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.
A word of advice for those of you looking at energy stocks for dividend income. Don’t fall into the group who buy high and sell low. Oil is going to be around for a while so it makes sense to have a little of your investments here. This is a segment of the market like any other that has cycles to it based on a lot of different variables. Since the 70’s, the Middle East was of such great importance that the market would trade on any hint of war there as an example.
There are so many moving parts to the energy complex its hard to look at any one specific event that can influence demand and affect stock prices to make investment decisions on. Hurricanes, floods, wars, demand (recession, better mileage vehicles) over production driving down prices, borrowing costs going up (interest rates), over building of infrastructure ( think pipelines) depleting supply that strands assets ( think CORR , BPT etc.)
My view, no 10-K or very little. mid-stream bigger the better or a smaller one that has a monopoly, keep an eye out for major unexpected events like a war or the ending of one, look at historical highs and lows, compare recent highs and lows then see what the market is expecting. The smart market is forward looking.
Recent trend has been down as the market is expecting less demand as the recession kicks into higher gear. Friday’s jump in the market brought a similar jump in the WTI price which has been trending down below 70 a barrel
Everyday investors are ignoring NG is at a historical low and surplus gas is being produced by the oil producers and not just pure NG producers. All they are looking at is the dividend and stock price.
I guess what I am saying is pick an entry point, hold your nose and take a small position then commit to buying and selling to lower your cost average. At some point you will hit the lows. But always keep an eye out for storms, either a good time to buy or get out.
Finish what I was saying, ENB’s recent announcement they are lowering their fees on their mainline could be the start of something big. Several current pipelines being planned or under construction are still trying to sign contracts with suppliers to commit to the extra capacity these lines will bring.
I have no expert knowledge of this field and there are people over on SA who do. I learned my experience from the school of hard knocks. I repeat, I am no expert so please don’t blame me if you follow me down this path.
There may be a new way to become an “accredited investor” besides having a lot of money.
The “Equal Opportunity for All Investors Act of 2023” passed in the House on Wednesday on a 383-18 bipartisan vote. This bill would allow individual investors to gain accredited-investor status by passing an exam that would be established by the SEC and administered by FINRA.
No word of where it stands in the Senate. I didn’t read the text of the bill – no idea whether it will allow access to the “expert markets”.
https://www.pionline.com/legislation/house-passes-bill-allow-accredited-investor-status-test-access-private-markets
I just looked up the definition of accredited investor. Somehow I got the idea that the threshold was a net worth of five million.
No, no, no. no. no! The threshold is net worth of a mere one million. home excluded. By that criterion, there are a lot of 401K ‘accredited investors’ out there — including me!
I suppose I should feel smug and brilliant, but I don’t. A million dollars, as they say, isn’t what it used to be. It doesn’t even get you into the top ten percent of Americans ranked by net worth. The threshold, as far as I can work out, was established in 1933. The inflation adjusted value of 1933 million dollars is over 23 million today.
They should probably raise the threshold, or make everyone take the exam. It will be interesting to see what exam they come up with.
Bought another new issue CD for my FDIC insured IRA ladder at Vanguard:
CUSIP 46656MDF5 JP MORGAN CHASE BANK NA
5.50% due 07/16/2024 pays semi-annually, callable at par every 90 days with 5 days notice starting 9/16/23 🥳
It is during our darkest moments that we must focus to see the light,
I am Azure
Landing Got Cancelled: Job Market Still at Cruising Altitude with Some Bumps. Even Wage Growth for Nonsupervisory Workers Accelerated. Powell is scratching his head, after all the rate hikes.
https://wolfstreet.com/2023/06/02/landing-got-cancelled-job-market-still-at-cruising-altitude-with-some-bumps-even-wage-growth-for-nonsupervisory-workers-accelerated/
I know the market is heating up today….. but anyone see any “good” news on TDS? TDS-U up over 6% TDS-V up almost 5%. I don’r see reason why as only news is a slew of class action notices with the sleazy law firms looking to bag a bundle while settlement gives those “injured” pennies.
Probably this
https://seekingalpha.com/news/3977282-telephone-and-data-systems-gains-amid-letter-from-investor-gamco
Thanks!
Link to letter: https://www.globenewswire.com/news-release/2023/06/02/2681336/0/en/GAMCO-Sends-Letter-to-Telephone-and-Data-Systems.html
an old fashioned proxy battle…
Don’t see many of them anymore..
A good kick in the arse to hopefully get this moving in the right direction, and DOWN is not the RIGHT direction 🙂
An old fashioned proxy battle begun by an old fashioned non-insulting letter to management by an old fashioned normally non activist firm….. You don’t see that very often either, almost as infrequent as a bipartisan bill passing thru both houses of Congress…
Interesting article on the decline of ATM makers. Personally, I use one almost every week, but I am sure I am in a minority.
I depend on them when I am traveling overseas in countries where using cash is still “normal”.
https://www.americanbanker.com/payments/news/diebold-nixdorfs-bankruptcy-filing-emphasizes-the-squeeze-on-hardware
An everyday commodity we take for granted. If I was interested I would delve into what the cause would be. Competition, parent company loading them up with debt, diminishing demand by the public or a combination of the above. When I was in Junior high my dad was working for NCR when the ATM’s first started coming out.
Have not used an ATM for at least 25 years.
GJO Synthetic Fixed-Income Sec STRATS 2005-04, Float Rate Wal-Mart Stores
I wonder what’s to happen to this monthly floater’s rate once LIBOR goes away? Or who to ask for the answer……… This structured product floats based on 3 month LIBOR + 0.50 but its underlying WalMart bond is fixed rate 7.55% 2/15/30. If I read correctly, I’m not sure there’s a clear definition of what happens in the prospectus… Language =
“The “Swap Agreement Rate” for each Interest Period during
which no Swap Agreement Termination Event has occurred will be equal to
three-month LIBOR, as calculated for the Interest Period. “Three-month LIBOR”
means, with respect to any Interest Period and the related LIBOR Determination
Date, the London interbank offered rate for three-month (such period being
referred to as the “Designated Maturity”) United States dollar deposits,
commencing on the second London Banking Day (as defined below) immediately
following such LIBOR Determination Date, which appears on Telerate Page 3750 (as
defined below) as of 11:00 a.m., London time, on such LIBOR Determination Date.
If such rate does not appear on Telerate Page 3750 at such time, LIBOR for the
Designated Maturity will be determined on the basis of the rates at which
deposits in U.S. Dollars are offered by the Reference Banks (as defined below)
at approximately 11:00 a.m., London time, on the LIBOR Determination Date to
prime banks in the London interbank market for a period of the Designated
Maturity commencing on the first day of the related Interest Period and in an
amount that is representative for a single transaction in such market at the
relevant time. The Calculation Agent will request the principal London office of
each of the Reference Banks to provide a quotation of its rate. If at least two
such quotations are provided, the rate for that Interest Period will be the
arithmetic mean of the quotations. If fewer than two quotations are provided as
requested, the rate for that Interest Period will be the arithmetic mean of the
rates quoted by major banks in New York City, selected by the Calculation Agent,
at approximately 11:00 a.m., New York City time, on the first day of the related
Interest Period for loans in U.S. Dollars to leading European banks for a period
of the Designated Maturity commencing on the first day of the related Interest
Period and in an amount that is representative for a single transaction in such
market at the relevant time.”
Where to go to get a definitive answer?
You are retired with idle time. Try the Strats phone number on this SEC link for latest GJO filing last month… It sure seems the new SOFR act would fit this situation.
https://www.sec.gov/Archives/edgar/data/1340909/000138713123006854/strats20054_8k-051523.htm
Thanks, Grid. I appreciate it… I’ll give her a try on Monday….. Yeah, retired and old but weeds keep telling me I ain’t got no idle time… Maybe my ongoing Barry Sloane and NEWT episodes are wearing me down as you know I’d normally go find this out on my own…
BTW, for your entertainment pleasure here’s a great song about idle time by a cool but relatively unknown New Orleans band called the subdudes. how’s that for a great name for a band! https://www.youtube.com/watch?v=alcK9ZgykLs&ab_channel=TheSubdudes-Topic
“Idle time, they say, is a dangerous thing. You never know exactly what the time will bring. Just move along, not too fast, try to make the good times last, I’ve got all the time in the world.”
2WR, Just got done mowing myself. Hasnt been raining a lot so that makes it easier…. I listened to the song and won the bet with myself that I would not no the song. As the depth and breadth of your music know how runs circles around mine! ….I hope that number is a good live one and that Barry gave them a heads up that you are vigilant so they better just get busy and find the answer for you immediately, ha.
…btw, have you dabbled in any more bank issues lately? They had a nice run today.
ha… With my stay the course approach in general, I’ve not done much to take advantage of the recent run other than enjoy the runups on what I already own….. So beside CUBI and its preferreds, yes I do own NEWT common as well as the notes and also essentially not much more than starter positions in ZIONL, USB-A, WFC-Q, and probably a few others with WFC-Q being the largest….So no, I’ve not done anything strictly for the purpose of capturing a quick run-up… no excuses, just haven’t…
And while were at it, it was kind of strange day, wasn’t it???? Market essentially had zippo reaction to the debt ceiling resolution and yet explodes on a jobs report that in the recent past would have been interpreted as a “good news is bad news” event – where it only adds pressure on the FED to keep on raising…. What’s Monday going to be like?
Very strange day indeed. I did a lot of trimming and will be parking in a money market and earning around 5% until the next opportunity presents itself. I’m now at around 10% cash. My cash would have been higher if not for the fact that I bought some utility commons recently. I’m typically fully invested.
Yes it was Dick. I bought, sold, and repurchased on a 50 cent swing and then still finished up a dime at close with UCBIO. Sold a couple when they spiked and grabbed a few that hadnt jumped as quick and rode them up. I dont really like this sector so dont know how long I will stay. 5% is a nice hideout too. I like hiding out there too!
Grid, when I hear your back into swing trading I assume since your experience with TFIN you have been doubling down to make up for loses.
Dick has a good point. This has been a short holiday week. I’ve been busy but noticed in talking to customers and traveling around people have been using their vacation time and a lot of places are busy only because less staff. Traffic and stores have been quiet. See what the weekend brings. Probably more traffic with people headed home and rush hour picking up Monday.
Lot of traders will be back Monday, see how they look at the market with the big jump Friday in indexes. With no major news? will they jump in afraid they are missing the boat or will they sell to lock in some profits?
With the FED meeting in a couple weeks to decide on rates who knows? Looking at the past 6 months with the run ups in the market I have noticed traders like Grid seem to lock in profits and build up some cash waiting for the next drop.
I guess it depends on which reference point. TFIN has been a good trader for me. Made a couple bucks two times, then the last time it dropped over $2 bucks, but never fearing I did the loser Pennyless double down trade in $17s and am now up on this past cycle thanks to past week. I am actually comfortable holding TFINP for now as a higher risk shameless yield chase. Banks have been decent trading vehicles for me. But this is small ball stuff for me. I really dont like banks to begin with. But I may also keep that ASBA subordinate note I bought a few days ago. Nothing big there either, 600 shares if memory serves. I actually have more in CDs and Bonds than “preferreds”. And ALL-B, NSS, and PCG preferreds occupy a larger chunk of that. Im mostly just playing around and trying to run out the clock this year and protect my solid gains on the year.
2WR, with your knowledge of music you ever heard of the Squirrel Nut Zippers? and not talking about the candy. My wife’s nephew is in the band enjoying the travel and seeing the country while he’s still young.
Charles – I’ve heard OF them, but not heard them….. Seems to me it’s a band my son mentioned to me in the past but I don’t remember the context. Weren’t you the guy who mentioned “electro swing?” From wiki description of the Zippers I can see the possible connection…….
Wasn’t me. :’)
But they do mix in a little Zydeco? in their music.
https://www.youtube.com/watch?v=KJzWGkgFcTU
He’s their current base player
Electroswing was in my comment a week ago.
I did listen to squirrel nut zipper Today and I liked it.
The music is nice but the improvised dancing is excellent.
Lately, I’m into the club dance offs in the inner cities.
Salah is amazing.
I don’t have a link right now, but his robot dance of 13 years agoshowed his immense talent
Enter on you tube or speak it.
Salah robot dance, the fun starts at 3:00
2WR:
My educated guess is that the floater rate for GJO will be similar to the response I received from an Investor Relations contact person regarding another very old and different security that has a quarterly dividend rate that is tied to 3 month LIBOR:
“…….We will be relying upon the safe harbor provisions of the Adjustable Interest Rate (LIBOR) Act to transition the 3-month USD LIBOR index because there is no fallback language in the Certificate of Designation.
This equates to a 3-month CME Term Secured Overnight Financing Rate + a spread adjustment. The spread adjustment is specified here, in §253.4(b) and is consistent with your assumption in your email below:
https://www.federalregister.gov/d/2023-00213/p-29”
So it seems that the new rate for these older securities with no fallback language will be based on “CME Term SOFR Reference Rate published for a three-month tenor plus a spread adjustment of .26161%”.
As of 6/1/23, 3-month TERM SOFR was 5.27638%. Add in 26 more basis points and you get real close to today’s 3-month LIBOR rate of 5.5%.
I sold all my GJO back in March at $24.60, but would look to get back in once this floating rate issue gets resolved and it trades off some.
Thanks, KT – That’s what I would suspect as well, however I sure wish I could figure out who the right entity would be to confirm what’s going to happen. I think that would take some serious sleuthing to find out and I’m not sure I’m up for it at this stage….. This one’s been a deep in the back of the sock drawer issue for me and I’m not certain that would change with LIBOR going away….
BWNB v BWSN – Living a bit on the edge with Babcock & Wilcox, but right now there seems to be a 180 basis spread between these 2 notes both due in 2026. The bid side on BWSN 8.125% due 2/28/26 = 23.53 which gives YTM of 11%. The OFFERED side of BWNB 6.50% due 12/31/26 is 20.84 which provides a YTM of 12.80%. Go figure…. If you happen to own BWSN it seems like an easy swap trade….
https://archive.fast-edgar.com/20230530/AWL7HQ2CK2223ZZZ2K2D2ZZZ43VAZ2S2Z252/
If im reading this filing correctly, he purchased 7k shares and total owned is 12,000 + 9668 + 9673 = 31,341 × 11 = about 340k
correction….I think its
just purchased 7k and now owns
10000 + 12000 + 9668 + 9673 = 40,341 x 11 = 444k
in any case it seems like alot
Same guy (Wight, a VNO board member) purchased over half million dollars worth of the common VNO in the month of May according to insidercow.com.
I bought a little of the VNO-M yesterday.
I guess it is always a good idea to gamble some where. The company has been cutting the common dividends, and has suspended the common dividends. So it does make sense that 1 director has been buying up preferreds as they have not been suspended. It “sounds” like a lot of money, but several of the directors that work for my company make $400,000 + in stock, so they can afford to buy more because of the generous payout that directors receive. When a company stops paying the common, I personally make sure that I dont own any preferreds. Again, this might be a good gambling option to put money some where. They are also using the money from not paying dividends to buy back common stock. For me, there is plenty of opportunities in the market, but this not one as I dont see an improvement in the books.
Back to the tax free window as rates have ticked up a bit. One of my trusts bought:
INDIANA HOUSING AND COMMUNITY DEVELOPMENT AUTHORITY SINGLE FAMILY MORTGAGE REVENUE BONDS 2023 SERIES B-1 (SOCIAL BONDS) (NON-AMT) CUSIP 45505TG21 4.6% due 7/1/2048 @$100.365 YTM 4.55%
rated AAA Fitch/AAA Moody’s This is a new IPO tax free bond that settled 5/11/23. Since all housing bonds are callable anytime the YTC and YTW will mean little as there is a sinking fund starting in 15 years as well.
Do something today that your future self will thank you for. What is more important then to live a healthy live and in peace ✌️
I read an article (grain of salt) about 20+ yr treasury bonds trading at 2std deviations away from where a long term tbond mutual fund is pricing them.
I looked them up and they are around 30-38 cents on the dollar.
Anyone have any thoughts on buying these for cap appreciation? I would think with a couple rate cuts in 12-18 months these can trade back to 60 cents on the dollar? Any and all comments welcome.
sjc – Can you explain this a little more clearly – at least the part about a long term tbond mutual fund pricing the 20+ year Treas 2 std deviations from where they are now???? Are you sure which direction they’re pricing them, currently too high or too low? To me the question would be what category of 20+ year bond would react the most to a couple of rate cuts or more specifically a reversal of trend on interest rates. With the curve as inverted as it is and with the Fed’s primary ability being to influence rate on the short end, I would think long Treasuries would not be the vehicle of choice for your scenario… but remember this is coming from someone who hardly ever plays that game, so consider the source…
SJC, let me present the two most extreme outcomes of buying long term US treasuries.
1) Inflation falls to the point we see deflation. Ignoring US Treasury default risks, the thing you want to buy is zero coupon UST’s. They would have the largest capital gain as long term interest rates collapse.
2) Inflation is sticky and/or gets stickier. Maybe it goes even higher say to 6% to 10% like the late 1970’s. In that case, all long duration UST’s will be crushed. Zero coupons would be the worst hit. You would either want to be totally out of them OR be short them in some form.
Each investor gets to make their forecast/guess about the future path of inflation. This will guide your investment strategy regarding long term/long duration UST’s. There are smart “experts” lining up on both sides of this debate.
Of course all of this has implications for our preferreds/babys.
Good point about zero coupon bonds, Tex….. I hadn’t included them in the equation….. I guess now would be a good time to academisize the true meaning of “duration.” https://www.investopedia.com/terms/d/duration.asp
2WR, zero coupon US Treasuries are a great way for investors that have strongly held views on inflation/interest rates to trade. Easy to long or short ETF’s to achieve your goal. Look at the chart of Vanguard EDV for example. Up from ~120 to ~180 back in 2021 when long term rates fell. Down from ~180 to ~90 since then when long term rates rose..
Of course zero coupon bonds are the only class where the duration equals the maturity. For every increment up in coupon rate, the duration goes DOWN for a given maturity date. Translation: zero coupon bonds move the MOST for any changes in long term interest rates.
To clarify something about this conversation. There is no such thing as a Zero coupon Treasury. The closest to this is a Treasury STRIP and even this is more complicated because you can actually buy TIPS STRIP’s, where the payment at maturity adjusts for inflation.
search for the word “corpus” in this announcement to find it, in this case it is 912821KM6
https://treasurydirect.gov/instit/annceresult/press/preanre/2023/A_20230112_3.pdf
Anybody else interested in National Rural Utilities? They did $300 M of sub notes ($1,000) last week at 7.125%. They are 30 year notes that reset every five years at 5 Year T plus 353. Currently trading at 101. The 5.5% sub notes are rated BBB+. Sorry, no CUSIP
CUSIP 637432PB5
I would like to see a chart of the 5 year treasury yield vs. inflation to see what that 3.53 kicker generates above in real returns.
They have another sub note of 5.5% F/F at 363 plus 3 M Libor (?) trading around 94. I bought the new issue at a slight premium because I expect the inversion to reverse. I also like the 5 year call protection near 7%.
Schwab shows the new one as fixed, semi-annual payer
5.5% – S&P dropped the rating; Moodys is A at QOnline
I’m looking at NRUC – sorry if there’s another one at the bond windows.
Insider purchased about 242k of vno preferreds m&n for a child
http://archive.fast-edgar.com/20230525/AWL7HG2CK2223ZZZ2K2D2ZZZ43TAZ2R2Z252/
I did my math pretty quick, but 2,000 shares for their inheritors, of $11.52 is about $23,000 for the link you have. He did purchase more for some more minors on another transaction for about $80,000. Not sure how you calculated 243K ? Keep in mind this is VNO. It is a 2 bil market cap and the sky is falling in NY and office space and this is 1 director. This is not all the directors going all in.
According to insidercow.com, Russell Wight Jr purchased 49,341 shares of VNO at a total price of of $542,292.80, if I did the match correctly. The dates of purchase are from 5/11/2023 to 5/26/2023.
I tried an experiment recently.
I decided to stop making my bed after waking.
Well, the results were outstanding. My team won game 7, my portfolio improved and I collected 90 day old fees from clients yesterday.
I even sold some stocks at the high.
So, Today, I didn’t make my bed.
There’s hope for the “Summer of Newman”
Apologies to Jordan Peterson
You were making it every day, then messed it every night? Wow.
Another plus of not making your bed is all of those toxic fumes and dead skin cells from the prior nights sleep that were lingering under the covers and were trapped when you “made your bed” can escape into the atmosphere. By not crawling back into this cesspool of old sweat and gasses that have been lingering under the covers for 16-18 hours, your body will be able to rejuvenate itself. It has the same effect as “going commando”, skinny dipping or having a full body massage with essential oils. Once I started doing this I was able to change my daily shower to a shower only in months that have 31 days.
RayDaBoz,
I thought I had a system going until it didn’t.
Turns out the Missus made up the bed during market hours.
So, now, I need a new system.
Any one get their LNC-PD dividend yet?
QOL shows 6-1 as pay date, Fido didn’t play fetch.
As for Gasses, the stock market is full of hot air and toxic issues.
The Summer of Newman is still on track!
Tda paid Lnc-d
I’m chatting with Josh about that.
He thinks it may take till Monday to see the Div.
FWIW- article on regionals and NYCB:
https://seekingalpha.com/article/4608146-new-york-community-bancorp-risk-profile-and-valuation?mailingid=31632204&messageid=2800&serial=31632204.3320&utm_campaign=rta-stock-article&utm_medium=email&utm_source=seeking_alpha&utm_term=31632204.3320
I added 40% to my holding when it dipped under $6. 😉 Also re-entered NYCB-U in two accounts. I’m good standing pat for a year or two or longer. I think Tim is right, may still be too early, but as markets stabilize, regionals will rise again. Choose wisely.
For those holding SOHOB, SOHON and SOHOO – company restarted dividend payment a few months ago and is now paying 1 of the cumulative unpaid arrearages.
https://investors.sotherlyhotels.com/financial-info/earnings-releases/news-details/2023/Sotherly-Hotels-Inc.-Announces-Special-Preferred-Dividend-Payable-in-July/default.aspx
Nice to see this play finally coming together.
But the funny thing is that the market is totally unenthused about it. As of this writing today there were 400 shares of SOHOB traded and not a single one of SOHON or SOHOO.
I can’t help but wonder why the company isn’t tying to buy them back. The price of the D shares is less than par plus accrued interest.
Instead of paying special dividends, wouldn’t a share buyback be a wiser use of cash?
The “Special Dividend” is for arrange of the cumulative dividends outstanding. I think this will still leave 8 dividends in arrears to be paid, roughly $2/sh for each of the issues.
Correction – ~$4/sh for arrearage on issues.
I thought there were a total of 12 deferred dividends ($6ish) for 2020-2022.
It’s a little confusing since this year’s regular dividends are being paid either a month early or 2 months late.
Wouldn’t it be great if SOHO put a preferred dividend table on their website?
12 is the correct number
Under very few situations can the company do this per prospectus (and most that I am aware of have these restrictions, also).
Except as described in the next paragraph, unless full cumulative distributions on the Series D Preferred Stock for all past distribution periods shall have been, or contemporaneously are, declared and paid in cash or declared and a sum sufficient for the payment thereof in cash is set aside for payment, we will not:
•
declare or pay or set aside for payment of distributions, and we will not declare or make any distribution of cash or other property, directly or indirectly, on or with respect to any shares of our common stock, or any other class or series of Parity Stock or Junior Stock for any period; or
•
redeem, purchase or otherwise acquire for any consideration, or make any other distribution of cash or other property, directly or indirectly, on or with respect to, or pay or make available any monies for a sinking fund for the redemption of, any common stock, or any other class or series of Parity Stock or Junior Stock.
The foregoing sentence, however, will not prohibit:
•
distributions payable solely in shares of our common stock or shares of Junior Stock;
•
the conversion into or exchange for other shares of any class or series of Junior Stock; and
•
our purchase of Series D Preferred Stock, Parity Stock or Junior Stock pursuant to our charter to the extent necessary to preserve our status as a REIT.
The first distribution on the shares of our Series D Preferred Stock sold in this offering will be paid on July 15, 2019 and will be in the pro-rated amount of $0.41823 per share.
Thanks for the information Grid. That explains a lot.
Fingers crossed on this holding. Definitely not one of my better choices.
Thanks for the note FL_Guy.
Update on US Government Holy-Moly Debt, Interest Expense, and Tax Receipts, and How they Stack Up Against GDP
https://wolfstreet.com/2023/05/29/update-on-the-us-governments-holy-moly-debt-interest-expense-and-tax-receipts-and-how-they-stack-up-against-gdp/
BANK COMMON STOCK “SHORT %” (5/29/23)
PacWest…24.1%
BK Hawaii…18.3%
BK Ozark…15.1%
Western All…12.3%
Zion BK…11.1%
Axos Fin…7.7%
ServisFirst…7.31%
Provident Fn…7.1%
First Foundn…6.66%
Valley National…6.08%
Dime Comm…5.33%
The CUBI preferreds – FWIW, I was just getting around to noticing that CUBI-E and CUBI-F are now set to remain outstanding until at least 9/15 AND if the 9/15 rates were to be set today instead of on or about 6/13, they would go up by about 39 basis points each from 10.22% to 10.61% and 9.84% to 10.23%. They are only callable on 30 days minimum call notice and only on dividend payment dates. They both go X-Div on Tuesday, May 30. for $0.63929075 for E and $0.61514075 per share for F. With the markets closed today (Monday), doesn’t that mean it’s too late to capture the June 15 dividends if you do not already own these?
https://www.customersbank.com/investor-relations/press-releases/press-release/795c3d25-0bd0-490e-8a77-1c25070cb5b3/
Yes, since the EX date is Tuesday May 30th it is now too late to buy and capture the declared dividend on CUBI preferred E and F. I’ve always thought someone should offer a subscription service that shows every securities EX date BEFORE the actual EX date, so those that currently own or want to div capture are aware…
Smile 😊
The share price will adjust down to reflect the XD date tomorrow, which may or may not exceed the dividend amount.
If the decline is more than divy amount, you can buy it tomorrow morning and be “better off” in absolute cost basis.
If the decline is less, well, you miss out. 🙂
The CUBI preferreds are really interesting. On the most recent conference call management said that they had no intention of calling them. But if they’re actually doing well… shouldn’t they?
(Disclosure: I took a nibble on these a few weeks ago.)
I suppose in this sketchy environment for banks overall the prudent thing for them to do is to preserve cash and/or do not dedicate funds to the retirement of any particular class of outstanding…. with how quickly things can change, you could see where if the crisis came back and CUBI got bit all of a sudden, there’d be all kinds of legal tussles etc, if they happen to call them in just prior to fan hitting events…. So it makes sense to me that they hold back for now and just bite the bullet on the rates they have to pay…. However, what’s interesting is to go back to prior conference before the called in 3 series on 9/15/21. At that time they were extraordinarily cognizant of and mentioned the exact amount that would be added to share price EPS when they retired preferreds…. So, I also have no doubt that calling is on their minds, on the menu, but off the table for now.
2WR or anyone else, any suggestions for what to replace the TANNL, TANNZ, and TANNI with? hoping for a Baby bond from an energy related company.
EP-C work for you? 5 year piece of paper with YTM = 6.96% fully guaranteed by KMI… there’s also the USD ENB 5 year resets with current yield in the 7.70% range that’ve been discussed recently in the Canadian section along with a couple of good non-energy suggestions from the honorable Mr. Grid… CDN denominated ENB reset preferreds have even higher current yields, ENB’s IG rated and EP-C is split rated IG.
LoL 2WR I already have the EBBNF and the EP-PC was looking to add more of the EP but want a lower price. There was another ENB that was in USD but I don’t think I have it. The market has kinda calmed down, a lot of the BB’s on Tim’s list have dropped to the 6% range. Guess I need to wait for another sell off.
I have funds coming in from the DCP-B, COWNL, and the TANNL and Z that need to find a new home
Charles,
I have a lot of energy, in my portfolio…
There are three Enbridge preferreds that pay QDI in US Currency and are tied to US 5 Year treasuries.
OTC TMX Spread Reset
EBBNF ENB.PF.U
EBBGF ENB.PR.V 3.14 6/1/23
EBGEF ENB.PF.V 2.82 3/1/24
EBBNF reset ~ a year ago.
I also like a bond from Genesis Energy (GEL) which has pipelines in the Gulf of Mexico and a soda ash plant. The CUSIP is 37185LAK8 and it’s a shorter duration bond (2026) that has a YTM of 8% on dips.
Charles-
I like the ENB issues, but don’t like having to apply to the IRS to get back the Canadian withholding.
If I get it back — held in my IRA. Anyone know how that will work?
Well said and that makes a lot of sense. Thanks 2WR.
folks
does anyone here with a Schwab account know what they charge a U.S. investor for the following:
1) 5 character OTC symbols for Canadian companies
2) 5 character OTC symbols for other foreign companies
I am finding conflicting information on various sites.
Appreciate your guidance,
Howard
Howard, I am assuming you are asking because you have a Schwab account? If so, just place a dummy order in for a $1 a share, and it will show you what they are charging when placing the order. It should show even before you actually place the order.
Hi GB – No, I have a TDA account that is transferring to a Schwab account. I have looked at the Schwab website, but have seen different rates stated on other sites when discussing Schwab. I was confident of the Canadian pricing for a U>S> citizen, but not other foreign 5 character OTC listings. I appreciate the guidance of those that responded to my question. Helps a lot. Howard
Howard the Foreign OTC pricing is below the Canadian OTC pricing. Looks a little beefier in costs for those.
Foreign stock transactions placed on the U.S. over-the-counter (OTC) market9
Online Trades
$50 foreign transaction fee
Broker-Assisted Trades
$75 ($50 foreign transaction fee and a $25 broker assistance fee)
If you post the symbols you are interested in, I can check them. However, Schwab has mostly fixed the discrepancies with TDA, so the commissions should be the same.
Howard, Schwab investing website shows $6.95 per transaction. If you need phone assistance they tack on $25. US OTC issues are $0.00, but CAD OTC are $6.95 online…
https://www.schwab.com/pricing#bcn-table–table-content-74511
$6.95 for some foreign or OTC trades but there doesn’t seem to be much consistency. When commission for most trades was removed I got in the habit of making multiple small trades instead of one big trade. Now i have to pay attention and watch for these fees.
Howard, I have a TDA account which tomorrow becomes a Schwab account. I was paying $4.95 for OTC or 5 character Canadian stocks. I was told pricing will remain the same after the switch. I had $4.95 trades with Scottrade before TDA, so hoping Schwab will honor that as well.
Howard-
SCHWAB: US issue–
Buy 1 CRLKP @ Limit $20.00, Day
Reinvest Dividends: No
Underlying Quote Information
CENTRAL PARKIN 5.25% PFD
Chart
Last Price
$22.65 / 1 XOTC
Bid/Size 22.65 /3
Day Range 0.0000 – 0.0000
Day Change0 ( 0.00% )
Ask/Size 23.39 /1
52 Week 22.30 – 23.51
Today’s Open 0
Volume
Previous Close 22.65
0
As of 02:49 PM ET, 05/26/2023
Estimated Amount: $20.00
Estimated Exchange Proc Fee: Additional information about Exchange Fees $0.00
Estimated Commission: $6.95
Estimated Total Amount: $26.95
Canadian :
Buy 1 EBBNF @ Limit $17.00, Day
Reinvest Dividends: No
Underlying Quote Information
ENBRIDGE INC. 4% PFD
Chart
Last Price
$19.02 / 1 XOTC
Bid/Size 19.1 /1
Day Range 19.02 – 19.14
Day Change-0.18 ( -0.94% )
Ask/Size 19.48 /1
52 Week 19.00 – 24.48
Today’s Open 19.135
Volume
Previous Close 19.2
1,212
As of 10:30 AM ET, 05/30/2023
Estimated Amount: $17.00
Estimated Exchange Proc Fee: Additional information about Exchange Fees $0.00
Estimated Commission: $6.95
Estimated Total Amount: $23.95
I appreciate the help from all of those who have responded to my request for guidance on the commissions Schwab charges for OTC/5 character trades , both Canadian and other foreign Nations. ( David, I have no specific
symbol at this time ). Thanks, Howard
Howard,
My TD account transitioned to Schwab this week and I had new platform questions. I got a broker on the phone today and asked about buying IPOs of preferred stocks on the gray market before they move to an exchange, and the cost. We used ALL-J which is the only recent IPO (5/15).
The temporary grey market symbol is ALL+J and it offered no quote info on the Snap Order Ticket. At the bottom lower left hand of the of the page, there’s also a QUOTE box. When I entered ALL+J, it brought up a quote (bid, ask, etc. ) and a BUY icon.
The broker instructed me to use that BUY icon and set up an order for one share and then click Review Order. He indicated that if there was any issue with the security, it wouldn’t advance to Review Order page (for whatever reason, GAINL wouldn’t work). There was none for ALL+J, it advanced and indicated the commission was zero.
I don’t know about your Canadian and foreign companies but these bread crumbs might lead you to the answer.
Thank you for guidance. I did learn from your comment that after years of using a (-) symbol to indicate a preferred issue, I will now have to use a (+) symbol. ALL-J now ALL+J. Might take me a few months to remember after being on automatic for over two decades. One advantage of Schwab is that there are two offices within 30 miles of my residence. I may have to make a visit. Thanks. Howard
couple of added comments on schwab
-at schwab.com, the “+” works sometimes (ALL+J). Other times its “/PR” (ALL/PRJ, and on streetsmartedge its “p” (ALLpJ).
-There are a host of “buy” systems, and sometimes one works when others won’t. The most consistent for new issues is the little quote box at the bottom of a schwab.com page you mentioned. There is also the “all-in-one” trade ticket, and the snap ticket on schwab.com. They usually start working last (but not always). Streetsmartedge is completely separate (its run by a vendor), and sometimes works first, sometimes last.
-If you can’t get a buy system to work, call schwab. If you get a good person, they will place the order for you and waive commissions, so long as the issue is in their systems (see next item)
-Note that nobody can trade a new issue at schwab until it is set up in their systems. They don’t do that automatically – they wait until a client (a) complains that an issue isn’t on the site, and (b) makes enough noise that they actually set up the issue. They usually try to deflect clients (“it will probably be working soon”), but you have to keep after them until they get “trade support” involved to set up the issue (usually takes a couple of hours. I have been through this on dozens of new issues, and its always the same song and dance.
-when you call about a new issue, have the cusip. they are lost without it. (Some are even lost with it…) Funny thing is that most of the good support people use many of the same tools we do, like quantumonline.
I just use SSEdge chat and ask them to add the symbol to both schwab.com and SSEdge. Less effort than calling, and I don’t have to give a CUSIP.
Money Market Funds…
VMRXX…5.05%
VMFXX…5.04%
SNVXX…4.91%
SNOXX…4.79%
I need money for a house purchase. Cringe when I have to withdraw 5% money market funds, haven’t seen those in years.
Think on the bright side Martin. You will cringe less doing that than taking on a 7% mortgage, ha.
What good Money Market Funds are available on TDAmeritrade?
you’ll have to sign in to get this but try https://invest.ameritrade.com/grid/p/site#r=jPage/https://research.ameritrade.com/grid/wwws/research/mutualfunds/families?c_name=invest_VENDOR
Only the Schwab MMFs are available on TDA, so you can look at the Schwab page:
https://www.schwab.com/money-market-funds
SWVXX is near 5%, VMFXX over 5%. or I just transfer loose cash to my Fidelity account and pick up 4.75% until i find a use for it.
TANNZ, I, AND L – I see where all three have now officially been delisted. I wonder if some of the brokers such as TDA will take the same course they have on COWNL and now mark these to zero as well??
You might have 30 days that they will be listed at the old price, after that the price is “stale”. That is how Raymond James and some other brokers have handled it. Since these will be redeemed in less than 30 days, there may not be a period of $0 value.
This is from Fidelity on May 24. (for TANNL)
The below security was affected by a Full Call.
CUSIP: 894174309
Description: BP 8.00000% 12/15/2029 PFD
Rate: 0.000%
Maturity Date:
Redemption Price: 0.00
Redemption Principal: $0.00
Call Date: 2023-06-15
Good Times: I bought JP MORGAN CHASE BANK NA CUSIP 46656MCT6
New issue CD maturing 9/6/2024 @5.50% pays semi annually. Remember when many here said they would sell their soul for 5% CD’s in their portfolios; I do. The largest positions I have bought this calendar year are US Treasuries and CD’s. Let the good times roll https://www.youtube.com/watch?v=Zj-b3fWrY3w
What you think about you bring about, I am Azure
And for you fellow dinosaurs: https://www.youtube.com/watch?v=uM9yYL6BD-4&ab_channel=1SweetDreamz3
Well I don’t think it was playing in the 70’s on KHJ when Machine Gun Kelly was DJing and I grew up listening to.
Azure this is a callable correct? The yield is getting juicier, but I want them to start being less stingy and give me an 18 month to 5 year, 5.5% noncallable, now.
Hey Gird, yes this 5.50% JP Morgan CD is callable in 6 months at par. I’ve been creating a CD and Treasury ladder out about 5 years that I’m very happy with. I’m sure you also know I have a tax free (primarily insured) bond ladder out about 20ish years as well that I don’t even look at because I will never sell these bonds before call or maturity. The risk level in my portfolio is so low now and my goal was to take out the vast majority of any volatility out. While I’m traveling or trying to buy more land to commercially grow trees 🌲, I don’t always have time to watch the markets and my objective is not to lose the kingdom. I keep seeing more issues with preferreds when the underlying company gets taken over or they run into trouble. The environment for risk is not great IMHO and getting north of 5% on CD’s and/or money market is amazing. Be well and take care of yourself ✌️
Question on the callable CD’s – with the preferreds we know there is a cost to reissuing a new preferred at a lower rate when rates are dropping so that the issuer will need to achieve perhaps a .5 to1% rate reduction in the new issue to make it worthwhile. How does that work with CD’s? Do they typically get called and reissued with a slight drop in rates? The reinvestment risk with callable CDs seems very high.
Banks don’t have the underwriting fees that preferred stocks do so they can call on a small drop but back when I bought them they typically waited for more than a few points down. Of course they have other considerations depending on where their money is. Since banks have money in so many places they don’t necessarily have to re-issue when making a call.
Anyone know any details about brokered CD fees – do the brokers typically get a single fee up front only? Or do they get a stream of income as long as the CD is outstanding? Any idea about how much of a fee the brokerages get for being the bank’s middleman?
Related to that – does anyone know how much SaveBetter takes as a commission / fee from the banks on their platform?
I purchase CD through Fidelity and Merrill often. The PAR is always $1000 ($100 possible for some offerings on Fidelity); there is no premium, transaction or commission charged when purchased as IPO. The secondary market for CDs is spotty – I always hold to maturity.
Azure, thanks for posting this.
I can find it at E*TRADE, TDA and Schwab, but only E*TRADE offered it to me; with the other two I had to search specifically for the CUSIP.
Which broker did you use to buy it (just comparing notes)?
Hi there, this 5.50% CD was at Vanguard today. It’s the highest yielding CD I’ve seen in quite a while there. I do not believe the Fed is done raising rates. They may wind up pausing this upcoming month, but I think there are just too many signs that point to further raises from the Fed. Such interesting times we are all living in, Azure
Bur Davis, at TDA, under new CDs, you may want to scroll down and click on “Show All” box. TDA ran out of the JPM 5.5% CD and it could not be found for a few minutes. But it can be found now as it is being offered again.
Thanks for the pointer, GnG, and thanks again to AB for posting
Curious as to why this would have been issued ( no call, no maturity):
BACRP Bank of America Corp. 7.00% Series B Cumulative Perpetual Preferred Stock liquidation preference $100 per share, Not redeemable at the issuer’s option, and with no stated maturity. Cumulative distributions of 7.00% per annum.
last price 229.95 with 200.00 bid 229.95 ask Weird
Can be bought at Schwab.
Looks like IPO was in ’97, Pink sheets in ’21 – also quoted on Nasdaq
Maybe an old Merrill?
Originally a NationsBank preferred. About 7,100 shares remain outstanding. Other shares were, presumably, acquired by the issuer or its successors over 25 years and retired (original issue was 35,045 shares). Volatile action in BACRP over the past six to 12 months. Share price over the past year has been as high as $360 (2% return) and as low as $112 (6.7% return). There’s been a lot of speculation about price movement, none of which has proven true, yet! No tender offer. No single entity announced an intent to buy all outstanding shares. Mystifying! One of the few cumulative bank issues that is non-callable. It’s a forever annuity, as long as B of A remains solvent,.
Originally a NationsBank preferred. About 7,100 shares remain outstanding. Other shares were, presumably, acquired by the issuer or its successors over 25 years and retired (original issue was 35,045 shares). Volatile action in BACRP over the past six to 12 months. Share price over the past year has been as high as $360 (2% return) and as low as $112 (6.7% return). There’s been a lot of speculation about price movement, none of which has proven true, yet! No tender offer. No single entity announced an intent to buy all outstanding shares. Mystifying! One of the few cumulative bank issues that is non-callable. It’s a forever annuity, as long as B of A remains solvent.
Sorry about the double post. The “Post Comment” prompt didn’t respond but, apparently, the post occurred
BACRP was a good flipper earlier in the year in tiny volumes. I started buying with the intention of holding it, but the capital gain temptation was just too great to resist.
I never managed to collect a divi, either.
I was buying in the $150-170 range, selling for about $40-50 a share more each flip. Got completely out at $300 last month (missed the $360 peak) and haven’t been able to get back in. Wish I could have been trading a thousand shares at a time, but the volume just wasn’t there.
I am hoping it will drop again, but I am not holding my breath.
I don’t get it. Why would anybody pay this when non-callable BAC-L is yielding 6.31%.
Don’t know why people are paying $250-360 for it. Crazy (to me).
I started buying in tiny quantities at around $160 as it was falling from $360. I was hoping it would fall below $120 (it was below $100 for a while last year). Never got there, so I never had a lot of shares.
I still have a low-ball bid in, but I am not holding my breath.
Private, I got to trade maybe 30-40 shares maybe 4-5 times early year around $130 and selling about $180-220. But I blew it about 2 months ago. A 100 shares at $143 were offered and I bid $137. 9 shares were sent to me but somebody snatched those 100 shares. By the end of the same day somebody bought those or a different 100 share lot at over $200. I sold mine puny 9 shares the same day at $210. I blew it! It does seem like a game of chicken though as its got higher and I wont play the game here. BTW, I dont know who is buying or if its a bot gone astray. Or if they are the same shares ping ponging back and forth. I did notice the share count has dropped a bit. But those could be tenders and not BAC buying them in open market as it wasnt a lot.