are more prevalent in the Philippines. English abilities are improving in Thailand as it is a required course in the present Thai educational system beginning in the elementary school grades.

      2. I believe it would be fair to say Thailand can be a suitable place for single male men to retire and find a partner. It is not uncommon for a Thai spouse to be younger than her husband.

  9. Can anyone confirm the ET preferred (ET-C, ET-D & ET-E) have only ‘guaranteed payments’ and NO/NO UBI on their K-1’s. Thanks.

    1. I’ve had ET-C for years, no UBTI and payments are guaranteed, line 4b & 4c are the same amount.

  10. Anybody out there own Nustar Series B 7.625% preferred that started floating 6/15/2022? I was looking at the dividend history and think the 9/15/22 payment was not right in my Vanguard account. It began floating 6/15/22. Ex-Dividend day was August 31, which I believe the date is when the dividend is also determined by the formula 5.643% + 3 month Libor. 3ML on 9/1/22 was 3.1%, which means the floating rate was 8.743% for the 9/15/22 payment. Instead of getting $.546 per share I got .477, which is the non floating rate. Is my calculation of the floating rate correct and should I have gotten the floating payment I calculated?

    1. Dj, You will have to do the backtracking on calendar day and what Libor was that date, but your date used is incorrect. It is right around 6/15 give or take where it falls with weekend and such. Its not 8/31, it is set at the beginning time period of the 3 month payment cycle. Note below “the FIRST DAY of such DISTRIBUTION PERIOD.
      Per prospectus…
      the rate (expressed as a percentage per year) for deposits in U.S. dollars for a three-month period commencing on the first day of such distribution period that appears on Reuters Page LIBOR01 as of 11:00 a.m., London time, on such Determination Date;

      1. Thanks Gridbird. I will read the prospectus carefully and try again. I assumed things without reading it and you know what happens when you assume things!

        1. Dj, it happens. And to be honest at least you are attempting to verify. I rarely pay attention to any of it unless its just a goofy one I need to watch. I should monitor that stuff more but I dont. I have to many CDs and bonds that pay out at various times I dont even have a clue when they are.

      2. Gridbird, After reading the prospectus and your reply I know got it. Since June 15th 2022 was on Wednesday the 3 month Libor rate at 11:00 AM London time was used to determine the distribution rate for the 9/15/22 dividend I was questioning. From a historical data chart I see the 3 month Libor on that date was 2.02957, which I suspect was at the end of the day,not 11:00 AM. It is close enough for my purpose as it gives the distribution rate 5.643 + 2.029 = 7.672. Doing the rest of the math to determine the actual dividend yields a dividend payment of .479 per share, which when applied to the shares I own is within a very few cents of what was put on my settlement account. This is the first of the floaters I own and have several more floating now or the next quarter or so. There is going to be a nice increase in my monthly take that can pay for more golf and other vices as these things float upwards. Now I know to read that prospectus very carefully and do the month properly! Thanks again for helping out my ignorant butt!

  11. There has recently been discussion on investing in pre-production movies, which turned out to be black holes for your money. I have rights of first refusal on a Midwest, commodity (corn & soybean) farm. Going to pass on it, the median cap rate is less than what you get on any US Treasury, from 0 to 10 years. You are depending on a “greater fool theory” investor to make it up in capital gains X years in the future.

    Recent farm sales: ~ $10k to $20k/acre

    Recent income history, including $25/acre NET forecast in 2023

    Maybe not as deep a black hole as movies, but a lot more work than buying UST’s for a lot lower projected return.

      1. David, I think the AcreTrader folks are reputable. All of their projected returns that I have seen count on a significant capital gain, then a cash out X years into the future. A lot of times they base their capital gain projection on historical averages. To me it is like a stock starting with a 50 P/E and then projecting it to increase to a 100 P/E in X years. Not impossible, but the trees have to grow to the clouds for that to happen. If I thought the farm I was offered would have a 10% annual cap gain for 10 years, I would have written the check

        A lot of younger folks might not recall what happened to farms in the high inflation/high interest rate 1975-1985 era. Many of them that had taken out loans to buy the farms literally went bankrupt. They could not make enough cash return to service the debt. Family farms that had been owned for decades or longer did fine. At least in the AcreTrader case, I think there is no debt used. So you will not get foreclosed on, you just might have a lower return that you expected.

        1. Tex, one of my best friends father bought a additional farmland to pair with his smaller inherited land in the late 70s. He about went under and probably was under water the better part of 20 years, but made it. Now of course its all paid off and worth a princely amount. Yet he still lives in an old worn $75,000 farm house living like he is in poverty lol. Frugal as they come!

        2. Tex, You’re right, the 80’s were a disaster. About the only way to financially justify buying land at current cap rates is a situation where the buyer is an active farmer adding a small plot to a much larger, fully paid for, operation.

          My nephew is the family farmer and I counsel him to keep his powder dry because the current operating profit margins are going to put some people out of business. There is a lot of land owned by non-farmers and heirs. Once any land price starts going down, these people are going to look to cash out.

          But one nice thing about the farm, vs the movie, is that at least the farm gives you a place to go if everything else goes to hell in a hand basket.

  12. Hi all – I just had a chance to run the end-of-month “deltas” on the daily PFF .csv file provided by BlackRock for the iShares Preferred and Income Securities ETF. My notes follow.
    Added to PFF:
    Jackson Financial Inc Dep Shares Reset Rate Series A Preferred Stock
    Ticker Symbol: JXN-A CUSIP: 46817M206 Exchange: NYSE
    Security Type: Traditional Preferred Stock
    QOL Link:
    Also added to PFF:
    Associated Banc-Corp Reset Rate Subordinated Notes due 03/01/2033
    Ticker Symbol: ASBA CUSIP: 045487600 Exchange: NYSE
    Security Type: Exchange-Traded Debt Security
    QOL link:
    Removed from PFF (called, as noted by several people here):
    STAR-D iStar, Inc., 8.00% Series D Cumulative Redeemable Preferred Stock
    STAR-I iStar, Inc., 7.50% Series I Cumulative Redeemable Preferred Stock
    The April, 2023 constituents for the ICE index PHGY that PFF follows will be posted later today – I’ll try to remember to post it this afternoon or evening for weighting changes and your general amusement.

  13. Does anyone have any thoughts on whether CNFRL will be redeemed, default, or ???
    I found the CEO’s recent comments to be a bit opaque.

    1. Conifer likely doesn’t even know, because they need to issue new debt to redeem it, and if the credit markets freeze up and lending stops to weaker borrowers, they default without a doubt.
      they don’t have the cash to pay it off.

  14. BAC press release 3/31:
    Page 1:
    The USD LIBOR Securities listed in Annex 1 to this press release, contain fallback provisions that provide for (i) a poll or inquiries for quotes or information related to USD LIBOR or (ii) benchmark replacements based on USD LIBOR values (such as the most recently available USD LIBOR rate or USD LIBOR rate as determined by the calculation agent using discretion). Under the LIBOR Act and LIBOR Rule, on the LIBOR Replacement Date, by operation of law (i) these fallback provisions will be disregarded and deemed null and void and without any force or effect, and (ii) USD LIBOR will be replaced as the benchmark rate by CME Term SOFR for the tenor that corresponds to the applicable USD LIBOR tenor, plus the applicable tenor spread adjustment.

    Annex 1 includes, for example, CUSIP 060505633, which is BML-G.

    The last fallback for 3ML in the BML-G prospectus states that:
    If fewer than three New York City banks selected by us are quoting rates, LIBOR for the applicable period will be the same as for the immediately preceding Dividend Period.

    Arguably this could have been interpreted to be a hardwired fallback to 3ML, such that the 3ML for the dividend period ending 8/28/2023 (that is, the last quoted 3ML for BML-G) would, in effect, become the permanent 3ML going forward. But BAC will be replacing 3ML with the 3 month term SOFR + 26 basis points. So BML-G will continue to float with, but with the SOFR replacement.
    It will be interesting to see if this becomes the standard.

    1. Finally, an issuer shares their LIBOR replacement plans. NHC, Thanks for posting. This is more or less what I expected as the 3 Mo Term SOFR plus the term spread ( 26 bp) is within a basis point or 2 of current 3 Mo LIBOR. As more issuers make their plans known it will reduce uncertainty and prices should increase modestly. I’m still increasing floater exposure as I don’t see short term rates decreasing soon.

    2. Yes, I would bet big it will very much become the standard

      Several other banks already announced this previously. I doubt anyone doesn’t adopt the safe harbor congress has provided them of SOFR + the tenor adjustment

      It’s why I viewed all the hand wringing here about it just noise

  15. If I hold the same MLP in a normal brokerage account AND an IRA (same SSN but different brokerage house) will I get two K-1’s or one. Appreciate any past experiences. P.S. I am familiar with UBI and that is not an issue here.

  16. I know some people consider it a badge of honor if their post gets deleted off SA . Its sad in a way as the comment may be valuable to some readers as a opposing viewpoint to the author. But has anyone gotten an outright ban or suspension on the site?

    1. Ya, Charles. I cant reach you or Alpha because I got 10 days in the hole, lol. Sitting in the dungeon with no lights and ankles chained to the wall. They didnt tell me why, and said they wouldnt even though I never bothered to care or would ask. But Im sure it was because they shamelessly promoted an “infomercial” on how prescient one of their authors correctly predicted the SVB blow up months ago. Implying he is some guru and thus pay to join his site. All while ignoring the fact a few weeks later he recommended Signature Bank at $20 that went to zero. Well I reminded them, ha. I dont think they like me calling their SA profit generating king “Mr. WPG Bond Guy” either, lol.
      I’ll see ya in a week or so, but I will need to wear sunglasses after being isolated in the total darkness for so long. Probably need to reach out to Aaron Rogers and see how he dealt with coming out of the absolute darkness.

      1. 🙂 LOL
        Well at least with you on here I will not miss the razor sharp wit.
        Hopefully my discussion with PST today doesn’t get my posts deleted.
        I like that there are several people on here who I can follow over on SA

        1. I just read them. No way, nothing wrong there. And I know him, even if you were insulting which you werent he wouldnt report it. BTW, Im on that one too. I bought that around time they did, not knowing. The common just keeps climbing at 52 week highs and doubled off the August lows. That is a positive for the preferred. Unless it is some buyout candidate and that wouldnt possibly be good for the preferred. In fact the preferred is lower now than what it was when the common was a 52 weeks lows last summer…Most odd.
          Just seems like a decent risk/reward throwing in the credit upgrade. We shall see, nothing is certain until the selling bell is rung though.

          1. Well I been looking at the preferred and debating on if to do an offer, but I have a bid in for a similar preferred closer to par but that preferred doesn’t have any upside to it. Decisions , decisions and limited funds.

            1. Im about to shut the party down in the financial/bank sector myself. I will keep this and one or two more, but that is it. I never traditionally like this sector to begin with, so that is the main influence. Im not going to be caught here at closing time trying to hit on one of the ugly ones. I got my bounty and am heading out the back door.

              1. There is a lot of risk out there right now Grid, not just financials. But good point. Been looking at REIT’s mainly the industrial and grocery anchored ones. Problem is everyone else is too. Not sure if we are in the middle innings or still in the second. I think it’s a good year out before we know. The problem with so many of them is they built their house of cards on balloon payments and variable rate loans that are coming due in the next 1 to 3 years so the pain is going to be long and drawn out. To complicate things is keeping or losing tennents, trying to extend or roll over debt high interest rates and now risk aversion by the lenders not to mention maybe some overbuilding always happens in real estate.
                The best ones will be the ones with fixed rate debt, good markets and strong renters

        1. Green, hmmm….Me thinks you have dug out the old number “4” jersey buried in the basement and knocked the dust off it to wear again, ha.

      2. You got penalty box status? Meaning you’ve got an official day when you’re released? You must be considered too valuable to be banned completely. What they’ve done to me is make everything I write subject to review for special dispensation from the SA pope before what I write can make it to the Comments. That’s been going on for at least a year now. I’ve never bothered to ask if that limitation will ever be lifted…. Then of course, The Revenue Generator King has banned me completely for having had the audacity to have an opposing view or two to his crew’s recommendations, all the while claiming it’s SA editors doing it not him… Yeah, right…. I could write I’ve consistently made zillions off their recommendations without ever experiencing a pendy of loss and that I feel so honored to be able to sit before their glorious feet and partake of their all knowing tree of knowledge and they’d still not post it..

        1. I cant believe they did that to you as you are polite as they come. See I was like that too earlier, when I just matter of factly responded to there “accidental misstatements” with facts and links. That got me put on moderation right after his lie he never had a 2018 recommendation of the year. He did it was SKT. I provided the link too. It was a horrible reco that is why he wanted to deny. As they rely on lazy people who trust. Anyways I never said anything either. Just devoted my do nothing time to try to sneak coded insults through moderation and then some of us would get a good laugh.
          See they obfuscate. Notice they said SA moderators did it. But did you notice they never said none of them requested you to be moderated though? Its all about how things are worded. My best one was on penniless. Said he was the best and was clearly the Rich Kotite of the investing world. They finally figured out Rich Kotite is viewed as one of the top 10 all time worst NFL head coaches ever to roam the sidelines.

          1. Ha……….. I seemed to have found many a time in the past to require use of that word “obfuscate” in responses to The Almighty Dragon……..

      3. Grid, Wear it like a badge of honor. As a student of the few crumbs left behind by Jim Simons, I was curious a few months ago about the tall claims of the SA “guru”, so I dug in.

        1st observation: the author has a horrendous prior track record.

        2nd observation: the SA “model” and “track-record” appear to have been reverse-engineered based on prior outcomes. hahahaha. What a joke.

        They are bromidic, imperious and palaverous!

    2. When I was on SA, I often had my posts deleted and I received a few suspensions.

      Why? I’ve utilized options for nearly 40 years and have a pretty decent handle on them for a retail guy. I had the temerity to correct author misstatements and errant calculations. Two in particular were Dumbdragon and ” David “Something” (can’t remember his last name despite his being a prolific author).

      They were dead wrong and providing correct accurate numerical analysis was taboo if it contradicted them – hindering their ability to acquire new $ubscription$. It was pointless to attempt to assist other participants in the face of such censure.

  17. Happy Saturday! I recently read Schwab’s March 2023 bond market update and wanted to pass it along:

    There were mention of preferreds in general:

    “Those willing to take additional risks should consider preferred securities, but investment-grade corporates appear more attractive for more risk averse investors. Preferreds have performed well once the Fed hits its “peak” rate but investors can still consider preferreds now rather than trying to time the market, which we never suggest.”

    I’d also suggest checking out the chart titled “Preferred security returns have generally been positive after the Fed hits its peak rate”

    1. Any thoughts on the risk that APO might orphan their sub preferred issues? I own some of their AHL preferred issues and it’s always a nagging issue for me.

    2. Any information on the substantial increase in Argo preferred d today on heavy volume? Now at $24 and change up from $22.50 recently on this seven percent issue. Argo has buy out offer on the table. Any thoughts on selling now vs likelihood of share price headed to $25.

      1. Alot of preferreds were subject to large swings in the last few minutes today, on big volume, this is typical of trading on last day of the quarter, usually due to fund rebalancing at the end of the quarter. Many were up big and some down big also. This usually reverses to some extent the following day.

  18. As further proof that our public schools aren’t teaching math adequately, I sold my DUK-A for around $25.60 today. The yield to first call is around 3.7% at that price. DUK-A has been one of my largest positions for much of the last year. Make sure to do your YTC calcs folks!

    I also sold my NEE-N.

  19. ALL-B ex-divd of $0.4997 today but still trading $25.2x-$25.3x!

    Hasn’t it been called April 15, 2023? If not, wonder why not. Surely ALL can borrow cheaper than the 8%-ish they are paying LIBOR+3.165%

    1. ALL is definitely borrowing less than the 8% mark, they are floating new issue at 5.25%.

      I thought maybe this would be to redeem ALL-B but according to prospectus the Use of Proceeds states it’s for paying off debt coming due in June.

      We expect to receive net proceeds, after deducting the underwriting discount and other offering expenses payable by us, of approximately $ .
      We intend to use the net proceeds from this offering of Senior Notes for general corporate purposes, including to repay our $500 million principal amount of 3.15% Senior Notes due 2023 at their maturity on June 15, 2023.
      Certain of the underwriters or their respective affiliates may be holders of our 3.15% Senior Notes due 2023, which we intend to repay at maturity with a portion of the net proceeds of this offering. Accordingly, such underwriters or their respective affiliates may receive more than 5% of the net proceeds of this offering, not including underwriting compensation, thus creating a “conflict of interest” within the meaning of FINRA Rule 5121. Accordingly, this offering is being made in compliance with the requirements of FINRA Rule 5121. See “Underwriting (Conflicts of Interest)—Conflicts of Interest.”

  20. All-B went ex-d today and Fidelity is showing a dividend of only $.3187. I thought it was yielding 8% and the divvy should be $.50. Anyone have an insight to this?

      1. Grid, want to thank you for pointing out that ALL-B was selling for more than the dividend. I sold all mine at 25.70 and bought them back today at 25.25 wasn’t the low on the day but I’ll take it.

  21. Does anyone know what is happening with AFSIC as 160,000 shares changed hands today as opposed to the usual 1000? Trading in AFSIB was uneventful, but I don’t know about the other preferreds. Thanks.

  22. Building a little CD ladder. Fidelity is offering me cusip DSN3R4427, description “TIAA FSB 5.100000 09/29/2023 03/31/2023” for the 6-month rung.

    Anyone have any info on “TIAA FSB”? I assume this is the private bank TIAA CREF runs? But can’t find any financials…

    1. Yes, it is the banking arm of TIAA.

      “TIAA Bank®, a division of TIAA, FSB. Member FDIC,” (from their website).

      My mother-in-law has retirement accounts with TIAA. Easy to deal with.

      1. TIAA Bank is being sold to a yet still unnamed entity, so what has been is going to change…. This was announce months ago all with the comment to account owners that we’ll let you know the name when the time comes…. Go figure… They claim nothing will change from a mechanics point of view, meaning account numbers will not change, but it seems so odd they have been unwilling to name who it is they’ve sold the bank to……….. Here’s the announcement they made in NOVEMBER:

        “I’m pleased to share with you news about important changes coming to TIAA Bank.

        TIAA — the parent company of TIAA Bank — has announced plans to sell the bank to new investors. As TIAA refocuses on its core retirement and asset management businesses, the company determined now is the appropriate time to begin a new chapter for TIAA Bank as a separate, stand-alone bank under new ownership and a new brand.

        The company is making this change from a position of financial strength, and the bank’s new owners have extensive experience in financial services. Demonstrating an ongoing commitment to our bank and its future success, TIAA will retain a non-controlling ownership stake in the bank after the transaction closes in 2023.
        What to expect
        During this transition, there are no changes to your accounts and the many ways we serve you.

        There will be no changes to your account numbers or lending agreements, and you can continue to use your checks, debit cards, ATMs and our financial centers as you always have. If you have a CD product with us, there will be no changes to your account’s maturity schedule. And, of course, there are no changes to FDIC coverage of your accounts.

        If you have a broader relationship with TIAA—including your retirement plan—this change will have no impact on your other TIAA solutions.

        You can expect to hear from us well in advance of any future changes and, as always, our client service teams are always standing by to help you by phone, online and in person.

        TIAA Bank has a long tradition of outstanding client service, innovation and support for the communities where we live and work, and we’re excited that our bank will continue to carry on this legacy under new ownership. We’ll keep delivering industry-leading products and services, including our high-value deposit products.

        Additionally, we’re pleased that under the new owners, TIAA Bank will continue to have ongoing business relationships with TIAA. We look forward to continuing to partner with TIAA to offer retirement clients high-value banking solutions.

        We’re also pleased our bank will continue to be based in Jacksonville, FL, providing products and services to clients nationwide.

        If you have any questions about your TIAA Bank account, please contact us at 1-888-882-3837. And if you’re a TIAA client, please reach out to your advisor if you have questions about your accounts or contact TIAA directly at 1-800-842-2252.

        We thank you for being a TIAA Bank client, and we look forward to continuing to serve you in the future.


        Steve Fischer
        President and CEO
        TIAA Bank

        1. 2whiteroses…..When cashing in a maturing cd at TIAA bank (Jacksonville ,FL), I was told they were selling back to the same group that sold the bank to TIAA. It used to be called Everbank

          1. That’d be interesting, lucky… I had not heard that…. I’ve been with this bank ever since the Everbank days…. I’ve always felt sorry for the people on the other end of the phone who had to say they’re from “TIAA.” That’s hard to say…lol.. They could have at least been able to say “TIdoubleA.”……. Still, I wonder who that could actually mean? Here’s their past history according to Wiki –

            1. 2WR….The cd that matured was one of the last Everbank “yield pledge” cd’s. TIAA honored the “yield pledge” but did not offer it for new cd’s. Had one from 2020 ( roll over) that was so low I payed the penalty and took it out early for buying some high grade corporates late last fall. The Everbank cd story is similar to others I have experienced with local cd’s. A bank offers a cd at above local market rates, and, at times, above brokered cd rates. Next thing you know, your cd’s bank has a new name.

          2. Hmmmmmmmm, given my great calls on what was to happen on NEWTL and NEWTZ (ha!), maybe it’s time for me to move all my remaining pennies out of TIAA and into the new Newtek Bank… They’re currently offering a 5% savings account and a 5.25% 6 month CD, all FDIC insured of course…. TIAA Bank, once it became TIAA Bank, has not been competitive with their basic rates compared to others anyway, so I only continue to use it for checking…

        2. Wow. I stand corrected. I had no idea about TIAA buying then selling the bank.

          My SiL handles the day-to-day on my MiL’s accounts. I just get involved to adjust withholding, etc. – which I do on the phone with my 97 year old MiL on the line. They reps are always very kind to her and get things done nicely. Maybe its because they don’t want to upset her.

          So the trick to a good TIAA relationship is apparently to be very old, very hard of hearing, and to have English as your third language.

          1. I am not sure I have encountered anyone who has had issues with TIAA’s customer service. None of my employees had issues and they would have let me know

            I used to deal with them before I retired as one of my many duties as CFO was to be the plan administrator of our 403b plan. We used TIAA and they were great to deal with, both from an Administration standpoint as well as an employee customer service standpoint. One of the real perks was they provide free financial planning advice to anyone who has an account. We used to schedule reps to come out and meet with any employees who wanted to do so annually. A great service

            Shoot, I am fully self sufficient when it comes to managing my investments but before I decided to retire, I went and met with my TIAA planner and had them run scenarios and Monte Carlo simulations, look over my plans and confirm my thinking that I had enough money stashed away to retire and not have to worry and that my diversification plan made sense. And I followed up with them a few times annually after that. All completely free – and they were totally professional, knowledgeable and never tried to sell me anything.

            Now as far as their bank goes, I never did understand why they bought it to begin with. I guess they wanted to diversify but it never fit their core business and I never saw why their customer base would want to open accounts there (remember the employees never chose TIAA as their retirement plan, their employers did that). I did open a TIAA bank account at one point, just to get an account opening bonus of $500 and the rate they were paying was completive at the time. But I never was impressed with their online banking tech and eventually closed that account.So makes sense to hear they are selling it

            1. Well, my experience with TIAA customer service has been the opposite. I’ve had infinite hold times, rude reps, wrong information, and every kind of general screwup. When we wanted to annuitize an annuity, the regular agents were helpless and I had to contact the secret Customer Resolution Team to make anything happen.

              Also, everything about their website sucks. When said annuitization started, the annuity completely disappeared from the account. The only way to find anything out (e.g. present value) is to call in (see infinite hold times).

              1. Not sure where you are located David, but check if TIAA has a local office in your area. If so, get a personal advisor assigned and deal directly with their team

                1. Interesting idea. There are no offices in my state, but there is one close to my mother. Maybe I could get someone there assigned. I wonder if they actually return phone calls.

                  Funny how none of the many telephone agents, Customer Resolution Team people, trustees, etc. I’ve talked to ever mentioned that possibility!

                  1. David – I would reach out to them. Unless something has changed recently, they provide this service at no charge to anyone with assets in TIAA.

                    My wife has a very small old TIAA account with maybe $30K in it. She is eligible for the same services as I am (and my account is much larger). I have told her (since I manage all our investments) that if anything ever happens to me she should use the TIAA advisor for guidance

                    I can’t say this is the same for every office but my guess is it is – that each advisor has a team of support personal. So besides the advisor, other support personal to help handle requests

                    In fact, I just received an email today from my advisor (even though I haven’t met with him for over 3 years now I get these periodically) letting me know he would be out of the office for x amount of time for paternity leave and giving me the contact info of the person who will be covering for him in case I need to reach them during his absence

                    Good luck

          2. @Private
            I am pretty old
            English is my third language
            Hearing is still ok – but two out of three ain’t bad
            Can I help you? 🙂

  23. Just bought to take a shot:
    Fifth Third Bank 😱 4.3% due 1/16/24 CUSIP 316773CP3 a $750MM issue rated Baa1/BBB @ $97.349 to yield 7.805% callable 12/16/23 @ $100 with 30:day’s notice. I know nothing more then you, I see this incredibly attractive short term yield and am just taking a shot 🎲 PLEASEEEEE do your own deep due diligence as I am not recommending anything to anyone…

    1. I got some of the 16% YTM CMA bond due 7/31/2023. Hopefully they can make it four more months! Rated A3/BBB+ for whatever that’s worth.

      1. Landlord a few points:
        1) I think we can ignore the ratings on banks smaller than the TBTF. Recall that Silicon Valley was A2 a few days before going belly up. Tells us that the rating agencies, just like the Fed, did not adequately consider the duration mismatch/bank run possibilities. Lord knows what an accurate rating would be for CMA or any other non-TBTF bank.
        2) CMA really stands out for all banks with bonds maturing in 2023 that have been recently offered. With an ask yield of ~ 14.0%, it is in the range of Credit Suisse/ Deutsche Bank and other’s in the news. Investors are clearly pricing in a significant default risk.
        3) I am seeing a buyers strike on many corporate bonds, not just on banks. The bid side of the ledger is thin to non-existent in many cases. Where there is a bid, it is way below what you would consider a reasonable price. If you buy any of them, a pretty good chance you could have bought it for less in a few days. We bought a nameless corporate today, maturing in <45 days with a ~21% YTM. Not a rational price IMO.
        4) For the record, we own some of the CMA’s in one account, so we have voted with the no-default party for this round.

        1. I think the ratings are relevant if you exclude the risk of a bank run. Obviously that’s a big risk to exclude but if the bank run issue blows over, then ratings will matter again.

          That said, even excluding bank run risk, I’d still take ratings down a couple notches because this whole saga has woken depositors up to the fact they should be earning more than 0% on their cash. So banks will need to increase rates to compete with money market funds and that will compress margins and earnings. But it’s not really an existential threat either as the yield curve isn’t going to stay inverted forever, so a couple notch downgrade feels right. I also expect they’ll take some steps to shore up liquidity like slowing down lending to retain more cash.

          Let’s see what Moody’s comes up with in their ratings review for CMA.

          Stock price isn’t communicating a big risk of a near term default. Stock analysts would have a sense for whether there’s a bank run happening at CMA and if it hasn’t happened yet, it’s unlikely to happen.

          Overall, I think this whole bank liquidity crisis will blow over because it’s self-correcting. The worse it gets, the lower rates will go which corrects the issue that’s at the root of the crisis.

          1. Landlord, I agree the ratings are irrelevant if you exclude the possibility of a bank run. At the Senate hearing this week, Fed Governor Barr added a new piece to the Silicon Valley Bank Story. Here is their deposit history

            Wednesday, March 8th, ~$175 billion at close of business

            Thursday, March 9th, $42 billion withdrawn before close of business leaving $133

            Friday, March 10th, $100 billion MORE was requested to be withdrawn, which would have left them with $33 billion. This is when the regulators decided they had no choice before the open to shut SIVB down.

            That would have been ~ 80% of their total deposits. No bank including the TBTF could fund that level of cash that quickly. All it took was for the run to start and then it became an unstoppable avalanche. I don’t have a model that would have forecasted an 80% run in less than 24 hours. And I have not heard anything from Janet/Fed/FDIC that convinces me it could not happen again.

            Frankly, I think it is a perfect setup for a nefarious short seller to trigger a run. My friend Cohodes and a few other shorts were accused of knocking off Silvergate, rightly or wrongly.

            Since we hold CMA bonds in one account, we are in the same boat with you, but understand there is a greater than normal risk of default, even before July 31st. Despite there being plenty available @ the 14%- 16% YTM, we will not be adding them to widows/orphans accounts. An interesting bimodal kind of bet. . .

            And for the record, I thought they would NOT let SIVB fail. It will have a major negative impact on high tech startups in the US. Roughly 50% of all them had a relationship with SIVB. Other than the little duration mismatch and bank run, the SIVB team was incredibly knowledgeable about all things high tech startup related. Certainly in the top five most important organizations in Silicon Valley, maybe the top ONE.

        2. Wasn’t the point of the Anti-trust ‘considerations’ and everything that has transpired since the Civil War indicative of ‘bust the trust’ whe+n there is indication of No Trust Left?
          Too Big to Fail… in America? Well I suppose it depends on who’s beggaring their neighbor with emergency policy.
          Powell is trying to create a cleansing of some overdue catharsis.

      2. Really ugly spread on the CMA bond at Schwab (98 ask). Where are people buying this, and what’s today’s ask?

    2. Same thoughts, picked up a bit Tuesday. I don’t search beyond Fido, but it’s always interesting to see what’s out there. Lately, far fewer and lower yielding CDs.

    3. Azure, thanks for the heads up on the Fifth Third issue. I picked up a small amt through TDA at 97.75 with a YTM of 7.284%. I imagine you bought more to get the lower price but in looking at the Moody’s report I was satisfied with what I negotiated. I always negotiate with TDA. Sometimes I win and sometimes I don’t. But everybody should investigate themselves. I’ve been known to be wrong.

    4. I was about to buy the FITB 4/3% bond but when putting my order in at Fido then I noticed there was additional premium for the accrued interest, so it was a “clean” price. The “dirty” price with accrued is how these bonds trade and that lowered the YTM by over 100 BP per my calcs so I reconsidered. I like the clean prices on prefs – makes the calculations easier.

      1. Bonds trade with accrued interest changing hands. Preferred stocks do not. Makes it easier to calculate YTM you don’t have to make adjustment for accrued interest. There’s a slight loss in the time delay for recapturing the dividend but it’s negligible.

        1. Martin, just so we are being accurate, the vast majority of bonds trade with interest accrued. There are bonds that trade “flat” meaning that they have EX dates just like preferreds. An example would be Phoenix Cos., Inc., 7.45% Quarterly Interest Bonds QUIBS due 1/15/2032 CUSIP: 71902E208 Flat bonds means accrued interest will be reflected in the trading price and the purchasers will not pay and the sellers will not receive any accrued and unpaid interest. Be well, Azure

          1. to add on to this, there are “bonds” that trade with accrued interest when they don’t actually pay interest, but have a record date like a stock, so if you understand the math based on the calendar and when the record date is, you can sell it for more than you should, or buy it for less from a counterparty who puts out bids not realizing this.

  24. Anyone holding BHFAO might want to look at trading it for BHFAN today for a modest yield bump.

    1. Thanks. I had a little o and n. Thus took your advice and swapped to more n. Had to be patient on that sell tho to maximize it.

  25. Whoops! My mistake.

    TANNZ trading $25.42
    Above par
    Perhaps worth the gamble of high interest rate until redemption

    1. Stripped it is under par-goes ex on Thursday. Tanni dropped a bit today so I picked up a few nickels. If they call great, if not, it has a decent maturity date.

      1. I have been punching, buying and flipping bank regionals, and then falling back quickly into a rope a dope with issues like the TA BB and ALL-B. Bought more of Z and ALL-B today again. Though Z has basically been a crawl up in price all quarter, ALL-B has given glorious opportunities to juice the call anchored returns. It jumped late in day and all the accrued value has now been bid out of it again.

        1. Gridbird,
          I have been doing the same on ALL-B.
          Yesterday, my fat finger bought 500 shares at 25.62 instead of selling 😣.
          But 5 minutes later I sold all at higher prices. 😃
          With all the hubbub surrounding anything financial, I decided to sell all.🤑
          I am happy to be up for the year. My mix is 70% CD/MMKT and 30% in 15 Preferred issues. NYCBPU, WAFDP,WFC-L,VLYPO and the usual suspects follow like SLMNP, NI-B,WRB-E,SR-A,EP-C, FHN-E,CUBI-F,LNC-D, MS-P,DCOMP,WFC-Q,WFC-R plus 50 shares of my worst performer Qrtep and 200 shares of KTBA bring up the rear

        2. I am on the road today and can’t find the discussion on ALL-B divi.

          Can someone remind me what the ALL-B divi is going to be this quarter?

          1. Both Schwab and TDAm show Amt: 0.3187 XD 3/30 Pay 4/15
            But this seems wrong. Sorry – I will check more and get back to you

            1. Per Merrill Edge, the payment should be 0.499675 (1.9987/4)

              Perhaps 2WR or Gridbird can comment.
              Some posters here mentioned the 3M LIBOR (should be on Jan 12 best I can tell) but Search in III is not working for me.

                1. Private, how could I not? You have helped many with your posts (and in private, – aptly). Thank you for all your posts and helping out, along with all the others here that that are selfless – Gridbird, 2WR, AzureB, Tex the 2nd, Justin, mcg, Inspy, Tim McP …. too many to mention … and if we could only resuscitate Bob-in-DE !
                  Thanks to all and my apologies as I failed to mention others that I cannot recall right now.

              1. Yep, thats it Green. Just a tiny smidge under .50. Newman I busted that thing out yet again selling all out at 25.79-.80. A couple thousand shares banging out 25 cent or so flips multi times over in very recent past grind the ol annual returns higher with easy money trades.
                WAFDP has a been a nice little multi grind it out flipper past week too. Others were good for a couple quick bucks, but Im through with them. I pulled the rip cord on JXN-A at 24.05 today. That was almost a $3 flip. Its just been way too easy this year. Gotta keep the guard up!

                  1. Yes, it has Maine…Here is a little preferred trivia for ya. What insurer common stock has just hit a 52 week high while its preferred has recently languished and is yielding over 9%?

                    1. SPNT?!

                      I had to use Tim’s list of insurance companies and then sort by yield TK get the right clue.

                      Here is another pref that has sold off during this recent bank induced selloff, but the common is (kind of) holding up.

                      TFINP… it is as illiquid as it gets. Def up your alley.
                      It’s a bank but they do non-bank stuff.. the CEO was mentioned as highly respected in this article, same with your WAFDP CEO.


                    2. Maine, Winner winner chicken dinner! I found that very interesting as I hadnt followed SPNT for a while. The common has appeared to turn the corner up over 30% YTD and positive past 12 months. I dove in this morning on the preferred.
                      Thanks for the link…I actually have owned that preferred before. On its IPO roll out. May look at it again. WAFD just appears to be a solid outfit, and I really liked how the CEO presented himself and just being incredulous how SVB could have invested the way they did. Of course they have commercial exposure but Im sure they had that problem in 2008-09 too and continued to pay common stock divis being they have for over 160 consecutive quarters. Still not a time to be complacent. The penthouse and the outhouse are never too far away from each other in this sector.

              2. Merrill’s close enough for jazz… I think the coupon payment was supposed to be 7.994% which would be .49963 for the quarter, but there’s always rounding to be had somewhere along the way…….Could be LIBOR being figured at a different time of the day than what marketwatch used for 1/12 being the reason for the small difference….

  26. Question regarding BP proposal to purchase all of Travel Centers of America stock.
    I own TANNZ – the 8% Senior Notes.
    If BP does purchase all of TCA’s stock, doesn’t that Change of Control trigger repayment of the notes?
    Given board support and agreement of major stockholders, why isn’t TANNZ trading up to par?

    1. Westie, There is no change of control protection….From prospectus…
      The Indenture does not contain any provisions that would limit our ability to incur indebtedness or that would afford you protection in the event of (1) a highly leveraged or similar transaction involving us or any of our affiliates, (2) a change in control or (3) a reorganization, restructuring, merger or similar transaction involving us that may adversely affect you. In addition, we may, in the future, enter into transactions such as the sale of all or substantially all of our assets or a merger or consolidation that would increase the amount of our indebtedness or substantially reduce or eliminate our assets, which might have an adverse effect on our ability to service our indebtedness….
      ….I have scanned the merger proposal as best I can and I cant find a whiff of anything mentioned about the notes. Most odd since it is exchange registered. South Jersey specifically mentioned in their merger the baby bond SJIJ would be delisted. There is some vague mention of certain indebtedness being paid before merger but they have other debt and thus isn’t an indication that it will be redeemed. The presumption is it will being part BP has sterling CQ. But until disclosed, its still in relm of possibility BB’s could be delisted and untradeable for some period of time up to even maturity. I always assume the worst case scenario until facts prove otherwise. In this case if the worst happened I can live with it.

      1. I’ve not re-read this to confirm its relevance since my original reading but I had this in my notes – from Section 6.8, p 58:

        Treatment of Certain Indebtedness. Prior to the Closing, the Company shall, and shall cause its Subsidiaries to, (a) deliver notices of prepayment and notices of termination of commitments (including any certifications or calculations to be provided therewith), as applicable, with respect to the agreements related to indebtedness set forth in Section 6.8 of the Company Disclosure Letter and (b) at Parent’s request prior to Closing, shall use reasonable best efforts to deliver notices of prepayment and notices of termination of commitments (including any certifications or calculations to be provided therewith), as applicable, with respect to any other agreements related to indebtedness or notes of the Company or any of its Company (clauses (a) and (b), collectively, (the “Company Indebtedness”), in each case, within the time periods required thereby and as necessary to pay in full outstanding indebtedness under the Company Indebtedness by the Closing. The Company shall, and shall cause its Subsidiaries to, each use their reasonable best efforts to (i) obtain and deliver to Parent prior to the Closing payoff letters in customary form from the lenders (or their applicable representative) with respect to the Company Indebtedness stating the amounts required to pay in full all indebtedness thereunder at the Closing, (ii) obtain and deliver to Parent documents in customary form acknowledging the termination of obligations and release of Liens related to the Company Indebtedness that are in the form of notes from the collateral agent with respect thereto, (iii) arrange the payoff or prepayment in full, as applicable, of all such indebtedness as of the Effective Time, the termination of the Company Indebtedness and (iv) take, or cause to be taken, all actions, and do, or cause to be done, and to assist and cooperate with Parent and Merger Subsidiary in doing, all things necessary in connection with the Merger and the other transactions contemplated hereby with respect to the indebtedness under the Company Indebtedness, including providing timely notice to the appropriate parties of the Merger and the transactions contemplated hereby, and, as promptly as practicable, making all filings and notifications and entering into all necessary agreements as reasonably requested by Parent or Merger Subsidiary.

  27. Does anyone have a clue why CHSCP (8%), which is callable on 7/18/23, is trading above 29 per share?

    Yes I am aware of the possible extension of the call date as was done in the past but shouldn’t gravity start pulling it down for those who are more skeptical? Is it due to interest rates being higher and the coupon rate is actually what they would have to offer if they wanted to issue a new preferred to replace it? Have people analyzed their financials and know they cannot possibly redeem it?

    I find it such an odd outlier that I thought I would post to get other’s opinion on it. It truly makes zero sense unless there is blind faith it will not be called and the call date pushed out for many years. July is coming up quick and CHS has done well these last couple of years from what I have read here and would be wise to knock it out, right?

    I own the L and O preferred from CHS.

    1. FC,
      sometimes people just don’t pay attention, I guess.

      FWIW – It looks CHSO is also callable just a couple of months after the P and is trading well above redemption price – unless I am misreading the data.

    2. fc—I own a ton of the 7.5% L at $25.17. To me, that a much safer investment. I also own the 7.1% N at $25.10 and the 6.75% M at $25. I also don’t understand why the 8% P trades at such a premium. However, it’s only 3 million shares so it’s probably not a significant issue to the company. Maybe some wealthy farmers own most of it and they have influence. Who knows?

      1. Private, you are correct on O. I would imagine most of us stocked up when close to par. In my case I have 7 times more L then O.

        It would be humorous to see them call O and leave P outstanding.

      1. Justin it has had its call protection re-upped in 2013 for 10 additional years. This may be why the issue is so lethargic to call risk. But this was done for a reason that may not apply this time. Somebody several months ago here someone stated CHS said wouldn’t extend call protections again. But who knows about that. Makes no sense to own P now even if it isnt redeemed near term.

    3. You’re absolutely right – it makes no sense unless someone knows that they are going to extend the call date. Based on where L and O are trading, they should be able to refi P at much lower rate. I was short P for about a year ago, but couldn’t keep paying the neg rates on it. Threw in the towel.

  28. Vanguard VMRXX Cash Reserves Federal Money Market Fund Admiral Shares are yielding 4.70%!!! This Money Market is in short-term U.S. government securities. IMHO, these HUGE Money Market yields at quality brokerage firms has greatly hurt the US based banks. If you have any money you are just sitting on that has little yield, just why leave it in a US bank?

    1. I think most people have more confidence in FDIC insurance than SIPC insurance. Don’t know if that’s worth the ~ 1% spread or not.

      1. David, just so we can be clear; you are telling me that you have mistrust in a Vanguard 100% US Government Money Market fund and believe they could break the $1 per share price? I and many others have an incredible amount of dollars in these funds. Do you know something the rest of us do not? Money Market issues in 2008 had to do with massive outflows, unlike today when the Money market funds attracted more than $300+ billion in the past four weeks, the fastest pace of inflows since 2020 as investors sought safety from turmoil in the banking industry. Please enlighten us my friend…

        1. No, not at all. I’m saying that in the event of an apocalypse where Vanguard went out of business, I’m not sure what would be involved in getting access to my VMRXX balance, and how long it would take. This has nothing to do with the underlying assets.

          I have a lot more confidence in how FDIC insurance would work in the case of a bank that went under.

          Now this is not worth 1% to me, but I can understand how it would be for some people.

          1. So your issue is with SIPC insurance safety verses FDIC insurance for banks? Can you please provide ANY example where SIPC failed? IMHO, if your brokerage does shut down or become insolvent, other layers of protection will shield you from loss before the SIPC needs to step in. As FINRA points out: “In virtually all cases, when a brokerage firm ceases to operate, customer assets are safe and typically are transferred in an orderly fashion to another registered brokerage firm.”
            Those other layers of protection include regulatory requirements for brokerage firms to keep customer assets segregated in separate accounts from the firm’s own money and to have a minimum amount of liquid assets on hand, kind of like an emergency fund for a broker. Vanguard isn’t going anywhere and will outlive the amount of breaths all of us have on this planet 🌎

            1. Can you please provide any example where the sponsor of a money market fund went out of business, or a money market fund was shut down for any reason, and describe the procedure and timeline for investors to regain access to their funds? I would love to know what really happens in that situation.

              (BTW I see that Wealhfront Cash is paying 4.3%, with FDIC protection to $3M, so the bank to MMF spread is only 0.4%.)

              1. Why? I’m certain you will be able to do your own research as there is a plethora of information out there and you can find what you are searching for with just a bit of effort.

                1. Because I have not been able to find any solid information on what happens in this situation. If it’s so easy to search for it, how about throwing me a link or two?

                  1. Google “reserve funds.”

                    Google “money market crisis”

                    Google “money market reform”

                    Google “break the Buck”

                    Lots of big money markets have failed over the years, but most of the big name ones supported them, so shareholders didn’t suffer losses.

                    1. David & Maine, thank you for your reply. I will again ask, has SIPC ever failed to provide the insurance that their members pay for each and every month? Has SIPC ever broken their legally contractual agreements with their member corporations? Please provide us with any details if you have them, as I certainly cannot find any.
                      Vanguard (and every other US-regulated mutual fund company) does not hold funds directly. Funds are held by 3rd party custodians. Money Markets at brokerage firms are held by 3rd party custodians. One major reason for the lack of problems with mutual funds comes from the fact that they’re regulated by the Investment Company Act of 1940, which spells out the legal responsibilities of the mutual funds to their investors. In addition to the provisions of the Investment Company Act of 1940, the SEC also directly regulates mutual funds. While the SEC can investigate fraud allegations against investors at public companies like Enron and WorldCom, where the accounting is much more complex than at mutual funds, it has no authority to set corporate governance rules for these public companies. These are huge differences.
                      Further, Vanguard is a member of the SIPC which offers up to $500,000 of asset protection in the (highly unlikely) event it was to go bankrupt. Vanguard has also secured additional insurance through Syndicates at Lloyd’s of London that provides per-client coverage of up to $49.5 million for securities and $1.9 million for cash.
                      I hope this helps in your detailed and distinguished search for security and inviolability, Azure

            2. AB –
              I don’t think David is saying SIPC would fail, I think he’s saying he doesn’t know how long he might have to wait to get his money if something without FDIC protection had an issue. One report about the failure of the Reserve’s money market fund in ’08 indicated that even one year later, some investors still had not gotten all their money back.

              1. FWIW, I actually had a tiny amount in reserve fund when it went under (less than $100). IIRC, I got most of my money fairly quickly, but I do recall getting at least one subsequent payment, probably a year later (?). I don’t think I have any records of that anymore to check the timing.

                In the end, I got more than 99% of my money, but some of it was out there a while.

        2. Azure, with all due respect, I think you err if you view your Government Money Market Funds as riskless.

          Government Money Market Funds hold short term US Government obligations, 7 to 30 day maturities. In the event of a US debt default, it is possible that the MMFs will neither be able to have their maturing short term paper redeemed or buy new paper. So it is possible that there could be a return to 2008-2009 money market fund lock-up scenarios with suspension of withdrawals.

          In the event of an impending US debt default scenario, it may make sense to switch out of Government MMFs and into brokerage FDIC-bank sweeps, non-government commercial-paper MMFs or short-term ETFs. Just my opinion.

          1. Bear, I’ve NEVER said anything was risk-less including any Money Market funds you are I may own shares in. Your assumption is the Federal Government will default. I have been trying to get away from having the vast majority of my assets be dollar based (they are not). Because the US Government owns and controls a perpetual printing press they eventually will make good on any technical “default”. FDIC bank coverage has limits and they settle in US Dollars, just like SIPC. Can you please show me where a major US Money Market fund has ever defaulted and their clients have not gotten back their assets because the SIPC has failed to protect them? Has the SIPC ever failed to protect their members that pay SIPC insurance? I was part of a team that tried to bring FDIC insured banks to all the Walmart’s in the United States, but we were blocked at every turn as the large banks have all the politicians in their pockets and had the application blocked (it’s a very complicated story/issue reserved for any other time and place). Rest assured Uncle Sam has your best interest in mind 🙃
            You may find this of interest:
            In response to the 2007-2008 financial crisis, the SEC Commission adopted a series of amendments to its rules on money market funds in 2010 that were designed to make money market funds more resilient by reducing the interest rate, credit, and liquidity risks of their portfolios. Although these reforms improved money market fund resiliency, the Commission said at the time that it would continue to consider whether further, more fundamental changes to money market fund regulation might be warranted.

            Accordingly, in 2014 the Commission voted to require a floating NAV for prime institutional money market funds and provide non-government money market funds with new tools — liquidity fees and redemption gates — to address runs. Institutional prime money market funds are now required to float their NAV like other mutual funds, but government money market funds and retail money market funds can continue to use special pricing and valuation conventions to try and keep their NAV at a stable $1.00 per share. In addition, all money market funds except government money market funds are allowed, and sometimes required (unless the board determines otherwise), to charge fees on redemptions (liquidity fees) and can even suspend redemptions temporarily (redemption gates) when certain circumstances occur. Government money market funds can voluntarily opt into using these tools when certain circumstances occur, if the ability to do so is disclosed in the fund prospectus.

          2. Azure and Bear, the hypothetical default by the US Treasury reminds of a common trading desk story. A young trader says we should not hold XYZ because if a nuke flies, then it will default. To which the senior trader says, if the nukes start flying that none of will be here, so go ahead and buy it.

            Same thing if the US Treasury rally defaults. If that were to happen, the WORLD, not just the US would be in financial chaos. You would not be able to settle any trades. How about ACH and the Fed wire?

            Bottom line for me is that I do not lose any sleep over a potential REAL default on UST’s.

            1. I agree Tex – while anything is possible, losing the Treasury market via a default would tip the entire system over the edge. The only alternative I see to this wall of worry is diversification. There is no one asset class that can protect all of your holdings under every scenario. Spreading my assets across a variety of “safe” assets (Treasuries, FDIC CD’s, AA or better bonds, strong divi paying stocks) gives me solace.

              1. Proto, if they let a UST default go very long, the only asset class that will protect your holdings is lead. Can’t take your CD’s, dividend paying stocks, corp bonds, muni bonds, gold and/or silver into a grocery store to buy eggs and milk. Not to mention the all important liquor store. That path is how you get to the survivalist’s den. Stocking one month plus of food and water.

                To prove that we lose no sleep over this, we owned a house with a fully functioning and stocked underground bomb shelter. We sold it without hesitation and/or further thought a few years ago . . .

          3. Bear – there is no such thing as riskless. There is risk if you bury your money in a hole in your backyard or stuff it in your mattress.

            Every option has “some” type and amount of risk associated with it.
            I am Tex’s camp in that I think it is absurd to worry about Government MMFs because as Tex noted, if the US defaults, the WORLD, not just the US would be in financial chaos.

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