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.
FYI
New Mountain Finance Corporation Prices Public Offering of $300 Million 6.200% Notes Due 2027
NEW YORK, Sep. 23 /BusinessWire/ — New Mountain Finance Corporation (the “Company,” “we,” “us” or “our”) (NASDAQ:NMFC) today announced that it has priced an underwritten public offering of $300 million in aggregate principal amount of 6.200% unsecured notes due 2027 (the “Notes”).
TIM-
Not on the NEW list.
a rebalancing portfolio dilemma
i have a dilemma, but its not a bad problem to have.
during the covid crash I bought a stock (TRGP) at under $6 a share in a taxable account. the stock has been a steady performer until this year when it began to skyrocket and is now sitting at 155+ a share up over 80% just this year.. the position has become to large a weight in my portfolio (over 15%)
im comsidering buying out of the money puts against it in my IRA. maybe 10% or so out of the money. that way if the stock gets hit hard i can sell the puts in my IRA tax free to cover any losses on the stock.
am i crazy to even consider this?
I don’t like playing against myself I’d just cash out part of the position if you think it’s overvalued. Long term gains tax is 15 or 20% is that enough to hedge against? Unless you have other reasons to buy puts other than a straight hedge. Some people can maker it work but it’s certainly not basic strategy. If the price drops you’re not losing the full amount of the drop since you’d be saving the tax liability.
If I were doing it a thing that would concern me is that if the puts bought in the IRA lose value or expire worthless, now I’m in an even worse situation. I can’t deduct the IRA loss, and I still have the taxable gain.
The daily IV on TRGP options looks to be about 1.6%, which isn’t terrible so I wouldn’t necessarily be worried I’m overpaying for the put.
Certainly out of my bailiwick for sure but by doing this in your IRA aren’t you trying to hedge your long term capital gains profits in your taxable account by looking for profits that will count as ordinary income eventually in your IRA account if the hedge turns out to be a good thing to have done? Is that entering into the thinking or should it?
How about donating some of that stock to a charity? Generate a nice tax deduction, do some good in the world…..
I did that with some of the stocks I acquired during the covid drop. Some were up multiples of what I paid for them, so the tax benefit was nice.
For donations of appreciated assets, you normally get a deduction for current market value, and will never have to pay tax on the built in gain.
Donations of appreciated property – one of the best little nuggets in the tax code…
The panic from last week on the question of if ETI PR was going to be called seems to have been a good buy for me. I have a small unrealized capital gain and will collect the upcoming dividend. As I said at the time I would have been happy to just park the money short term and get it back when it was called.
I bot CCIA at 25.85 7.04 ytc 10/31/2025 matures 10/31/2028 .. the CCIA/SJNK pair has gone from 2 sigma rich in early august to 2 sigma cheap today (1yr horizon)
How are you getting a YTC of 7%? My understanding is that it is a monthly payer that just went ex. I am getting a YTC in the 5’s.
When you are undeterred by either proper bond convention or math you can come up with something like 7.05% but rest assured, your “in the 5’s” number is accurate – 5.56%.
i stand corrected ..i get 5.81…my apology
JMO, but I think EICC/B/A represents a much better value. Particularly, EICC. I believe that issuer CEF EIC is safer than CCIF due to holding predominately debt as opposed to CLO Equity… and EICC is trading @ 25 thus yielding similar YTC and YTM of 8%. I’ve loaded up the truck on the C issue (8x normal position size) and having a hard time not buying even more.
CCIA pays 8.75% with a div of $2.1875 which looks like it should work out to about 7+%, no?
Fido calc: YTC= 5.556%, YTM = 7.779%, pd monthly.
2WR….. Yes it does. Looking back the dividend determination date for NLY-F was 7/30. Guess NLY took a week to announce it via a press release on 8/7. I guess I am used to plain English rather than the language used in legal documents. Thanks for the help! I was mostly curious, but am tracking my floaters pretty closely now that the Fed is acting to decrease rates. As long as rates don’t crash I don’t think the floaters will be dramatically affected. Redemptions may happen if the issuers see an opening to save some bucks by replacing them with lower yielding ones though.
Where do you see NLY saying the Dividend Determination Date was 7/30? That doesn’t seem right… Theoretically it should have been either June 28 or 27 (that pesky payment date ending up on a weekend always makes it tough to know for sure imho)
2WR….. Whoops! My mistake. Meant to say the next dividend period began on 7/31 ( a Wednesday ), which means the dividend determination date was 7/30. It was announced by Annaly via a press release on 8/7, a week later. Have I got it right now? I’m in the midst of the six month inspection and testing of my septic system as required by the authorities and must have breathed too much of the fumes. Addled my thinking…….. Ah the pleasures of home ownership inthe country!
Nope. There’s nothing in the presser that says the next dividend period would begin on 7/31. The dividend period in fact began on 6/30 [ignoring for simplification that 6/30 was a Sunday], the payment date of the last coupon. Going back to the prospectus again P S-22, “Dividends on the Series F Preferred Stock will accumulate daily and be cumulative from, and including, the date of original issue and will be payable quarterly in arrears on the last day of each March, June, September and December (each, a “dividend payment date”); provided that if any dividend payment date is not a business day, as defined in the articles supplementary designating the Series F Preferred Stock, then the dividend which would otherwise have been payable on that dividend payment date may be paid on the next succeeding business day with the same force and effect as if paid on such dividend payment date.”
2WR…..
Oh heck. Sitting here in a chair beside the septic tank I see how I keep getting the dates wrong!!!!! I was looking at dates for NLY, not NLY-F. NLY-F is a month difference with the next dividend period being 6/30 (Sunday). The proceeding business day was 6/28, which should be the dividend determination date. They took a month to announce it? Looks like my water hose in the septic tank has given me enough water for the pump flow test. Let me do that, flush the filter between the solids tank and water tank, dose it, and fill out the paperwork. Finished! Thanks for putting up with my bumbling.
Ooops – missed your self correction before writing… Now you got it… Where do you live that requires you to test the septic tank every 6 months? Yikes! I’ve lived here in TN for 17 years and only found out where the sucker actually is this year and that only because I had to answer questions from prospective house buyers regarding the tank…. had to get RotoRooter in to even locate because I could only guess.. As it turned out, I guessed wrong..
2WR….. Live in NC. I live in a part of the state where the coastal plain transitions to the Piedmont. This area is real spotty for suitable soil for septic systems. My exact area is really poor. The state has really gotten aggressive on septic systems as this area has developed. NC State University in Raleigh had done a lot of research on developing special systems that can be used in poor soils and I have one of those. It cost almost triple a conventional system. The suitable soil for the leach field at my house is only the first 12″ where it should be at least 30″. I have what is called a low pressure pipe system. I have a solids tank that collects the sewage from the house that overflows to a water tank with a float operated pump. The pump periodically pumps water a couple hundred feet to the leach field. The leach field has ten sixty feet laterals dived into two groups, each group is fed by a header with a manual valve to control the flow in that group. Each of the laterals contains a 1 1/2″ pipe with two lines of 3/16″ holes spaced 12″ apart. The lateral is 12″ deep amd 12″ wide filled with #57 gravel, the pipe laid on top of the gravel, then four more inches of gravel capped by four inches of dirt. I have special clear pipes I attach to end of the first lateral turnup marked in one foot intervals. I flush each lateral in turn by closing one group off and opening the other group wide open, th n removing the turnup cap on each lateral on turn. When done flushing I place the clear marked pipes and adjust the group valves to get abut 2 feet of head in the clear pipes. That’s why it is called a low pressure system. There are other things I am required to do, but you should have the idea. 28 years ago when I built this house I attended a two day school to become a certified wastewater II operator to allow me to do the inspection/ testing required every six months you must have done by a certified operator. Costs several hundred dollars every six months. That’s a lot of steak dinners! Sorry for the long explanation. It’s interesting my million dollar house is dependent on that system. I take very good care of it! It’s not rocket science, especially for this NC State Engineering graduate. Oh, forgot one of the most critical things to do. There’s a filter between the solids tank and water tank to keep solids out of the pump and leach field. Clean every six months. If it clogs you know what can back up in the house. Don’t want that! By the way you should have your system tank pumped out every 5 years or so and checked out, assuming it’s a conventional system. Sooner if you dump grease and other crap in it.
Please somebody buy my house so I can continue to live in ignorance on this kind of stuff…. Let the retirement community deal with it in my next abode….
But I bet I had a septic tank problem in the past that nobody else has had. In Montserrat, while living with the ash (not lava) from the active volcano, our tank got filled to the brim with volcanic ash, aka, sand… Living near the ocean, it was all downhill to our house when it rained hard bringing on what’s called lahars. I suppose what we experienced, not being directly on the slopes of the volcano were not officially lahars, but they might as well have been…. I didn’t even know it was happening to our tanks until we had shall we say a nasty explosion in the downstairs toilet…. Uhhhhhhhh. not fun…. We had to get people in to literally get down into the tank and shovel it out by hand, no machine…. what a nasty job!!! I should have suspected something like that could happen because on one of the worst days, the mud flowed so hard that it covered the floors inside the house despite everything being closed up tight!
2WR……. Nope I have never had anything like that nor hope to ever experience that! Didn’t mean to scare you, but if you like I can tell you about troubleshooting / repairing my refrigerator when it started to not recover from a power outage. Lucky I noticed it not running after one of our occasional power outages, else I could have come home from vacation sometime to a stinking mess. I am also not ready to move to a retirement community and deal with that. I would rather put up with my house etc. Thanks again for explaining determining a floater dividend.
DJ – doing some backward math, their announced rate on 8/7 for the 9/30 payment as of 10.586% coincides with rounding to the 5.332 rate for 3 month Term SOFR rate on 6/27 based on barchart’s number.
I’m not being able to call coments on particular issues. i think there used to be a window that when used woul bring comments in that particular security. that option is no longer available ?
Regarding MYGA’s.
I have one that is reaching the end of it’s guarantee period and I’ve received a notice that if I roll it over I will have to pay the premium tax of 3.5%!
I’ve never even thought the annuitant would get billed for this, but every contract I have says the insurer can deduct the premium tax from the contract value.
Nevada has the highest tax of any state on non qualified annuities.
Most states do not tax this, however California does.
Just a warning to ask when you buy a MYGA and get the response in writing from the company
You’re reconfirming my skepticism regarding annuity products in general… I’ve had a few, spent hours pouring over the documents behind the ones I chose to buy in order to be aware of all consequences and all options required to be chosen before buying and not one of them ended up acting the way I thought they were supposed to act based on my due diligence.
2WR normally when I Google something AI’s response has been at the top return and then I scroll down to read what has been brought up off the web to see if they compare to the condensed version AI presented.
In this case, MYGA returned Ad’s politely listed as Sponsored. Then the AI response was listed several rows down. Makes me wonder how impartial an answer from AI might be?
I asked Chatgpt “IN what year did Michigan State rally from a 19-11 deficit late in the third quarter to beat Illinois 59-19?
I received a DIFFERENT incorrect answer more than 30 times.
2white,
Well, this is an issue specific to Nevada. There are actually some good deals in the advisor annuity market. For example Corebridge had recently been paying 5.75 on a 5 year annuity that has no surrender charge, only an interest rate adjustment called “market value adjustment”
I did not do the arb, but you could short their 5 year debt at approx 5%, and buy an annuity from them at 5.75, then while making a small amount on the interest rate arb you hope for a credit event with Corebridge , which would allow you to close out the annuity at par plus/ minus the interest rate adjustment, and cover the short at a discount to the short price.
It’s an idea I thought about. If I could only deduct the opportunity cost of not engaging in this arb, I’d pay 0 taxes.
As Tim pointed out in “Let’s Wrap Up This Week”, three-month SOFR has not moved even with the lunacy of the 50 basis point cut by the Fed. It closed at 5.37% as of Friday (9/20). It will be interesting to see if this starts moving down, but for now all those floaters will not see any reduction in yield. How long will this last??
This has been discussed numerous times here. You’re focusing on the wrong 3 month SOFR rate. The one relevant to F/F rate issues has moved down dramatically from the 5.37% level. It is currently @ 4.69%, down an additional 6 basis points just over this weekend…. it becomes harder and harder to accurate explain the difference as https://www.cmegroup.com/markets/interest-rates/stirs/three-month-sofr.html gets practically impossible to log in to anymore at least for me, but I know my info is accurate as I own F/F issues and have seen the coupon payments come down… I believe it may be called 3 month TERM SOFR, but it’s tough for me to yet again provide a link to clarify the difference… Right now you can see the current RELEVANT TO FLOATING RATE ISSUES 3 MONTH SOFR RATE, by tuning in Bloomburg TV and watching the number come up on their rotating column of stats on the right side of the screen . The exact # right now is shown as 4.6913%
A little egg head summary from 2021 but needs updating https://mcmillan.ca/insights/sofr-fundamentals-what-we-know-so-far/
“You’re focusing on the wrong 3 month SOFR rate. ”
Thanks for the reply 2WR. Hope you and everyone have had a great weekend.
How many 3 month SOFR rates are there??
https://www.cmegroup.com/articles/whitepapers/cme-term-sofr-solidifies-its-benchmark-position.html
Thanks to everyone who replied. You folks are the experts, so thanks for dashing my hopes of no reduced payments! My CUBI-F will still be paying over 9%, so hopefully the share price can hang in there.
We may have lucked out on CUBI-F for the next coupon because I think the rate for 12/15 will have been set based on 3 mo Term SOFR on 9/12…. I always get confused for the exact date when the coupon payment is scheduled for a weekend day but I think the second London business day immediately preceding the first day of such dividend period should be 9/12 and if not, then 9/13. Barchart has SOFR = 4.94% on 9/12, so theoretically F’s 12/15 coupon payment should be based on 4.94+.26+4.76 = 9.96% or approx 62.25 cents. Quite high rate in this environment, an argument for F/F issues with high reset numbers in general to not come down much in price in a declining interest rate environment, but still, it will be down from the 9/15 payment of 65.48 cents.
Have you tried this site?
https://www.sofrrate.com/
It looks like it has not updated since Friday but it is close to the rate you mentioned. It does not explicitly say that is the “term” rate, but I am not sure what else it would be given the value.
Also, Alexa has a skill that you can add where your daily briefing will give you the 3 mo term SOFR, and various interest rate/inflation rate data. You just say, “Alexa, give flash briefing.” It returns 4.82% tonight just like the site linked above.
Unfortunately this is again the wrong SOFR to use when thinking about preferred stock reset rates. The links that 2whiteroses gave explain the difference. The text on the page you linked also explains the difference: “Note these term rates are calculated in arrears (they average historical SOFR rates) as opposed to being forward-looking like swap rates”.
The correct number is a forward-looking average derived based on the price of futures. It’s an estimate of what will happen in the future. The numbers you have found are based on simply averaging the historical overnight values. Or in the case of the headline number at the top of the page, just the current overnight rate itself.
Straight from the Fed themselves. Remember most preferred stocks are pegged at the 3-month SOFR. https://www.newyorkfed.org/markets/reference-rates/sofr-averages-and-index
I’m going to reply to myself because the previous post is wrong. It is the 3-month SOFR rate but the three-month CME Term SOFR, emphasizing the CME. 2whiteroses is correct in his post. https://www.cmegroup.com/market-data/cme-group-benchmark-administration/term-sofr.html This morning the rate is 4.66795%.
Does anyone know a F/F rate bond or preferred issuer who announces the new rate at the BEGINNING of the float period when it floats instead of when the payout is declared? If there is, then that would be an easy way to verify that 3 mo Term SOFR is what’s being used by using the SOFR rate on the day it was calculated +.2616 + the premium associated with the individual issue itself and comparing that to what’s declared….. This can also be done after the fact using the historical data at https://www.barchart.com/stocks/quotes/SOFERMM3.RT/interactive-chart, going back to the day the floater is set, throwing in the numbers and then comparing that to the dividend one has received for the full pay period. Either way should verify that 3 month term SOFR is being used… Most likely your numbers will vary slightly from the payment paid out due to a few rounding assumptions, but you should get close enough to verify 3 mo term SOFR is the relevant one. Also for sake of accuracy, don’t forget that most (not all) floaters use the SOFR rate from 2 business days before the last payment date to calculate the new rate. See? There are always ways to bog down your portfolio performance by spending far too much time on detail minutia. lol
Does anyone have an opinion on the managed and unleveraged ETF -JBBB
that invests in BBB rated CLOs; with a yield of 7.70% this is high vis a vis alternative issues; am I missing some risk factors maybe?
I’ve owned it for a while (a whoppin’ 500 shares), seems to behave. But, the credit markets haven’t really been tested in a while, so I’d say it’s a TBD on the risk. There’s JAAA and PAAA if you’re looking for the high-quality CLOs and don’t already own.
My beginner’s opinion is that it’s probably as or more safe than a similarly rated bond, and thus currently offers a pretty good return. Barring a deep recession, they’ll probably keep paying.
One possibly risk factor you might not be considering is that that CLO debt tranches are typically floating rates. That is, unlike a fixed bond, the yield for a given tranche is expected to go down as interest rates drop. Price may thus drop depending on how the market reacts to the lower yield.
Note also that despite the name, they are allowed to hold B and BB rated tranches as well, although it looks like they currently have only 1.6% rated less than BBB: https://www.janushenderson.com/en-us/advisor/product/jbbb-b-bbb-clo-etf/#credit_quality. I think in the past it’s been a bit higher.
I presume you’ve read some of Steven Bavaria’s writings on CLO’s? If not, he’s a good place to start: https://archive.is/3stzC
Money creation comes from deficit spending and new bank loans. Both contribute to liquidity in financial markets. The rate of deficit spending will necessarily remain high in order to service the debt. Here is a peek at the level of bank credit, which has recovered from the recent slump:
https://fred.stlouisfed.org/series/TOTBKCR
Never Quite Enough
Jonathan Clements | Sep 21, 2024
WE ALL HATE LOSING—and life, alas, is full of it.
https://humbledollar.com/2024/09/never-quite-enough/?utm_source=mailpoet&utm_medium=email&utm_source_platform=mailpoet&utm_campaign=another-ses-test_7
Jonathan Clements is the founder and editor of HumbleDollar and sadly dying of cancer
Thanks for posting. Profound reflective thoughts. So true. Yes, a sad outlook. I have subscribed.
I know some here have multiple subscriptions to different sources of news. In looking for C-corps this morning for tizod I came across a post by pipeline dancer in one of the comments section on SA very knowledgeable. They referred to an article in the WSJ Thought people might be interested.
https://www.wsj.com/finance/commodities-futures/the-u-s-corn-crop-is-great-farmers-finances-not-so-much-f9bea8f0
Doesn’t bode well for stocks I think associated with farming in the Midwest such as CAT, UAN maybe even CHS
I think 2025 will be even worse unless there is too much rain which could wipe out crops.
Link to WSJ article Charles mentioned
https://archive.ph/OSe1A
Private, When do you think all this buying enthusiasm is going to die down? The VIX seems to be asleep.
Wondering the effect of reduced US farmers profits on John Deere (DE) sales. DE sells in 30 countries so how are they doing? Sales are down. From their New Release: “Worldwide net sales and revenues decreased 17 percent, to $13.152 billion, for the third quarter of2024 and decreased 11 percent, to $40.572 billion, for nine months.”
What’s most important is what will their sales and profits be next quarter and next year? I do have decent capital gains this year in my small holdings of DE. They are doing cost cutting so not expecting much or any sales growth.
I am chickening out on HESM, and have a sell in. I like it alot, but takeover experiences have not been good and HES is selling, so…
I need to replace it with similar and would like to stay in that business, but no K1 for me. Any suggestions welcome and I’ll look into them!
Tizod that is a hard one. They converted to a C-corp in 2019 so I assume you bought after that at a good price. Your problem is the market is priced to perfection so a lot of the mid stream that are not K-1 are yielding 4 to 5 % on return if you invest now, compared to the 7% or more you are getting.
I’m interested too, so I did a little research. You want to take a risk this one starts paying a dividend or gets bought out look at SMC
OKE, KMI, TRGP are the ones over valued in my opinion.
Charles – Thanks for the post, SMC looks interesting.
JP I am done for the day. BUT I implore you to look up pipeline dancer on SA and read their comments about the oil fields SMC services and some possible future issues. Similar to HESM they service limited areas of the US and what is the future value of those pipelines?
Both HESM & SMC are a pass for me, but they may fit your needs.
The merger is not expected to close until mid-2025 at the earliest.
i initiated a position last few days; price dropped on add on offering ;
EMB is a possibility ; it’s a Canadian Co. so you you have the 15% source tax;but the yield at 6.64% very competitive ; can recoup the foreign tax on your tax return .
Oh wow, I just got to thinking about the radio talk show money talks. I used to live away from home while working in Sacramento then commuting home every weekend. Listened to Bob Brinker show on the radio. Since I haven’t commuted in years I lost touch on listening in.
Just Googled him and he passed away last month. he never pushed or sold anything except good financial advice.
Hopefully he enjoyed his last few years
Looks like his Marketimer newsletter kept going & still is, after he retired in 2018.
I recall listening to him- singing the praises of ginny maes,etc.
me too ; he’s 83 now and maybe still writing that news letter;
here is an oxymoron ; Brinker did not believe in timing the market trading on his radio show ; but the newsletter is called “Market Timer” that always had me scratching my head!
opps i misses the fact he died; Aug 18 th ; my bad
The newsletter is Bob’s son, also named Bob. When Bob Senior was still broadcasting, Bob Junior started the newsletter specializing on income issues maybe even CD’s IIRC. Bob Senior did not push his son’s newsletter heavily and people often got it confused with Bob’s “Market Timer.” Have not followed Junior’s newsletter so have no opinion on it. . .
From Junior’s 8/31/24 post
My family and I are moved by the support and kindness we’ve received from readers and listeners following the death of my father, Bob Brinker (Sr). Your heartfelt messages, memories, and condolences have been a source of comfort. Dad always cherished the connection he had with his listeners and your outpouring of support is a testament to the impact he had on so many lives. Thank you
Finally, SPX made a closing all-time high.
Why anyone would be surprised or confused by the Fed’s cuts baffles me. Powell, et al. telegraphed the move ahead of time and gave the reason. Labor market (apparent) weakness has become the dominant issue. Read the statement. (No, it wasn’t politics or any other weird theory.) 50bps accounts for a cut at this meeting and the previous one when they weren’t sure enough to jump in. Not an emergency or supersized cut or anything alarming.
3-month term SOFR is ticking down below 5%.
https://www.chathamfinancial.com/technology/us-forward-curves
More interesting is while the t-bill end of the yield curve has fallen for three days, as you might expect (SNOXX loses a bip a day), the coupon end has risen. The bond market strives for an illusive equilibrium.
https://www.ustreasuryyieldcurve.com/
I can picture the entire curve settling around 4%, plus or minus. There are scenarios in which the long end rises or falls that depart from 4%.
3 month SOFR is ticking down below 5%? It’s already ticked down to 4.75%
2wr-
I checked the Chatham chart and the latest data point for 3-month term SOFR is Sep 11. No doubt, your number is more recent.
Their Forward Curves page isn’t updated daily, but If you click on their “US Market Rates” link under “Tools & Technology” header (https://www.chathamfinancial.com/technology/us-market-rates) they have the two-day-old 3-month Term SOFR as the last entry in the box that is bottom right: Sept 17 4.81963%.
cme.com will provide an up to date 3 month SOFR rate but you have to create a login and at least for me, the site seems difficult to load…. So the easiest way to get the up to date number is putting CNBC on for a few moments and waiting for the 3 month SOFR rate to show up in their constantly changing right hand column of stats. It will show at the bottom of the column showing Treasury rates beginning with the 2 year treasury rate…. It will repeat when the next column of stats shows up as well..
The NY Fed shows it dropped .51 between 9/18 and 9/19 to 4.82
Not .50 — interesting.
https://www.newyorkfed.org/markets/reference-rates/sofr
Seeking alpha pros and cons of subscribing to this, and secondly pricing or deals anyone is aware of. I believe they’re currently quoting 239 dollars a year, but I believe I’ve seen it more expensive and on occasion a better deal?
My thoughts on this site, is I do enjoy it and get a lot out of it, I know it’s often inaccurate and I also know I can find the same information other places. But I do find myself often going there because it seems to be very quick and convenient and have much of the information that I’m looking for. thoughts? thanks.
I hate to confess this in public – but I subscribe. I own variable divvy stocks and foreign stocks that pay once or twice a year. Reported yields are often incorrect and xD’s suspect. I use the divvy charts a lot. I like the data. I have sub-portfolios grouped by industry with my own criteria.
The feature articles are often puffery, excessively wordy, frequently inaccurate usually by omission, and often repetitive. (You can read just so many articles recommending O and VICI from The Buy Buy REIT Guy. Or articles from a pumper who looked into his morning bowl of Cheerios and saw a REIT ticker symbol he liked. ) Nobody admits mistakes. So I find the comments valuable for pointing out errors and suggesting alternative investments. Actually, I often start with the comments. I have gotten 2 or 3 home runs from comments.
They cover odd small stocks, ok, as long as you understand its just a viewpoint and a starter for your own research. The back and forth in the articles and comments is useful for sorting out the pro’s and con’s of new and esoteric ETFs (like hedged, enhanced and option products) without having to click from page to page on sponsor websites.
Promotions show up Black Friday to Christmas. My first year promo rate was ~40. FWIW I have no idea how accurate this is — but one site says there is a $25 off (the 239) September Sale going on and says rates are going up to $299 / year on October 1. Unverified, but its on the internet so hey it must be true. Be sure you are on the real site before you plug in your card info. JMO. DYODD.
Subscribing to SA too, and indeed the subscription rate goes up to $299 p.a.
I’ve considering subscribing too, but haven’t yet. I often find the articles useful for orienting myself about a stock that I learn about elsewhere. Usually there will be at least one article in the archives that gives an overview. I also find them useful for ideas in areas that I’m unfamiliar with. Obviously one shouldn’t just buy every stock that gets a glowing review, but I think there is a lot of information there that is not available elsewhere.
While my previous approach of using “Reader Mode” within the browser no longer gives access to articles, it’s worth noting that if you prepend “http://archive.is/” to the article URL it will usually still let you read individual articles. For example, https://seekingalpha.com/article/4721992-priority-income-fund-attractively-priced-l-series-from-this-cef becomes http://archive.is/https://seekingalpha.com/article/4721992-priority-income-fund-attractively-priced-l-series-from-this-cef. Some articles that have not yet been archived may require an extra step. I presume other similar archive sites have access too.
But if you want access to the comments as well, you probably have to sign up. $214 is the best annual rate that I’m seeing right now ($239 – $25). This seems to be the standard offer on all the marketing affiliates. If I was to sign up, is there a particular one that anyone thinks is worth supporting?
I think they just started in the last day or two going to “Nothings Free”…you can’t access anything without owning the service…over time I ended up reading the comments more than the articles…I do find the site useful but don’t care for the hall monitors….and some of the writers are arrogant…I won’t subscribe…
Note only are they arrogant but some are dishonest as well.
Are there any sites around that are somewhat like SA without a fee?
agree, generally, to all you say here as well…not interested in becoming a subscriber in SA.
I read some of their free articles and the comments section. Never gave them a dime and don’t plan to. Money tends to compromise objectivity.
First I want to Thank all for info and comments..
I did remember two other things I like about SEEKING ALPHA
one is I do like the comments after the article as much as the article, I remembered this because you guys reminded me… lol
But also I like their Quarterly report transcripts, haven’t seen those in other places
Can anyone explain why BBB-rated OAK-A and-B are trading in the high 6% range while other BBBs trade mid 5%?
Is it BN ownership? Delisting risk?
could be…appears they have found the BN owned BPYPO, BPYPP, BPYPM & BPYPN today…
I own OAK PA as well also and was previous Oaktree common stock owner.
Big fan of Howard Marks.
Everyone is looking for yield and I expect this one to get to par soon.
They also may call this one to avoid SEC disclosure requirements.
NYCB-A up over 4% so far today to $21.67. Looking good and still paying over 7%, non-cumulative. Floats but not until 3/27.
For those with a slightly higher risk appetite, I own the CODI-B with a qualified 8% (effective) dividend at the moment… Note – they have an ATM on these so they can sell into the market which may be why these haven’t re-rated higher with everything else. CODI is sort of like a public private equity firm with a decent/OK track record. $1.6 billion market cap.
Compass Diversified Holdings, 7.875% Series B Fixed-to-Floating Rate Cumulative Preferred Shares, liquidation preference $25 per share, redeemable at the issuer’s option on or after 4/30/2028 at $25 per share plus accrued and unpaid dividends, and with no stated maturity.
Cumulative distributions of 7.875% per annum ($1.96875 per annum or $0.4921875 per quarter) will be paid quarterly on 1/30, 4/30, 7/30, & 10/30 to holders of record on the record date that will be 1/15, 4/15, 7/15 & 10/15 respectively (NOTE: the ex-dividend date is one business day prior to the record date). From and including 4/30/2028, holders of the shares will be entitled to receive cumulative cash distributions at a floating rate equal to three-month LIBOR plus a spread of 4.985%.
Not a recommendation but trying to throw out ideas that might make sense for research for those looking for new ideas. The CODI-C has the same rate 7.875 which does not float but is callable 1/25… I own some of this as well.
Z I have owned in the past. Is a decent company, but I think the people in charge as looking out more for themselves. I may be completely wrong on the list of companies they own or have owned but some were from this area. Thrush performance mufflers, camelback, a baby stroller company I can’t remember the name immediately.
One of their worst investments was an office furniture company and I think a safe company. Again I could be totally wrong on this list.
I know they owned liberty safe and sold it for like an $80m gain. The subsequent owners I believe ruined the company.
Certainly not a rated preferred but at 8% qdi risk seems good enough for me as it’s not tremendously leveraged from what I can tell and it doesn’t have the sudden funding risks /deposit flight risks of a higher risk small bank preferred.
Just my 2c… not for the risk averse but I am generally straddling low investment grade stuff or stuff that’s not rated but I’d assume would be just shy of investment grade if rated, although I am not a fan of higher rate small bank preferreds. I know many here are more conservative.
Z thanks for bringing this back to my attention. The ATM is not a problem if they need the money for a good investment. A lot of companies do that. One of the few ways for a small investor to participate in a P.E without having to show you meet a net worth of several millions.
regarding this statement
Note – they have an ATM on these so they can sell into the market which may be why these haven’t re-rated higher with everything else
to say the least …the codi-b/pff pair has plummeted from over 2 sigma rich in october 2023 to now 3 near 3 sigma cheap (3yr horizon).. the pair is still a long way from low set in october 2021.. a more fair comparison may be the codi-b/sjnk pair (given 4\/2028 reset) which indicates the pair is trading near 1.5 sigma cheap…will be monitoring for more weakness
the shorties have borrowed my CIO-pfA shares now which will be paying me 9.25%.. can’t imagine what they are charging them, wow… as I noted the CHS-m shorts closed that one, CIO goes XD in Oct, .4141..hmm.. I might ‘make’ $25 on my ‘loaned’ shares in Sept..wow. Maybe I can go to Wendy’s on that or something. lol. idk, when I look at CIO I am good on the pfds..oh well. takes a village to make a market…Bea
Bea, you do have the .10 common divy to cushion the preferred and it has been announced. But this REIT doesn’t seem as good a shape as your other pick of CTO and it’s preferred.
I don’t buy anything unless I do a deep financial dive, yes CIO is office and risky but not HPP that’s for sure.
I did sell 1/4 of my CTO-a for a $2 gain in my Roth which is a 1wk flip wow. Kept the shares in my taxable as w Martin G I have too much short term gain and income this year in taxable and will hold, see what the 2025 brings.
Office attendance trends continue to improve even Amazon made peeps go to 5 days. We’ll see.
Bea, always enjoy your insight on investments. Your nimble and quick on finding the hidden nuts in the fall leaves and knowing when to move on.
The borrow rate today today on IBKR is 21%
Like others here, I received a note from Fidelity that Entergy Texas recalled its ETI-p preferred yesterday. I haven’t seen the announcement and can’t find it on their website. Anyone seen the company announcement?
Fidelity says it’s a 1000 bond, Par value $10 which is wrong. ETI-P is still trading below $25 even though it’ll have a $0.37 divi coming up Oct 3rd. Strange.
Please post the company release if you’ve seen it. I see the issue on Edgar but it doesn’t pull any filings for some reason
on quantumQUANTUMONLINE.COM SECURITY DESCRIPTION: Energy Transfer L.P. formerly Crestwood Equity Partners LP, 9.25% Cumulative Preferred Units, not redeemable at the issuer’s option at any time, and with no stated maturity.
Arnold,
This is a different issue, it’s Entergy Texas not Crestwood. ETI-P or ETI- not ET.
This a $25 issue (it’s on Quantumonline) and was I pointing out the error in Fidelity’s notification that it was a $10 par issue.
Here’s the quarterly dividend declaration which was announced today – if they are calling it, very odd that they didn’t mention it.
https://www.prnewswire.com/news-releases/entergy-texas-declares-quarterly-dividend-on-preferred-stock-302253494.html
I would call Fidelity
Not satisfied, then call Entergy
Obviously a lot of news out there regarding the first Fed rate cut in four years. What does it mean for stocks? That depends; will the cut (and presumably more) lead to more economic activity and growth, or is the cut a precursor to tougher times ahead?
Goldman Sachs has a great chart that shows what happens after first rate cut; if the economy avoids recession in next 12 months stocks have historically gone up about 15%, but if the economy enters recession in next 12 months stocks have gone down by 10%.
Since the stock market is rallying to new highs, Mr. Market is forecasting no recession in the next 12 months. This is the current consensus view.
If we don’t have a recession then rate cuts aren’t good for Inflation. If we keep printing money at the current pace. But I haven’t been good at predicting the future, better to stay nimble and react to the present.
I love charts…. you can make a chart tell you anything…. Translating GS’ analysis, after a first rate cut, stocks go up unless they go down.. Then they go down.
Chris the more the market goes up, the more it feels like lets get this party started. I can’t complain about my accounts being at new all time highs, but I feel like Eeyore in Winnie the Pooh. Is this 1999 or 2003 ?
The market reached new all time high in early 2000 then March to April it lost 10% by 2002 Nasdaq lost 80% of its value. This after Fed credit tightening. trying to cool the economy and inflation. Then with Greenspan easing credit it rose 50% in 2003
No idea what is going to happen next. But if the Fed in raising rates above 5%% allowed them to reload with more ammunition to then allow them room to lower rates without causing inflation if the economy falls into a recession then we could be looking at new all time highs.
But after the party expect another hangover as the routine gets repeated.
With my luck, I wouldn’t have any luck at all. I entered the market mid to late 2000 thinking it was going to recover and I bailed after losing money. I set out 2003 to 2012 in bond funds nursing my wounds so I missed the recovery but I also missed the Great Recession. Been some ups and downs the last 12yrs but mostly up. What happens next who knows?
But I come here with my morning coffee to read what’s happening first thing in the morning.
From EIX Investor relations in reply to my email regarding SCE-H current float rate:
Investor Relations
Hello, Pete,
The current rate is 8.19825%. The company has not announced a redemption of this series.
Yesterday I borrowed until Dec ’29 (5 years, 3 mos) using an SPX index options box. Rate is 3.77.
“
Can you explain how you did that? Did you sell a call or put or something?
With implied recession with the 50 pt rate decrease, treasury rates are up.
The 20 yr ETF TLT price dropped 1.24%. Not exactly what everyone was looking for.
No decrease in mortgage rates– no joy in Mudville, I guess.
JMHO – If the Fed needs to cut by 50 basis points, which it did, that means some or all of the following are true:
They are way behind the real economy (i.e something is really wrong)
They are just being political, with the impending election
They didn’t know what they were doing when they raised rates this far
They don’t know what they’re doing now
All of the above
Good comment I think everything is rigged. Don’t believe anything the government reports.
“They are way behind the real economy”
Cutting by an extra 25 bps implies they’re only a little behind the curve. It’s the smallest increment over the minimum cut size. They waited until they could see the “whites of their eyes” with regards to inflation getting tamed.
Yes, there is a downside to lower interest rates. Kiss the days of 5% CD’s goodbye plus prepare to have some issues called when the issuer can get lower rates. We went through this bigly back in the ZIRP days and it was NOT pretty. Your issue got called and replaced by one with a 2% to 4% lower coupon. We are not there yet, but the trend is clearly in that direction. The other challenge is that we have to start considering yield to call, whereas we could mostly ignore that when short term rates went to 5%+. In the prime “call everything” time period I used to post lists of issues at the greatest risk of principal loss if they were called. Time to revive the list with the hope that it MIGHT prevent some III’ers from suffering a capital loss.
Here are the 28 issues most at risk of loss if they are called. Turns out that all of them are immediately callable, which typically means posting a 30 day notice, but you have to check the prospectus individually to be sure. 25 of them are preferreds and three of them are Trust Babys. I do an automatic calculation of what percentage loss would be suffered if an issue was called. This is NOT a precise calculation because it does not include ex-dividend status. So it only a rough guideline. I also calculate the ratio of today’s closing price divided by the call price.
The recommendation is that you make sure you understand WHY any issue you own will NOT be called, otherwise you might be surprised with a capital loss.
Data is in a CSV format:
Ticker, type of payment, coupon yield, ratio of 9/18/24 close to call price, % at risk if called, comment
CHSCP,Fixed,8%,1.195,18.8%,Callable 7/23 but farmers don’t want it called
C-N,FixFloat,12.1%,1.194,18.4%,In the past Citi said they would not call this
CNTHP,Fixed,6.6%,1.107,7.3%,Immediately callable
CHSCO,Fixed,7.9%,1.072,6.6%,Callable 9/23 but farmers don’t want it called
GSL-B,Fixed,8.8%,1.072,6.4%,Immediately callable
CMRE-D,Fixed,8.8%,1.07,6.3%,Immediately callable
CMRE-C,Fixed,8.5%,1.064,5.7%,Immediately callable
DSX-B,Fixed,8.9%,1.064,5.7%,Immediately callable
JBK,Fixed,6.3%,1.06,5.4%,Underlying GS 38143VAA7 has make whole and interest deferral
IIPR-A,Fixed,9%,1.055,4.7%,Immediately callable
AHL-C,FixFloat,9.8%,1.047,3.8%,Immediately callable
CMRE-B,Fixed,7.6%,1.045,3.8%,Immediately callable
DDT,Fixed,7.5%,1.044,3.7%,Immediately callable
ZIONO,FixFloat,10%,1.046,3.7%,Immediately callable
CNLPL,Fixed,6.5%,1.073,3.1%,Immediately callable
SB-D,Fixed,8%,1.035,2.8%,Immediately callable
DLNG-B,Fixed,8.8%,1.034,2.7%,Immediately callable
TRTN-A,Fixed,8.5%,1.032,2.5%,Immediately callable
SB-C,Fixed,8%,1.031,2.4%,Immediately callable
EFC-E,FixFloat,11.5%,1.033,2.3%,Immediately callable
AGNCN,FixFloat,10.9%,1.032,2.3%,Immediately callable
TECTP,FixFloat,12.6%,1.031,2%,Immediately callable
SNV-E,Reset,8.4%,1.027,2%,Immediately callable
GAM-B,Fixed,6%,1.024,1.9%,Immediately callable
MS-E,FixFloat,7.3%,1.024,1.8%,Immediately callable
JPM-C,Fixed,6%,1.022,1.7%,Immediately callable
GMRE-A,Fixed,7.5%,1.023,1.7%,Immediately callable
SEAL-A,Fixed,9%,1.024,1.7%,Immediately callable
After an FOMC meeting I like to wait a day or three to get the market’s real reaction, but today was just weird. The post-meeting trends reversed after Powell’s presser began.
SPX: Made an intraday all-time high for the second day in a row, then closed down 0.29%
DXY: Dropped sharply to 100.2, then rallied to close at 100.95, +0.38%
ZB 30-year treasury futures: Closed down 0.91%. Has my attention.
TYX 30-year yield index: Closed at 4.008%, +1.39%. The recent low was 3.906%.
Where to from here?
“After an FOMC meeting I like to wait a day or three to get the market’s real reaction”
Good idea!
In a note from Cumberland Advisors:
“The US Treasury yield curve has flattened out at under a 4% rate structure when we look at maturities from medium to longer term. This makes some strategic sense. If the growth rate for America is about 2% and the inflation rate is about 2%, then the nominal rate of GDP growth is about 4%. Longer-term studies show that the 5-to-10 years Treasury note maturity range tends to align with the growth rate of nominal GDP. So, we’re estimating a 4% nominal growth rate and a 4 % Treasury note yield. History suggests that these are close estimates.”
https://www.cumber.com/market-commentary/3q-cio-overview
Strolling down the preferred aisle looking for something on sale! I noticed several recent III posts along the lines of “nothing to buy, bargains are gone, etc” so I decided to take a look. The preferred ETF, PFF, had a short-term bottom on August 5th. It is up 6.5% since then which is very strong for that short a period. Going to the moon Alice!
Instead of using price like Mjtroll, I used current yield and compared how the yield changed from 8/5/24 through today 9/17/24. The PFF yield went down from 6.18% to 5.8% for a drop of -0.28%. The UST10 year yield went down from 3.785% to 3.642% for a drop of -0.14%. In a perfect world, we would expect high quality, low default risk preferreds to have yield drops in that range. For example, too big to fail bank JPM-C fell by -0.16%. Issues that fell by more than that might be explained by investors perceiving the default risk to be decreasing. On the opposite side, if the perceived default risk has not changed, and the yield has not dropped, it might be an opportunity. The assumption being that the price will increase, the yield will drop and preferred happiness will ensue.
For this study, I considered preferreds only, did not include babys/terms, excluded convertibles, excluded non dividend payers, excluded ones where the current price/par was less than 0.5 and only included ones with coupon yields <=6.0%.
The usual caveats apply and you MUST do more due diligence before making any investment decision. I do see some issues that definitely have one-off conditions that might explain their change in yield. I suggest using the list both to consider new buys and potential sells. If the yield of an issue has dropped dramatically, it might have achieved most of the capital gain that can be expected. Several moving parts here.
Format is CSV with: ticker, type of interest payment, coupon yield, 8/5 yield, 9/17 yield, yield change
UST10,,0%,3.79%,3.64%,-0.14%
PFF,Var,0%,6.18%,5.9%,-0.28%
HAWLL,Fixed,4.65%,5.81%,6.41%,0.6%
WVVIP,Fixed,5.3%,5.57%,5.76%,0.19%
CMS-B,Fixed,4.5%,5.35%,5.53%,0.18%
WELPM,Fixed,6%,5.71%,5.83%,0.11%
SCE-J,FixFloat,5.38%,5.69%,5.71%,0.02%
ACP-A,Fixed,5.25%,5.4%,5.38%,-0.02%
CNPWP,Fixed,4.08%,6%,5.96%,-0.04%
PSBYP,Fixed,5.2%,9.92%,9.85%,-0.07%
PSA-H,Fixed,5.6%,5.62%,5.55%,-0.07%
MBINO,FixFloat,6%,6.07%,5.99%,-0.08%
SCHW-D,Fixed,5.95%,5.9%,5.82%,-0.08%
HIG-G,Fixed,6%,6.03%,5.95%,-0.08%
EBBNF,Reset,5.86%,6.96%,6.87%,-0.08%
DUK-A,Fixed,5.75%,5.73%,5.64%,-0.1%
CNOBP,Reset,5.25%,6.4%,6.3%,-0.1%
BAC-K,Fixed,5.88%,5.91%,5.8%,-0.11%
DLR-K,Fixed,5.85%,5.95%,5.84%,-0.12%
WFC-Y,Fixed,5.63%,5.86%,5.74%,-0.12%
STT-G,FixFloat,5.35%,5.5%,5.37%,-0.13%
INN-F,Fixed,5.88%,7.16%,7.03%,-0.13%
ANG-A,Reset,5.95%,6.11%,5.97%,-0.13%
MET-E,Fixed,5.63%,5.79%,5.65%,-0.15%
AILLO,Fixed,4.25%,6.13%,5.99%,-0.15%
BAC-B,Fixed,6%,6.05%,5.89%,-0.15%
O-,Fixed,6%,6.17%,6.01%,-0.16%
JPM-C,Fixed,6%,6%,5.83%,-0.16%
JPM-D,Fixed,5.75%,5.82%,5.65%,-0.17%
BOH-B,Fixed,4.38%,4.31%,4.14%,-0.17%
AGM-F,Fixed,5.25%,6.1%,5.93%,-0.17%
GAM-B,Fixed,5.95%,5.95%,5.78%,-0.17%
AGM-G,Fixed,4.88%,5.97%,5.79%,-0.18%
UEPEO,Fixed,4.5%,6.15%,5.96%,-0.19%
AGM-E,Fixed,5.75%,6.16%,5.97%,-0.19%
SCE-K,FixFloat,5.45%,5.72%,5.51%,-0.21%
WELPP,Fixed,3.6%,5.63%,5.41%,-0.21%
FCNCP,Fixed,5.38%,6.03%,5.79%,-0.24%
MTB-H,FixFloat,5.63%,5.8%,5.55%,-0.24%
AGM-D,Fixed,5.7%,6.16%,5.92%,-0.25%
GUT-C,Fixed,5.38%,5.63%,5.39%,-0.25%
ACGLO,Fixed,5.45%,5.97%,5.72%,-0.25%
RNR-G,Fixed,4.2%,5.89%,5.64%,-0.25%
OPP-B,Fixed,4.75%,5.75%,5.5%,-0.26%
CNLTN,Fixed,4%,6.08%,5.81%,-0.27%
HBANM,Fixed,5.7%,6.04%,5.77%,-0.27%
BAC-M,Fixed,5.38%,5.73%,5.46%,-0.27%
PCG-A,Fixed,6%,6.23%,5.96%,-0.27%
CNLTP,Fixed,4.4%,6.2%,5.92%,-0.28%
PSA-F,Fixed,5.15%,5.46%,5.18%,-0.28%
ACGLN,Fixed,4.55%,5.87%,5.59%,-0.28%
USB-P,Fixed,5.5%,5.76%,5.47%,-0.29%
NCV-A,Fixed,5.63%,6.4%,6.1%,-0.29%
VOYA-B,Reset,5.35%,5.5%,5.2%,-0.3%
PSA-I,Fixed,4.88%,5.52%,5.22%,-0.3%
REXR-C,Fixed,5.63%,6.63%,6.32%,-0.31%
DCOMP,Fixed,5.5%,7.23%,6.92%,-0.31%
NCZ-A,Fixed,5.5%,6.59%,6.28%,-0.31%
RNR-F,Fixed,5.75%,6.1%,5.78%,-0.32%
CMS-C,Fixed,4.2%,5.58%,5.26%,-0.32%
SCE-L,Fixed,5%,6.4%,6.08%,-0.32%
ATH-D,Fixed,4.88%,6.65%,6.33%,-0.32%
PSA-G,Fixed,5.05%,5.49%,5.17%,-0.33%
NSA-A,Fixed,6%,6.78%,6.44%,-0.34%
CNLPM,Fixed,4.12%,6.31%,5.97%,-0.34%
TRTN-E,Fixed,5.75%,6.93%,6.58%,-0.35%
GGT-G,Fixed,5.13%,5.68%,5.33%,-0.35%
T-C,Fixed,4.75%,5.9%,5.55%,-0.35%
OZKAP,Fixed,4.63%,6.78%,6.43%,-0.35%
SIGIP,Fixed,4.6%,6.29%,5.93%,-0.36%
BAC-N,Fixed,5%,5.65%,5.28%,-0.36%
T-A,Fixed,5%,5.95%,5.58%,-0.37%
AMH-G,Fixed,5.88%,6.37%,5.99%,-0.37%
SR-A,Fixed,5.9%,6.28%,5.9%,-0.38%
MBINN,Fixed,6%,7.16%,6.78%,-0.38%
GRBK-A,Fixed,5.75%,6.48%,6.09%,-0.38%
SCE-G,Fixed,5.1%,6.37%,5.98%,-0.39%
BHFAN,Fixed,5.38%,7.08%,6.69%,-0.39%
REXR-B,Fixed,5.88%,6.74%,6.34%,-0.39%
BAC-O,Fixed,4.38%,5.63%,5.23%,-0.4%
PSA-J,Fixed,4.7%,5.57%,5.16%,-0.4%
PSA-O,Fixed,3.9%,5.6%,5.19%,-0.41%
PSA-N,Fixed,3.88%,5.54%,5.13%,-0.41%
LANDP,Fixed,6%,7.17%,6.76%,-0.41%
MS-K,FixFloat,5.85%,6.06%,5.65%,-0.41%
PSA-Q,Fixed,3.95%,5.57%,5.15%,-0.41%
JPM-K,Fixed,4.55%,5.45%,5.03%,-0.42%
NXDT-A,Fixed,5.5%,9.38%,8.96%,-0.42%
SF-D,Fixed,4.5%,5.95%,5.53%,-0.42%
WFC-A,Fixed,4.7%,5.77%,5.34%,-0.42%
RIV-A,Fixed,6%,6.54%,6.11%,-0.42%
GDV-H,Fixed,5.38%,5.81%,5.38%,-0.43%
EQH-A,Fixed,5.25%,6%,5.58%,-0.43%
FITBP,Fixed,6%,6.36%,5.93%,-0.43%
BCV-A,Fixed,5.38%,5.94%,5.51%,-0.43%
KEY-J,Fixed,5.65%,6.63%,6.2%,-0.43%
PSA-K,Fixed,4.75%,5.61%,5.18%,-0.43%
USB-Q,Fixed,3.75%,5.59%,5.16%,-0.43%
OPP-A,Fixed,4.38%,5.87%,5.44%,-0.44%
COF-I,Fixed,5%,6.29%,5.85%,-0.44%
JPM-L,Fixed,4.63%,5.47%,5.03%,-0.44%
BIP-A,Fixed,5.13%,6.65%,6.21%,-0.45%
ADC-A,Fixed,4.25%,5.72%,5.27%,-0.45%
PSA-S,Fixed,4.1%,5.57%,5.12%,-0.46%
COF-J,Fixed,4.8%,6.33%,5.87%,-0.46%
PSA-M,Fixed,4.13%,5.51%,5.04%,-0.46%
WFC-C,Fixed,4.38%,5.7%,5.23%,-0.46%
PSA-L,Fixed,4.63%,5.58%,5.11%,-0.47%
LANDO,Fixed,6%,7.2%,6.73%,-0.47%
FULTP,Fixed,5.13%,7.19%,6.72%,-0.47%
FCNCO,Fixed,5.63%,6.25%,5.78%,-0.47%
PSA-R,Fixed,4%,5.56%,5.08%,-0.47%
SCHW-J,Fixed,4.45%,5.44%,4.96%,-0.48%
JPM-M,Fixed,4.2%,5.4%,4.93%,-0.48%
MS-L,Fixed,4.88%,5.5%,5.02%,-0.48%
PSA-P,Fixed,4%,5.56%,5.07%,-0.48%
GOODO,Fixed,6%,7.49%,7%,-0.48%
TFC-O,Fixed,5.25%,5.83%,5.34%,-0.49%
WFC-Z,Fixed,4.75%,5.85%,5.37%,-0.49%
ATH-B,Fixed,5.63%,6.72%,6.23%,-0.49%
FRT-C,Fixed,5%,5.96%,5.48%,-0.49%
BAC-P,Fixed,4.13%,5.64%,5.14%,-0.49%
ETI-,Fixed,5.38%,5.92%,5.42%,-0.5%
SHO-I,Fixed,5.7%,7.18%,6.68%,-0.5%
COF-K,Fixed,4.63%,6.12%,5.62%,-0.5%
ECF-A,Fixed,5.25%,5.94%,5.43%,-0.5%
JPM-J,Fixed,4.75%,5.49%,4.99%,-0.51%
WAL-A,Fixed,4.25%,5.57%,5.06%,-0.51%
COF-L,Fixed,4.38%,6.07%,5.56%,-0.51%
EQH-C,Fixed,4.3%,5.85%,5.33%,-0.52%
BEP-A,Fixed,5.25%,6.81%,6.29%,-0.52%
MET-F,Fixed,4.75%,5.73%,5.2%,-0.53%
AXS-E,Fixed,5.5%,6.53%,5.99%,-0.54%
TFC-R,Fixed,4.75%,5.87%,5.34%,-0.54%
PCG-E,Fixed,5%,6.75%,6.2%,-0.54%
EFSCP,Fixed,5%,6.64%,6.1%,-0.55%
WFC-D,Fixed,4.25%,5.74%,5.19%,-0.55%
REGCO,Fixed,5.88%,6.72%,6.17%,-0.55%
RF-E,Fixed,4.45%,6.24%,5.7%,-0.55%
PCG-D,Fixed,5%,6.68%,6.13%,-0.56%
TCBIO,Fixed,5.75%,7.18%,6.62%,-0.56%
DLR-J,Fixed,5.25%,6.03%,5.47%,-0.56%
NTRSO,Fixed,4.7%,5.72%,5.15%,-0.57%
GNT-A,Fixed,5.2%,6%,5.42%,-0.58%
KIM-L,Fixed,5.13%,5.99%,5.41%,-0.58%
RF-C,FixFloat,5.7%,6.37%,5.79%,-0.59%
DLR-L,Fixed,5.2%,6%,5.42%,-0.59%
WBS-F,Fixed,5.25%,6.59%,5.99%,-0.59%
AHL-E,Fixed,5.63%,7.15%,6.56%,-0.59%
COF-N,Fixed,4.25%,6.2%,5.6%,-0.6%
USB-R,Fixed,4%,5.62%,5.02%,-0.6%
KEY-K,Fixed,5.63%,6.71%,6.11%,-0.6%
BHFAM,Fixed,4.63%,6.99%,6.39%,-0.6%
BAC-S,Fixed,4.75%,5.78%,5.18%,-0.6%
AHL-D,Fixed,5.63%,7.08%,6.48%,-0.6%
BAC-Q,Fixed,4.25%,5.77%,5.16%,-0.6%
USB-S,Fixed,4.5%,5.63%,5.02%,-0.61%
BPYPN,Fixed,5.75%,11.65%,11.04%,-0.61%
BNJ,Fixed,4.5%,7%,6.37%,-0.63%
CTA-A,Fixed,3.5%,6.3%,5.65%,-0.66%
ALL-H,Fixed,5.1%,5.85%,5.19%,-0.66%
FITBO,Fixed,4.95%,6.09%,5.43%,-0.66%
KIM-M,Fixed,5.25%,5.97%,5.31%,-0.66%
CTA-B,Fixed,4.5%,6.49%,5.82%,-0.67%
PCG-H,Fixed,4.5%,6.62%,5.95%,-0.67%
GDV-K,Fixed,4.25%,5.73%,5.04%,-0.69%
HBANP,Fixed,4.5%,6.27%,5.57%,-0.7%
GAB-K,Fixed,5%,5.89%,5.19%,-0.7%
HFRO-A,Fixed,5.38%,7.29%,6.58%,-0.7%
ASB-F,Fixed,5.63%,7.03%,6.31%,-0.73%
MS-O,Fixed,4.25%,5.73%,5%,-0.73%
SYF-A,Fixed,5.63%,7.39%,6.66%,-0.73%
ALL-I,Fixed,4.75%,5.69%,4.95%,-0.73%
GAB-G,Fixed,5%,5.92%,5.18%,-0.74%
GAB-H,Fixed,5%,5.93%,5.18%,-0.74%
BIPI,Fixed,5.13%,7.21%,6.46%,-0.75%
EPR-G,Fixed,5.75%,7.06%,6.3%,-0.76%
GGN-B,Fixed,5%,5.97%,5.2%,-0.77%
CFR-B,Fixed,4.45%,5.95%,5.17%,-0.78%
BWBBP,Fixed,5.88%,7.98%,7.14%,-0.84%
CFG-E,Fixed,5%,6.28%,5.44%,-0.84%
BEPI,Fixed,4.88%,7.34%,6.49%,-0.85%
PEB-H,Fixed,5.7%,7.97%,7.11%,-0.86%
ASB-E,Fixed,5.88%,7.13%,6.26%,-0.86%
BIP-B,Fixed,5%,7.1%,6.23%,-0.87%
CADE-A,Fixed,5.5%,7.04%,6.14%,-0.9%
BEPH,Fixed,4.63%,7.36%,6.42%,-0.93%
FHN-F,Fixed,4.7%,6.7%,5.77%,-0.94%
TDS-V,Fixed,6%,8.79%,7.79%,-1%
HPP-C,Fixed,4.75%,9.69%,8.69%,-1.01%
PSEC-A,Fixed,5.35%,7.7%,6.69%,-1.01%
BFS-E,Fixed,6%,7.47%,6.42%,-1.05%
WAFDP,Fixed,4.88%,7.72%,6.51%,-1.21%
VNO-N,Fixed,5.25%,8.51%,7.24%,-1.27%
VNO-M,Fixed,5.25%,8.6%,7.28%,-1.31%
VNO-L,Fixed,5.4%,8.51%,7.12%,-1.4%
VNO-O,Fixed,4.45%,8.36%,6.82%,-1.54%
Another extremely helpful review for which many are in your debt.Many thanks sc
Looking at that list I think I am making the correct decision to just buy UTE QDI IG preferred paying approx 6% well under par. Trying to shoot for anything more means insurance/banks, damaged goods like HE/PCG, more REITS, or somewhat questionable choices you have to keep a closer eye on.
I have also noticed that higher IG have really done well. PSA preferred as an example. It was nice buying those around 6.5% for a while there.
Also buying BAC-L or WFC-L might be a good play before they go back up higher.
Thanks for the data. The only trend that stands out for me is that for a given issuer like JPM or BAC, the decrease in rates is inversely related to the coupon rate, i.e. the lower the coupon relatively, the greater the change. Just a ceiling effect of callability? After a rough review, I couldn’t find much of a correlation between credit rating and change in yield. I was expecting to find that the lesser credits had more of a move but I can’t back that up with your data.
Potter, I agree with you that some of these are being priced on their yield to call. It appears we are getting back into the regime where more issues will be called, just like we had back in 2020 and 2021 before all rates shot up. Recall that in the past I used to post “Dollars at risk” for issues that would lose money if they were called on their first call date. Now some issues are past their first call date and are at risk of principal loss if they are called. In hindsight, I should have included that field in what I showed. I have the data and it would not have taken any extra effort to include it. And it would be very pertinent for some issues.
for sure Tex ; I check out any issue on Quantum and run YTM calculation if it’s
trading above par
This ETF tracks an Index; it rebalances it’s portfolio in order to do this ; the CY
at 6.08% is not competitive IMHO ; I would never buy this fund other than for a short term gain opportunity; I own PFFA for all the reasons I don’t PFF
NYCB upgraded to market perform by Raymond James, up 4.6% ( SA article today )