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.
IF YOU REALLY HATE SOMEONE:
Gift them some defaulted preferred shares.
This situation happened to me with Vanguard energy and I was thinking about gifting the shares to an enemy as a show of “bad will”
https://www.latimes.com/archives/la-xpm-2002-apr-07-fi-perfin7-story.html
You can get hit with similar problems with some types of employee stock options.
Recipients gets taxed on phantom gains, even though they never received any money. We see these in silicon valley fairly regularly (I personally know folks who worked at about a dozen companies who got hit with these). One of my sons took a 7 figure hit from one. The “good news” is that he has enough capital loss carryforwards to last him for a lot of years….
CIM … re Reverse Split …. any thoughts on this company ( Mgt Finance related) ….. have had ( & a few Preferreds ) for years. Just finding best to hang in or cut loose. Thanks
Jim, When has a reverse stock split been good? They had 241 million shares before the reverse, now 80 million. even after multiple cuts in the dividend on the common, can they still support a dividend? Even with the stock price being higher will they be able to issue more common? At what point do they delay payment on the preferred to conserve cash?
Lot of questions.
Jim, There has been lots of discussion on Chimera the last couple of weeks. Search the site and you should find it. May help answer your questions. Chimera just issued more debt in the form of a Senior Note paying a fixed 9%(!). You probably know they also have four preferred stocks, one of which just floated at about 11% and another due to soon. Their debt with the note and preferred stocks is now over a billion bucks and a whopper of a quarterly total dividend they have to come up with. Their website has more info on them plus their financial reports. Their quarterly income is a rollercoaster, but they always seem to scrape up the cash to pay all of the preferred stocks and some on the common. They employ lots of leverage to make their money. With the additional cost of the senior note and the floaters they are going to have to search the couch cushions hard for extra coins. I personally own the preferred that has begun floating and wonder what they are going to do with the Senior
Note proceeds. Must be a mighty interesting place to work…….
Can someone please explain to me when you can and when you cannot sell a preferred stock/baby bond after a call or partial call has been announced?
I sold TRINL in April of this year after the announcement of a partial call.
Fidelity redeemed 33 shares into my account on May 17th (Partial call date) creating a short position.
I have call and talked to several people including a manager at Fidelity and they tell me I need to buy 30 shares of TRINL to cover the short position.
I have sold preferred/baby bonds in the past after a call has been announced and never had a short position created before.
I do not know if the partial call is what creates the issue or if you should never sell any shares after an announcement of a full call or partial call.
I am just trying to understand so this does not happen in the future.
What makes matters worse is Fidelity separated 3 shares into a different lot from the 200 original shares I owned. I called Fidelity right after the partial call was announced and asked why the 3 shares were split off. I was told that the 3 shares is the number of shares from your account that is getting called early. I asked if I could sell the remaining 197 shares and not be affected by the partial call and I was told yes. On May 17th they redeemed 33 shares leaving me 30 shares short.
Thanks for any insight into this.
There was definitely something weird that happened with this call. I had 5 shares sequestered by Schwab right after the announcement, and then a couple weeks later they sequestered another 58. If fidelity did this to you and you’d already sold the rest of your shares you wouldn’t have known there would be more called. I don’t think this is a repeatable issue. I also sell things frequently after a call announcement with no issue except when it’s too close to the call for settlement.
Irish, I was in the process of moving an account to Fidelity from T Rowe and they froze all 250 shares! I figured it would be easier to just sell all and re buy but when I tried to sell they would not let me sell any.
I had this happen once before with an Eagle Point Credit preferred and since then I never try to sell a position subject to a partial call. It does sound like you did everything right by calling the broker first before selling though.If you know the date you called Fidelity and if they record their conversations you might get them to make you whole, but its not worth the hassle imo.
The price of TRINL hasn’t moved much since the partial call, so buying them back shouldn’t create a big loss. I’d do that first (especially if its in a qualified account) then try to get Fidelity to reimburse you for any loss incurred. Good luck!
The record date would be controlling
Brett, I had almost the same experience except I had 4 shares and now I am 29 short. I had 200 shares and I sold 100 on 5/7 and 96 shares on on 5/8 thinking 4 would be called per the Fidelity notification I recieved. Sales price was $25.36. On 5/17 I got my interest payment of $9.95 on the 33 shares plus the principal on 33 shares most of which I did not own. I got an email from Fidelity today saying “This notification is to inform you that an adjustment has been made to a previously communicated fixed-income redemption event.” There was no additional details and nothing new on the web site. I don’t know what’s going but I am going to let Fidelity sort it out. I find calling them not very helpful but I’ll let it stew for a week or so before I attempt to call.
it looks like they posted it wrong for a 1000.00 bond, not a $25.00 one.
In March 2024, the Company closed an underwritten public offering of $100.0 million in aggregate principal amount of 7.875% notes due 2029 (the “March 2029 Notes”) and the underwriters subsequently exercised their option to purchase an additional $15.0 million of the March 2029 Notes. The March 2029 Notes are traded on the Nasdaq Global Select Market under the trading symbol “TRINZ.” On April 16, 2024, the Company caused notice to be issued to the holders regarding the Company’s exercise of its option to redeem a portion of the issued and outstanding 2025 Notes. The Company will redeem $30.0 million in aggregate principal amount of the $182.5 million in aggregate principal amount of outstanding 2025 Notes on May 17, 2024.
Yes – there is a lot more to the story of this partial call at Fidelity. I had about 8 journal entries in my account due to this partial redemption on Friday. Fidelity first redeemed the shares at $1000 per share. Then they backed that out. Then redeemed for $25 per share for the 3 shares they broke off for the partial redemption. Then they backed that out and redeemed 33 shares causing me to be short 30. I called Fidelity on Friday, Monday, and Tuesday – talked to multiple people – supposingly two managers. Everyone said I had to repurchase 30 shares ASAP or get hit with a fee. Fidelity would not compensate for the loss of repurchasing the shares even though I called them prior to selling to make sure the 3 shares was the correct amount of shares that were to be called in the partial redemption for my account and of course Fidelity told me 3 shares were correct that I am OK selling the rest prior to the partial redemption. Trinity may have changed their mind and changed the amount of the number to be called and I sold in-between Trinity changing their minds. Who knows…. I bought 30 shares this morning. My loss was at least covered by the dividend payment recieved on Friday for the redeemed shares. Lesson learned – I guess never sell shares prior to a partial call once it has been announced.
I’d like to provide some clarity to the question of Unrelated Business Income; Line 20 Code V of the K-1; the UBTI ; I believe it only applies if there is an Entry on Line 1 ; Business Income ; and does not apply (no entry Line 20V)for K-1s for MLP Preferred Stock and Notes ; which show on Line 10 “Guaranreed Payments) I have a pretty good sample size ; and this is what I have found ;
Hi Ted,
Not sure what form you were looking at. Unless I am mistaken, last year’s k-1 (blank) looks like this:
https://www.irs.gov/pub/irs-pdf/f1065sk1.pdf
In recent years, line 10 shows
“10. Net section 1231 gain (loss)”, so its not really relevant to UBTI.
Guaranteed payments for most MLP preferreds shows up in box 4b.
“4b Guaranteed payments for capital”
Note that although most MLP preferreds fall into the guaranteed payments category, not all do. Off the top of my head, I know that 100% of the payments from ET-I are UBTI (I haven’t seen how it is reported though – I owned it for a few weeks early this year). If UBTI is a concern (for example, because an issue will be held in an IRA), it is critical to read the prospectus. They usually have a tax section that is very helpful.
So, a bit more on UBTI (because I am once again stuck in a waiting room with nothing to do but read this board).
UBTI comes in three forms: operations, recapture, and unrelated financing (I have never seen that last one, but it apparently exists).
UBTI from operations is usually in box 20V. Usually, there will also be some entry in box 1 if you are also seeing something something in 20V.
Note that if an MLP gets in serious financial trouble and doesn’t have enough earnings to pay the “guaranteed payment”, it may have to pay from operations, so you can get operational UBTI (very rare – I haven’t seen it since the financial crisis).
If you sell MLP units, you are also subject to “recapture” of essentially all the tax benefits you ever received for distributions paid for units you sold. this will be shown in a table in the sales schedule of the K-1 as an adjustment to your cost basis.
If you owned the units in a tax free account (like an IRA), that recapture is also taxed as UBTI. The sum of the “operational” UBTI and the recapture amount are what get reported in a 990T tax return (that your broker files for you) if the total UBTI for the account exceeds $1K for the year.
If they file for you, it is usually worthwhile getting the broker to share the working papers with you. They seem to rarely file 990Ts correctly. You can apply UBTI loss carryforwards, etc. to reduce current year tax, and the brokers rarely even try to do that.
Anyway, thanks for doing the digging.
Anyone know tax consequences of preferred EBBGF, is there a k-1, is this acceptable for IRA, Thanks for any help
No k-1 and have it in my 401k so no tax issues to deal with.
Depends on what broker holds your shares.
You could get dinged for non-recoverable foreign tax.
Hi Raggs,
talk to your broker.
This discussion came up before on this board (IIRC).
From that discussion, most brokers require you to fill out a form to claim benefits of the US/Canada tax treaty.
From my experience, schwab definitely requires a form and you have to refile it every few years. Its a very simple form. without the form, your divi’s get hit with withholding taxes.
To clarify my prior comment –
Divi’s by canadian payers are generally supposed to be tax free for US owners who have the shares in a retirement account (like an IRA) – but you usually have to file the form I mentioned.
Sometimes, Canadian companies (or the agents they hire to process payments) screw it up and still withhold taxes. I have had several go-arounds with companies about this problem and had to sell their shares because they couldn’t/wouldn’t get it right.
EBBGF was NOT one of those. I own it in an IRA and get divi’s without withholding.
In a taxable account, you will likely see withholding, but you can usually claim the taxes withheld on your US return . Usually pretty straightforward, but not always.
Half a Step-Up in Basis
Am I the only ignorant person to have not known anything whatsoever about this tax consequence? This may not impact many of you immediately but did you know that if you have a JOINT investment account and the joint owner dies, you are entitled to a step up in cost on your investments owned equal to half the value? Thanks to fellow III’er, Mark G, I found this out today as he privately sent this article – https://money.usnews.com/investing/term/step-up-in-basis#:~:text=In%20a%20joint%20account%2C%20half,a%20step%2Dup%20in%20basis It says, “When assets are jointly owned and one owner dies, if the other owner is the heir, they receive a half step-up in basis. In a joint account, half of the assets are deemed to be owned by each party. This is common when married people own assets together.
If a couple has a joint account and spouse A dies, half of the account deemed to belong to spouse A gets a step-up in basis. Spouse B now owns the account, 50% of which has the original cost basis and 50% of which has the stepped-up basis.”
I’m totally gob smacked that I had never heard about this at all. I’m also surprised that neither TDAmeritrade/Schwab nor Fidelity advised me of this when I informed him of my consequence. Schwab has now confirmed, and they are sending me a form they say I have to fill out, but thankfully, mechanically, they take 100% charge of the application of the step-up… It then becomes my responsibility to verify the accuracy. No word yet from Fido, but I asked them later in the day…. Who knew???????? I feel so dumb. Granted I typically have my eyes glaze over when taxes are the subject, butI usually know the basics…this one not so much. Thanks, Mark!
Thanks for the note! I will file this away as well as I was also unaware.
2WR,
I only played a tax lawyer on TV, so don’t take my $0.02.
From recent experience, it may be a good idea to have the asset in a revocable trust (or maybe an LLC) as the whole amount may get stepped up. I was told this could be any amount – great tax loophole – can’t imagine how JP Morgan and Rockefeller got this passed in 1921. We know someone who got $Ms tax-free last year. Like you, I was dumbfounded (not hard on my end).
My partners and I agreed not to tell the wives!
Rick-
Isn’t step-up a good thing? Also, Pretty sure I have heard multiple times that you don’t put an IRA, ROTH, etc in a trust, or at least there is no need since brokerages have you fill-out beneficiary forms and the taxable acct is listed as TOD.
My mortgage is set-up to automatically be assumed by one of my sons. This week I am going in to Wells Fargo, to do a TOD for my checking acct since you can’t do theirs online. An external money mkt thru Raisin.com has online set-up for beneficiaries- completed there too.
In some states, if there are no listed beneficiaries, the estate goes thru probate- often very costly several percent or a minimum.
Gary,
I’m stepping on thin knowledge ice here…
Step-up is great for the heirs. In many cases, the heir could have a huge tax bill and would be forced to sell the farm. I was being a bit of a smart-A in my response. Should there be a limit on free gains – billions? I’ll leave that for another forum.
2WR comment about a “joint account” made me think if this was a trust or LLC account, then maybe the whole account steps up for all owners/members. We saw this happen last year.
My mother passed last year, and I was the beneficiary on all her accounts, and she didn’t have property (house or cars). Since her accounts were well below any tax thresholds, we didn’t have to do any reporting or worry about gains. It was relatively easy to gain access to the accounts. I would think for most accounts, simple beneficiary designations are the best, easiest path. Having a co-owner on the main checking accounts helps the heir pay the remaining bills, too.
Agreed on the last point…Probate levels and asset classifications are different for each state. Property and cars can be classified differently than money accounts. The key is to plan and make it easy on the heirs (if they’ve been good!).
Rick-
“2WR comment about a “joint account” made me think if this was a trust or LLC account, then maybe the whole account steps up for all owners/members. We saw this happen last year.”
What happened last year?
I guess huge tax bills are possible for taxable accts and an IRA (if they took it all instead of the required 10 yrs available to take 100% fo the IRA).
There seems to be disagreement on having advantaged accts or a ROTH in a trust. A trust can be named a beneficiary – which is probably less problematic than having it IN a trust ( it might be taxed going into the trust-ughh)
Everyone need to do their own research.
I think there should be some changes in this area personally. I don’t think stocks should get a step up in basis generally speaking.
If your great great grandfather bought XOM in 1908, and it finally gets inherited by you, I don’t think you should get to claim that your basis based on the value in 2024.
Just an area where I think that both sides of the aisle could find some common ground if neither of them started from the extreme point of view.
I think stock capital gains should be indexed so that your stock basis increases with inflation because otherwise you can be taxed on gains you never actually experienced due to currency debasement.
It is a backdoor tax. The step-up basis at death is supposed adjust for that.
I am talking about the basis used if the stock is sold. If you sell it, you experience those gains. You paid nothing for it and you got a big gain when you sold it, so you owe big taxes.
Newtothis
Not looking to start an argument, but I am not sure that is very workable.
if we wanted to create “stocks” a new class of taxable assets separate from everything else, you could maybe get partway there (so we would have ordinary income, capital-based income, and stocks?). Not sure the game would be worth the candle.
Last I looked, the vast majority of securities aren’t (a) owned by individuals, and (b) of those that are, they aren’t owned in a way they would get a step up. Institutions own far more shares than individuals (and they don’t get the step up because they don’t die), and a tremendous amount of personal ownership is through vehicles like IRAs/401Ks/etc. that don’t get a step up anyway.
From what I recall from prior research (admittedly a bunch of years ago) the group of people who own vast wealth acquired through purchased securities is really not very big in the scheme of things. The biggest set of assets that are transferred with step up are small businesses.
There are some very wealthy people who benefit, but there are millions of small business owners who benefit too.
Scott, one of the justifications for long term capital gains being taxed at lower rates is to account for some of the “loss” you mention from asset values being inflated away.
Unfortunately, there is a push by some on the left in congress to limit/eliminate preferential taxation of capital gains too. it is “dressed up” as part of the tax-the-rich noise, but a lot of the middle class (small business owners, small investors, etc.) will get clobbered if capital gains get reclassified.
Just part of the ongoing “class warfare” being pushed by some politicians through “tax-the-rich” proposals that will ultimately be paid for by the middle class.
To the best of my knowledge (and its a little rusty), there is no limit on step up in basis at death – at least not yet. The Biden administration and some of the far-left in congress have been making noises about limiting/eliminating it. Similar to how they want to start taxing “holdings” rather than income (sorry – not meant to be political, just saying who is pushing what).
You see some of the big “founding family” MLPs sell the company when the founder dies. MANY millions of dollars in step up. IIRC, that is what triggered the sale of MMP last year – family got a huge step up in basis and wanted to exit.
I remember reading a tax policy paper in grad school that discussed the step-up in basis (from somewhere in the federal gov – treasury? congressional research? – can’t recall).
-Relatively few people make their “fortunes” in things with readily ascertainable values like securities (some are fabulously wealthy who do, but they are a tiny percent of the population). Most people with assets were (are) small business owners and farmers.
-for small businesses/farms/etc., step-up allows the business to just keep running without needing to try to do a current valuation for tax purposes (potentially very expensive for a modest business).
-for many of those businesses, establishing “initial basis” would also be a huge task and in many cases, impossible. Much of the original “valuation” would just be lost to time, and (by definition), the person who likely had the best knowledge just died. In addition, many of the adjustments to basis that would normally be allowed would be undocumented (small businesses and farms make lots of capital improvements, etc. that simply aren’t recorded).
I think there may be somewhat better record keeping nowadays because many small businesses have incorporated and are better at record keeping, but I think the fundamental issues still remain.
As one of my professors used to say – you don’t see a lot of people lining up to take advantage of the step up, and its pretty hard to cheat/abuse.
I understand what you are saying here. I am not for sticking a family business with a lower basis, especially if the family participated in making the business worth what it is at the time of death.
But if grandpa took some of his profits and invested them in the stock market 80 years ago, I don’t think his heirs should get those investments with a basis based on today’s price.
I hear what you are saying New. I guess we just disagree.
I think that in the scheme of things, we are talking about such a tiny sliver of the taxpayer base that is is not worth creating a whole new set of rules/regulations.
You know that as soon as we started trying to frame it, we would have to jump through “what is a stock” (and how could people avoid that definition), and some group would want to exclude a bunch of things (founder stock in a company the person created? what about founder stock given to family members that didn’t work full time in the business? stock owned by poorer people? what do we do with partnerships? etc.). It gets complicated really fast. However, there have been crazier things proposed recently – like taxing people on their wealth rather than their income (which I am not sure even fits in the 16th amendment).
Private, take a little solace in knowing know matter what ones view of taxing generational wealth is, the next generations do an excellent job of pissing it all away anyways, ha.
The issue of generational wealth transfer is not a new one, nor is it uniquely American. Sixty% of wealth transfers are lost by the second generation, and 90% by the third. Only 10% of wealth passes beyond the third generation.
https://www.kansascity.com/news/local/community/johnson-county/article280478329.html
Just speaking for me, I don’t necessarily tax wealth of any type. I am all about people getting to keep what they have. I just think that it is absurd, that a person can inherit a stock and that stock gets a basis that so vastly different than the real cost of the stock.
In the case of an inheritance, what he is calling for is essentially double taxation. You get hit with a death tax on stepped up assets, and then again with capital gains from stepping up those same assets.
Seems to me you could have one or the other, but taxing the estate at death means the basis should be stepped up to reflect those assets are post tax. You can accomplish the punitive action he wants by raising the death tax and the government gets the money sooner, which is likely why they went that route. It certainly wasn’t out of the goodness of their hearts or because they intended to put the money to good use!
One consequence of keeping the lower basis is that more assets could be transferred over and still be under the death tax exclusion, which would accomplish the opposite of what he wants until they are sold down the line, which may or may not happen. Again, the government wants your money now so that is why things are as they are. And the other perverse incentive is that the lower basis would lock up assets since the smart play would be to never sell them once you inherit them if that is at all possible. But the government wants churn.
Oh yeah, lots of folks getting hit with tax on estates over the exclusion– now over $13mm ( getting cut by half in the near future). As for the step up stuff- it has to be in a taxable account. Are huge sums kept in taxable accounts?
As for a grandpa (ma) investing at 1/20 or 1/100th of current value, wouldn’t he be happy for his progeny getting stepped-up basis for his efforts? After all, he presumably worked to earn to invest. Grandpa wasn’t one to give the gov’t money he didn’t have to. Inflation might mean he paid $10/sh, but in today’s dollars, it might easily be equal to $200-500/sh.
I believe a TOD acct would solve this stepped up basis problem
aorry could u please spell out what tod account is short for i.e. what type of account. Many thanks. sc
SC4, I think TOD stands for “Transfer on Death”. Please confirm with any broker or bank.
Thanks for clarification on Tod. Will check it out. SC
I did check and you are correct. thanks again sc
TOD is Transfer on Death; you can designate your “beneficiary” on any account you own ( retirement accounts not included nor are joint accounts; TOD supersedes any designations in a Will ; and not used for Joint Tenancy Accounts (with rights of survivor) for obvious reason ;
TOD, is transfer on death act. Upon the death of grantor/owner of acct the acct automatically transfers to the named beneficiaries, some state have other names but the results are the same., please verify.
2White; I know a little about this, and can round out the story ;this step up in basis only takes place in States with Community Laws ( 9 States ; CA is one)
and only between spouses ; a joint account with anyone else , no step-up of the entire 100% ; Community Property Laws say that any assets acquired during marriage are Community Property, regardless of who purchased them; and both spouses have an undivided interest in the entire property; ergo, 100% get stepped up basis; hope this helps ;
2WR, thanks for passing this valuable tip along. We had a case a few years back that also got the half step up in basis. Here are the details of our case:
1) Not one of the 9 community property states
2) Co-owners, NOT spouses
3) Titled “Tenants in common”
4) No “Transfer on Death” aka TOD titling
5) Assets not in a Trust of any kind nor LLC
6) One of the owners passed away
7) Other owner got 50% step up in basis,
8) Tax status independently confirmed with two different CPA’s
9) Getting a brokerage to properly report new basis to IRS when an asset is sold, good luck with that. You really want to avoid the situation when brokerage reports something and you have to tell the IRS their data is incorrect.
10) Strongly suggest you check with a CPA in YOUR state with YOUR specific situation to make sure it is handled properly. Not confident that all states, all titling, all cases will be treated the same way.
Just an FYI.
Tenants in common is more like a partnership as the ownership passes to the heir of the deceased tenant and not to the other tenant.
Tex ; sure the deceased party’s portion of the account whether a JT or Tenants in common will always get stepped up ; those are IRS Regs;
Very helpful, Tex, thanks…. I’m glad this has produced some hopefully valuable info for others. Since I’m selling my house, is there a half step-up involved as well when it comes time to figuring gain on it? I’ll probably be able to take the one time life time exemption amount which could make original cost plus capital improvements relatively meaningless, but doe this rule 1/2 step-up apply to this jointly owned asset as well? Again it never even occurred to me that this could be a possibility… Wishful thinking?
2WR, would check with a local TN (Maybe in Knoxville, instead of Kingston) CPA or two, you can use the one half step up in basis on a house sale. We had that occur on a house “right down the street” from you and used the half step up on the reportable gain.
This whole “step up” discussion is making me nervous.
I know I am already worth more dead than alive to my wife, but if she would also get a big tax benefit too?
Good thing she doesn’t read this board or I might just have an “unfortunate accident”.
Maybe this is why Grid doesn’t make an honest woman of his girlfriend – he doesn’t want to create bad incentives.
Also applies to residence. If not selling right-away – document value at time of joint owner’s passing – maybe via an appraisal or equivalent.
Ooops. hadn’t read your post when replying to Tex… Thanks, Alpha, but I AM selling right away… Why not then?
If you are selling right-away you don’t need an apprasial as the sale price evidenced on the closing statement will document the value on which the step-up will be based.
Yes, once I started thinking instead of writing, I figured that out…lol but thanks for confirming….. Coming from you locks me in on the idea…. Now find me a buyer, ok? so I can move to your adopted state……..
what locale?
Bought pre-paid 3-month T-Bills for 6/30 YTM of ~5.4%. I’d ladder these for short-term cash management all day.
If you are one of the few left like me who prefer traditional cable/satellite and Sirius, dont waste your dividend income on overpaying. If you arent getting a discount threaten to cancel and get the discount. Just knocked $55 off my Direct TV, and got my Sirius back to $5.99 plus tax monthly as they will charge you over $23 for the package if you let them get away with it. The chat box cancel threat took about 2 minutes to knock it back down with Sirius. This is an annual event task for me I just completed.
tks for heads up..just accepted 8.99 per month for sirius platinum for 1 yr after which it reverts back to $29
I think you have the most comprehensive package. So I am sure you got best price for it, too. Just remind yourself a few weeks before the 12 month ends to request to cancel and get the discount extended another 12 months.
I get a lot of use out of mine, be it in car, or at home, or exercising.
I agree Grid, Been playing that game for years with Sirius. Have a reminder on my phone to call a day or two before my year is up. Tell them you want to cancel. Never take their first offer – each one will get better til you get the price quite low.
I am ready to do that dance again with them in a few weeks
Mav, if you dont want to deal with callers, go directly to the chat bot box on their website after signing in. That is what I did and it was done quickly. I wish Direct TV had that. As I have to run through the gauntlet to get to the deal there.
I gave up satellite/cable TV (just don’t watch enough) and sirius years ago (my truck is too old to have satellite radio, and my wife gave my car with satellite to one of our kids), however, I have to do the “I am going to cancel” dance with comcast every year.
Silly that companies make you jump through all the hoops. Waste of everybody’s time
Comcast’s new trap is that to get a decent deal, you have to sign up for autopay, so if you forget to do the dance, they automatically pay themselves. They are the most horrible company to deal with. Its crazy that I live in Silicon Valley less than a mile from the main internet backbone line and all I can get for “high speed” internet is comcast, and its not very fast.
Warning! My friend is fighting Comcast right now to opt out 2 hours on the phone and then getting disconnected. He refuses to do auto pay. His SS# was stolen and his bank account was hacked. Too many companies security is being hacked. 24hr fitness wouldn’t even do a contract unless you do auto pay.
It’s getting bad
I hear you Charles. I try really hard not to do autopay, but some of these criminals just refuse.
For comcast, I usually stop by the store to get things resolved. takes less time to drive there, resolve the problem, and drive home than to wait online (and they can’t disconnect me if I am standing there).
When I have to do autopay, I try to set it up on a credit card. I use my Amex – in my experience they are better at spotting/resolving fraudulent/questionable charges. More than once, I have had them charge it back for me and force the company to deal with me directly.
For places that insist on a bank account, I have a separate bank account set up at capital one that doesn’t allow overdrafts and doesn’t charge me for bounced payments.
I have auto transfers into the account to cover the payments, but when one of the payees sneaks in a price increase (or something), capital one declines the transaction and notifies me so I can start the dance. Effective, but it can be time consuming.
My autopay is through credit card. At least I claw 2% back from them.
A Big Thanks to all the above postings re media billings.
Fantastic info for me on how vast the, “question the rate & get a reduction” , has become.
Hats Off to all, just another example of this sites experts postings !!
Private, they got me on autopay with Sirius and Spectrum. But I refuse with Direct TV. I want them to see on the screen when I threaten to cancel, I send a check that doesnt have to be sent, ha.
https://www.ft.com/content/1b0ce791-e387-4ea4-852a-14d59b3ced1f
https://therealdeal.com/national/2024/05/16/starwood-reit-quickly-depleting-liquidity/
These two articles cover the Starwood REIT (SREIT) which is private and does not trade publicly. It is similar to Blackstone’s BREIT in this way.
If you look at this REITs holdings they are about 50% apartments. The slow motion train crash in CRE is still ongoing.
August, Who knew the business model of using short term and floating rate loans then leveraging them and rolling them over was going to blow up? We had like 20 to 22 yrs of low rates except for the taper tantrum. It worked until it didn’t. The feds increase in rates meant they couldn’t rollover debt at the same rate. COVID didn’t help with emptying out the offices and now the triple whammy of property values dropping with the fire sales happening.
The REIT’s who have been paying with cash or stock are going to avoid this crash.
Great points! The thing about SREIT is that it is not public and has gated exits – so how do you get your captial out.
Looking at the composition of the portfolio they have 50% in apartments. If you look at any good apartment REIT (EQR, CPT, AVB for example) they look like they have already bottomed. Same is true with office REITS (SLG, BXP, VNO for example). Office is SREITs another larg allocation. It just must be very frustrating to be stuck in a vehicle like SREIT while they dump properties to raise liquidity. More so when one considered the commission and fees.
Meanwhile other public property REITs (with quality better assets?) have bottomed months ago.
August I think there is more to come. MSN copied a article on STRWD this morning that said they had redemptions requests like 1 billion and they limited withdrawals to 500 million.
Company is worth about 10 billion which sounds like a lot until you consider the money wanting to head out the door. Then on top of that they are trying to issue new stock since they can’t refinance.
I wonder about others like Blackstone etc
Speaking of importing prices to Excel, is it possible to do that for a CUSIP?
Recently SP plus corp completed its merger into Metropolis Technology Cp., effectively taking SP private. My question to the IIIers: Will the Trust convertible preferred CRLKP now be subject to any mandatory redemption, either by the company or by the security holders, or will it become a zombie? I’ve picked through the prospectus for CRLKP, but I’m not sure what I’m looking for, so still clueless.
Best of luck to all.
John, Central Parking Trust has been bought out 3 times and never got redeemed. Of course owners on first sell, got a chance to redeem at a nice deal long ago. Thus why only less than 1% is still outstanding . I asked one of the senior officers and got this response in exact quote, Hello,
You should reach out to the admin agent/trustee; which I believe is BNYM.
Thanks
This may be the dumbest response I have ever heard from someone so involved in the merger. I mean, Bank Melon isnt going to charitably redeem these out of their pocket unless SP initiates the first phase needed…..Or now possibly Metropolis since they are guaranteer now.
None of the paperwork explicitly states anything. And I am not going to waste my time chasing BM trustee. If something was happening there will be a corporate event notice to brokerage. I bought at price I was comfortable owning into the wilderness of expert market for 4 years. So that is my base assumption. Unless a corporate action event occurs this likely will go dark and expert market in less than 2 weeks. Metropolis would have zero interest in providing their private financials publicly for this.
I only own 1000 shares or so. I did have more but a spike a while back above $23 made for a nice gain of about $3 or so, so I sold hoping to get more back cheaper which hasnt happened. If there is some expert market sell window I would consider buying more at a lower price. But for now it is what it is, and I will just hold what I have.
Thanks, GB, for your thoughtful response. I am OK to hold these to maturity given the YTM of over 8%.
I saw an article about TOS folks being unhappy with ‘a mess’ in their transition to Schwab ( and musing that people might move accts). I’ve used both this week with no problems until this morning. I tried to update the symbol – MTDJL to the permanent MTB/PRJ.
It would not take it in TOS, plus the old symbol is not quoting at all.
The Schwab platform is ok, no more $6.95 for the OTC trading. Hope there aren’t many of those!
more: Oh boy- turns out TOS uses MTBpJ –unlike Schwab’s MTB/PRL.
Ugghhh… thats gonna suck if they have two different symbols.
Somehow, TOS managed to import my portfolios in their format.
Hey Gary,
unfortunately, schwab uses at least four formats on different parts of their systems.
MTBpJ in Streetsmart edge
MTBpJ in TOS (as you say – I haven’t touched TOS yet)
MTB/prJ on most of schwab.com
MTB+J on some parts of schwab.com
What is really stupid is that they don’t “translate” well between their own systems.
For example: In SSE, one of the choices for an issue is “research on Schwab.com”, but it sends the request in the MTBpJ format when the research part of schwab uses the /pr format. As a result, the schwab.com page opens with an unknown ticker message – and the link to search for the ticker is broken. I tried to get them to fix it for more than five years before I gave up (insane – a translation table is so simple a high school programmer could do it).
special bonus – if you want to research an issue, use this link to the old research page. It actually has data that is useful (unlike the new “re-imagined” page), like dividends, ex-date, etc. Also, if you put in a parent ticker, there is a “preferred” tab that will show all the preferred for that company, incl. specific data.
https://client.schwab.com/secure/cc/research/stocks/stocks.html?path=/Research/Client/Stocks/Overview/
Has anyone seen the partial call of TRINL hit their accounts yet ? I think today is the day it is supposed to happen. This leaves what? 3 more payments before it is called in Feb 2025. Good place to park money for 9 months earning 7%
Good idea, although TRINL currently trades at a premium so you’ll get something less than 7% YTM
TRINL is trading at a premium to redemption, but IIRC it pays $0.4375 a quarter and the ex-date is two weeks away. I haven’t mathed it out, but the $25.30 price isn’t too far out of line (I think – someone can check the math).
Any ideas why the price shown for the delisted AIC (now Ellington Financial cusip 041356502) dived from $24.55 to $22.47 in the past week or so? The issue matures 3/15/25 and per review of EFC’s financials I see no cause for concern.
What a ride on TECTP yesterday. The price rocketed all the way up to $11.68. All my sell orders hit and averaged $10.67. I’m guessing the 10K came out with no mention of a call and buyer’s went nuts for the 12% plus yield or maybe one big buyer with a fat finger hit market instead of limit.
Hello all,
Before I call the company, I wonder if anyone has heard of any news concerning TECTP. It is callable, but as of 5-15 is floating with a nice rate.
Thanks to all for a great site.
It wasn’t called, the 8/15 payment will be based on SOFR + 6.72% as I understand it. But I don’t know the date that the SOFR rate will be based on.
If I am reading the prospectus correctly,
“We may redeem the Series B preferred stock… on any Dividend Payment Date on or after May 15, 2024”
Prospectuses are wonderful things. So full of answers….
You should double check it. Looks like they probably can’t redeem until August.
https://www.sec.gov/Archives/edgar/data/1766526/000114036119008966/s002654x13_424b4.htm
Yup, they certainly are…They even tell you what date the SOFR rate will be based on: “The term “three-month LIBOR” means the London interbank offered rate for deposits in U.S. dollars for a three month period, as that rate is displayed on Bloomberg on page BBAM1 (or any successor or replacement page) at approximately 11:00 a.m., London time, on the relevant dividend determination date. In the event that three-month LIBOR is less than zero, three-month LIBOR shall be deemed to be zero.” But has it been determined officially that they’re going to SOFR? I think the prospectus covers that too:
“Notwithstanding the paragraph immediately above, if we, in our sole discretion, determine that three-month LIBOR has been permanently discontinued or is no longer viewed as an acceptable benchmark for securities like the Series B preferred stock and we have notified the calculation agent of such determination, or a LIBOR event, then the calculation agent will use, as directed by us, as a substitute for three-month LIBOR for each future dividend determination date, the alternative reference rate selected by the central bank, reserve bank, monetary authority or any similar institution (including any committee or working group thereof) that is consistent with market practice regarding a substitute for three-month LIBOR, or the Alternative Rate.”
Anyone have any insights on TPTA… I was looking over my watchlist of preferreds and saw TPTA (6% coupon) down to under 1/2 of it’s redemption value (under $12). Matures in 2026. Yield on TPTA almost 13% with what would be a huge YTM.
A “sister” security, TFSA w/7% coupon (same company – Terra Property Trust) trading around $23, also matures 2026. Seems strange to have such a wide disconnect in what seems like similar security and maturity.
Guy, I owned at one time but between the Hollywood strike and not holding what I would consider A properties I sold.
Use the search in the upper right hand corner. Someone else had been following them and actually emailed and got a response from investor relations. Go back and see if you can find the comments
Thanks Charles, I used the search for TPTA and newest results were from 2023. Didn’t see anything specific to anyone contacting investor relations. I’ll keep on my watchlist for now, but not looking like this is place to drop cash as investment.
FL_Guy,
Go back to READER INITIATED ALERTS around 02/08/24 for the last discussion of TPTA vs TFSA. Use the “older comments” button at the top until you see comments near that date. Several contributors here including NWGG had quite a bit to say. Full disclosure: I’m holding a LOSING position in TPTA and waiting patiently.
Thanks for the path to success. Not sure why the search didn’t show that part of the discussion thread.
The first page of the TPTA prospectus says the following:
“The notes will be structurally subordinated to all existing and future indebtedness and other obligations of any of our subsidiaries and financing vehicles since they are obligations exclusively of Terra Property Trust, Inc. and not of any of our subsidiaries.”
Note that TFSA was issued by Terra Income Fund 6, Inc.
That may explain some of the price difference.
As per financial statements ” In connection with the BDC Merger, Terra LLC assumed all the obligations under the 7.00% Senior Notes”, so from my basic knowledge and understanding these are under the same company in regards to redemption.
If you look at the financials, the 6% and 7% are both shown as obgligations as notes payable (page 30), with 7% showing 3/31/2026 maturity date. Unless it’s a conincidence this seems to be the TFSA notes.
https://www.sec.gov/ix?doc=/Archives/edgar/data/0001674356/000167435624000019/tpt-20240331.htm
Those are definitely the same notes, but the financial statement you linked to is a consolidated statement rolling all the subsidiaries in with the parent. If things go sideways, which looks very possible, the subsidiary will pay its own debts before giving any remaining funds to the parent company. Also, the 7% notes (TFSA) are due 3/31/2026, while the 6% notes (TPTA) are due 6/30/2026. So TFSA has a time advantage in addition to a corporate structure advantage.
I’m not saying that the market is pricing these issues correctly. I’m just trying to help explain why there’s a big difference in the prices, and this is the best I can come up with.
(Standard disclaimer: don’t take financial advice from retired sailors!)
Sailor – I believe there is no longer a separate subsidiary for payment of TFSA post the merger. Or at least that’s what I seem to recall. While rate and duration are slightly different, I could see a couple of bucks, but TPTA looks way out of whack, especially with a duration to maturity of essentially 2 years. Definately a weird issue and I’ll keep on my watchlist for future movement but will let it simmer for now without an investment.
That’s not how I understand it.
https://www.sec.gov/Archives/edgar/data/1674356/000110465922056462/tm2214498d1_8k.htm
“Item 1.01. Entry into a Material Definitive Agreement.
On May 2, 2022, Terra Property Trust, Inc. (the “Company”), Terra Income Fund 6, Inc. (“Terra BDC”), Terra Merger Sub, LLC, a wholly owned subsidiary of the Company (“Merger Sub”), Terra Income Advisors, LLC and Terra REIT Advisors, LLC entered into an Agreement and Plan of Merger (the “Merger Agreement”) pursuant to which, subject to the terms and conditions therein, Terra BDC will be merged with and into Merger Sub, with Merger Sub surviving as a wholly owned subsidiary of the Company (the “Merger”).”
Also, you can go to the Terra Property Trust website https://www.terrapropertytrust.com/ and look at filings. You will see separate filings for Terra Property Trust and Terra Income Fund 6.
https://www.sec.gov/ix?doc=/Archives/edgar/data/0001674356/000167435624000019/tpt-20240331.htm
https://www.sec.gov/ix?doc=/Archives/edgar/data/0001577134/000157713424000015/tfsa-20240331.htm
Terra Property Trust, Inc. (for which TPTA is an obligation) showed $230M of Equity and $640M of (Liabilities + Equity = Assets), for a ratio of 36% Equity to Assets, as of 3/31/2024.
Terra Income Fund 6, LLC, a wholly owned subsidiary of Terra REIT (for which TFSA is an obligation) showed $70M of Equity and $121M of (Liabilities + Equity = Assets), for a ratio of 58% Equity to Assets, as of 3/31/2024.
As I see it, the subsidiary underlying TFSA is considerably less leveraged than Terra Property Trust. The relative quality of the underlying assets isn’t clear to me, but the corporate structure and the differences in leverage should make some difference in risk, hence price.
TPTA and TFSA are essentially the same post merger. Selling TFSA and swapping it for TPTA is a no-brainer. TPTA is severely undervalued imho.
Fl_Guy,
Thanks for the reminder.
Last year, after Terra Property merged with Western Asset Mortgage Capital Corporation, TPTA note was up to $19. Down to %12+ now but up 4% today. Now part of AG Mortgage Investment Trust, Inc. (NYSE: MITT).
Need to look closer to MITT.
Thanks Dan – TPTA was on a watchlist I created a while back, and I hadn’t followed TPTA and wasn’t aware of the MITT merger. Still scratching my head as I see the note issued by MITT still holding up strong, MITN @ $25.26. And MITT just issued another notes issue in past couple of days. So all appears to be good from that viewpoint. Seems TPTA has something underlying that the markets don’t like vs the other note issues.
As Retired Sailor posted, here is a quote from TPT “On August 8, 2023, WMC terminated the WMC Merger Agreement pursuant to its terms (the “Termination”), and the Company was paid a termination fee of $3.0 million.”
Now I’m not sure what if any the relationship is between TPT and MITT except that TPT does own a small percentage of MITT shares.
Terra never completed the merger with Western Asset Mortgage.
https://www.businesswire.com/news/home/20230809498897/en/Terra-Property-Trust-Issues-Statement-Regarding-Terminated-Transaction-with-Western-Asset-Mortgage-Capital-Corporation
I guess that’s why I didn’t know of any merger, lol. Thanks for sharing that info.
other way around.
Western merged with AG.
https://www.agmortgageinvestmenttrust.com/news-releases/news-release-details/ag-mortgage-investment-trust-inc-completes-acquisition-western#:~:text=Completes%20Acquisition%20of%20Western%20Asset%20Mortgage%20Capital%20Corporation,-December%206%2C%202023&text=NEW%20YORK%20%2D%2D(BUSINESS%20WIRE)%2D%2DDec.
Is anyone following Globe Life closely? GL-D is down today and has around a 7% current yield.
Here are the YTM on a few of GL’s bonds:
9/15/2028 – 5.94%
8/15/2030 – 5.865%
6/15/2032 – 5.669%
Is there value in GL-D?
Sorry Dick, but I don’t have an answer. I bought at $14.25 and sold at $15.58.
I do know there was a second short seller report that came out, but it didn’t seem to have much affect on the common. However, today there is a new report from one of the short sellers that claims GL is the subject of an SEC investigation. At this point, I’ll just continue watching… (okay, maybe that’s my answer!)…
The second report was warmed over garbage. Rehashing known items back to 2018. It was like spaghetti at the walls /kitchen sink complaints. Both companies operate from the shadows, so they don’t care about reputablity, just price moves.
The move today is without a wire story news article. For how far the common has come, which is way over a retracement you can expect increased volility. Perhaps some due to buffet coming out with his chubb ins buy, further separating himself from GL
I do not remember who posted about Bank of America’s preferred issues which will be transitioning to floating rates on 9/5/2024 and 10/23/2024. My initial reaction was they would be called. After some belated research, I decided to invest in one of them.
The Series U began to float on 6/1/2023. CME Term SOFR + 339.661. Schwab has a current yield of 8.73786%. So, it did not get called as I would have expected.
I purchased Series X which pays 6.25% until 9/5/2024. CME Term SOFR + 396.661 thereafter. So roughly 9.4%.
Series Z which pays 6.5% until 10/23/2024. 3-month CME Term SOFR + 443.561 thereafter. So close to 9.9%.
https://investor.bankofamerica.com/fixed-income/preferred-stock
do you have cusips on the BAC preferred series U, X and Z as they are not exchanged traded
mj
Cusips are in the URL
BAC redeeming series JJ and U on 6/20 and 6/17. Series X and Z are probably next.
https://newsroom.bankofamerica.com/content/newsroom/press-releases/2024/05/bank-of-america-announces-full-redemption-of-its-series-jj-prefe.html
I am not sure why they waited on Series U ( a year after call date at a high floating rate). But, this alters my thesis, that Z may not be called since they have not called U. If I am lucky, I will get a payment or two before they call it Z,
I got in U a couple of months ago and will make money on it, but not all that much. I found out it was called when I went to see about adding more of it today.
Getting really hard to find anything worth buying.
CIM … New Issue NOTES …May 15, 2024 . . . CIMN
Any Mkt levels for this new issue ?????
NEW YORK–(BUSINESS WIRE)– Chimera Investment Corporation (NYSE: CIM) (the “Company”) announced today the pricing of an underwritten public offering of $65 million aggregate principal amount of its 9.00% senior notes due 2029 (the “Notes”). The Company has granted the underwriters a 30-day option to purchase up to an additional $9.75 million aggregate principal amount of the Notes to cover over-allotments. The offering is expected to close on May 22, 2024, subject to the satisfaction of customary closing conditions.
The Company intends to apply to list the Notes on the New York Stock Exchange under the symbol “CIMN” and, if the application is approved, expects trading in the Notes on the New York Stock Exchange to begin within 30 days after the Notes are first issued.
The Company intends to use the net proceeds of the Notes to finance the acquisition of mortgage assets including residential mortgage loans, non-Agency RMBS, Agency RMBS, Agency CMBS and other targeted assets, and for other general corporate purposes such as repayment of outstanding indebtedness or to pay down other liabilities, working capital and for liquidity needs.
The Notes will be senior unsecured obligations of the Company, and pay interest quarterly in cash on February 15, May 15, August 15 and November 15 of each year, commencing August 15, 2024. The Notes will mature on May 15, 2029, and may be redeemed, in whole or in part, at any time, or from time to time, at the Company’s option on or after May 15, 2026.
Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, UBS Securities LLC, Wells Fargo Securities, LLC, Keefe,
I bot HFRO/PRA AT 19.01 (7.01 YLD) as t he HFRO.pra/pff pair is testing uptrend in place since november (1yr horizon)..having said that close below is 19.18 is ominous as there is unfilled gap from 19.06 to 18.79 and on a 3yr horizon the pair is still trading near .5 sigma cheap leaving plenty of downside …below excerpt from “Trapping Value” on S/A
Investors interested in just the income can consider the preferred shares (NYSE:HFRO.PR.A) which are rated A1 by Moody’s (MCO). They dropped a bit in sympathy, but the lower payout strengthens their position, and the 7.1% stripped yield from an A-rated security is not the worst place you can go.
Dondero and his minions at Highland Capital and Nexpoint have destroyed a ton of wealth for themselves and their shareholders over the past few years. Good Luck.
while a shareholder i am higher in the capital stack
I’m now able to import a stock price into an Excel spreadsheet from ToS using the RTD (real-time data) function in Excel. The formula looks like this:
=RTD(“tos.rtd”,,”LAST”,symbol)
Symbol can be a reference to a cell with the stock ticker or the ticker in quotes, such as “MSFT” or “SRpA”.
“LAST” is a request for the last price. There are other choices for this argument.
Well done rocks2stocks! Yes, there are many data terms available.
rocks2stocks,
I’m unable to import a stock price into my Excel using your formula – I tried “MSFT” for the ticker. I’m using an old version of Excel (from 2013). From what I’ve researched on-line, I need to have the RTD (real-time data) function in my version of Excel ( which I don’t think I have) or I need to create a RealTimeData server for Excel (which might be above my skill level). I’d really like to have the ability to import real-time prices for stocks into Excel. Do I need to have a certain version of Excel? Any suggestions are appreciated? Thank you
Try this link. I am not sure how recent your excel version has to be to use this function.
https://support.microsoft.com/en-us/office/get-a-stock-quote-e5af3212-e024-4d4c-bea0-623cf07fbc54
Excel Page/Insert Tab/Get Add-In – then select “Stock Connector”
Red-
What I wrote is the sum total of my knowledge, except that I know there exists another, older Excel function that can be used. I did a lot of googling and reading before I finally stumbled on a tutorial with the info I needed.
Sorry and good luck.
You will need a newer version of Excel for RTD to work and in my experience, that is the easiest and most reliable way to go. You can buy OEM keys for a few dollars at various different sites online and download Excel, or the whole MS-Office suite from Microsoft.
Red Owl you must have the Schwab ThinkOrSwim app (not the web version) open for the formulas to work.
https://www.propublica.org/article/sports-team-owners-face-new-scrutiny-from-irs-over-tax-avoidance
I know a few of these owners. One is chasing Malone for the Braves. Perhaps Malone enjoys the tax deferred income. In the meantime, my city is building a baseball park which will be leased by another owner (he is poorer and this is a minor league) at a subsidized rate.
As one owner said, “we play the national anthem before every game. Do you want us to pay taxes too?”
ProPublica is long on calling out taxpayers who file their taxes in compliance with IRS rules but mighty short in calling out lawmakers that created the rules.
The lawmakers probably get floor seats from the owners.
Favors bought and paid for.
That wouldn’t surprise me at all. But it all the more reason they should be called out, yet ProPublica never seems to do that.
ProPublica are also the ones who stole or received huge numbers of stolen taxpayer returns from the IRS. Then they selectively leaked and published them, and invented new “we wish taxes worked this way” imaginary tax rates and claimed in their summary articles that the Evil Rich paid a lot less than They Definitely Should, all the while ignoring that they were presumably paying exactly what the tax code requires.
They also did this just ahead of some major election when their favorite political party was trying to campaign on raising taxes to give away more taxpayer money to Likely Voters, er, those More Deserving than You.
I would not trust their ethics or their tax reporting, and would caution reading their various “investigative reports” with a keen eye towards bias.
Thanks again to the veterans on this site who preach the advantage of low-lying GTC’s.
I had a major XFLTRA $24.60 Buy GTC sitting for over a week.
During a 3 minute span at 11:50-11:53 am today, my 24.60 and two other Buys filled.
The rest of the day, before and after, prices filled $24.70 to $24.85.
Thanks, guys
CGBDL is listed as an 8.2% Note but shows ex date amount of 0.575 on 5/14.
Could anyone shed some light on this discrepancy?
No idea why, but I’ll take it !
That’s 9.20% instead of 8.20%…. How weird. They paid the same last time around too….. Quick check of the prospectus doesn’t explain it…. I’d say check with IR, but maybe you’re better off just saying nothing…….Carlyle’s not that dumb, though so there’s got to be an explanation somewhere.
Last time was additional due to the extended stub period. Seems like someone forgot to update the payment details this period.
I saw that, FL, but didn’t do the math… I didn’t think 11 days extra would make that much difference, but it did….. That explains March but who’s the dummy on June? Where are you seeing that ex-date amount, Rich? Maybe your broker’s just screwed up.
2whiteroses, ex-date amount is shown on the TradingView.com chart and Yahoo finance website. I’m thinking it could be a misreported number that will eventually be corrected. I don’t own any shares yet but I was researching for possible purchase when I bumped into this issue and I wanted to get the facts before I jumped in.
Rich and 2WR, I see it at my broker (Fido) too. $0.5751 for the upcoming CGBDL interest payment (May 14 ex-date and June 3 pay date).
I also think that it’s most likely the broker. I assume brokers get their interest and dividend info (dates and per-share amounts) from DTC, which suggests that either DTC hasn’t sent it out yet, or it has but the brokers haven’t updated their systems yet.
Morgan Stanley has a new issue CD maturing (non-callable) 11/23/26 at 5.0% if anyone is interested in a slightly longer duration CD to lock in that rate
Speaking of CD’s…
No, the one at the bottom of the list ISN’T a typo..
https://www.waldenmutual.com/for-individuals/local-impact-cds
Of interest, 10K—100 yrs at 4.75% compounded monthly is ~$1.14m
Geez. You get 10 days to tell them you want your money back, the grace period, or they will enroll it in another 100 year CD. Penalty for early withdrawal is 10 years of interest.
I mean I could not even buy this for my son as he would be 112 years old when it matures. Then his son would have to be johnny on the spot to actually say “give me my money please” before it goes for another 100 years.
What an odd product. You are basically giving them the money forever. You and your heirs would have to be ridiculously lucky and careful to ever get a sniff of it without 10 year penalty.
“CD early withdrawal penalties may apply to both accrued interest and principal, if necessary.
At maturity, CDs are automatically rolled over into a new CD of equivalent maturity, unless the account holder elects to withdraw their funds. The account holder’s election must occur during the “grace period” – which is defined as the ten calendar days immediately following the maturity date.”
I have no interest in this issue but found this detail info interesting…. It also makes me wonder if it has a death put. Does it?
And on the odd side as well, how about a 6 month 5.55% CD from a well known to III’ers issuer? https://www.newtekbank.com/certificate-of-deposit/
NEWT’s finally getting some traction as a bank, but also right now, NEWTL that’s due 8/1/24 is available for approx 8% YTM.
WR you sure they’re calling it?
Just kidding. You have been long suffering over those people.
You’ve got too long a memory, Charles………. lol
Senior citizens can buy 20+ year CDs if they have the customary death put. Almost all cds do, including securtized cds. But normally only attractive (bought) if they are way higher than short terms.
We must be doing it all wrong!
Bloomberg is out with a long story today on a company, IM Academy, that has married investment training with multi-level marketing, ala Amway.
**********************************************************************
During the pandemic, IM grew from a small New York operation into a global phenomenon by selling the promise that it could teach anyone, particularly teens and twentysomethings, how to become a savvy retail investor. For a one-time $275 fee and $250 a month, members had access to online courses and coaches providing trading strategies—the “Yale of forex, the Harvard of trading,”
Terry promised newbie IML day traders spectacular returns. “We have a product that matches the highest-income earners in the arena,” he said in a video, mentioning the $30 million in yearly bonuses Goldman Sachs traders make. IML students could learn foreign exchange trading or how to trade commodities or options. Lessons included a dozen or so prerecorded videos of Terry—at the time the company’s sole employee, along with freelance contractors—explaining market basics, like relying on price charts to predict pricing patterns. “Those kinds of charts are absurd,” says forex expert Brent Donnelly, president of trading analysis firm Spectra Markets. Even if prices followed a certain direction at one point, he says, it doesn’t mean they’ll follow that same direction again.
These salesmen didn’t have any experience with the stock market or appear to show any sign they understood it. But that didn’t matter. They were hot, young and magnetic. By 2017, Rosa, Brown and Morton had become IM’s top salespeople and the company’s biggest influencers. Rosa and Brown eventually earned $750,000 monthly. Morton, often seen on Instagram wearing his gold Rolex and his Louis Vuitton shoes, was hired as executive vice president. Brown cemented his role as IM’s vice president for field operations, eventually declaring in an IM promotional video that it was “the best company in the world.”
Shortly after her 18th birthday, Jones started trading the $7,500 she’d saved up as a part-time convenience store clerk. She followed IM’s directions to copy and paste trading information that traders working with IM would send to her IM app. She could buy a currency at a certain exchange rate, or a stock or an option at a certain price, and sell it when it hit a higher point a few minutes later. Sometimes she made money, but more often than not the price would go the other way and she’d lose her investment. She would ask her IM leaders what she was doing wrong. They told her she was just too slow—by the time she copied and pasted the information to trade on, she’d missed the moment. Jones tried to move faster, but her bank account balance was evaporating. “I didn’t understand what I was doing wrong, but every time I brought it up, I was shunned or told it was my mistake somehow,” she says.
T2 here, the Bloomberg article is very negative from an investor standpoint citing people that suffered >100% losses. Just like other MLM’s structures, the people at the top do make a lot of money. Those at the bottom of the pyramid, not so much. Between this, the Redditers, Youtubers and TikTokers, there seems to be many folks that will teach you tricks to quick riches. And I am leaving out our friends on the unnamed, financial advice website that always have some can’t lose advice.
Would write more but have to go to my IM Academy training class!
FOR THOSE NEW TO III, T2 (Tex the 2nd) IS NOT SERIOUS ABOUT BEING A MEMBER OF IM ACADEMY. T2 RECOMMENDS YOU RUN AS FAST AS YOU CAN WHEN SOMEONE PITCHES YOU ON JOINING THEM.
T2 The Terminator ! Loved the movie.
Chimera Series D (CIM-D) just became a floater on 3/30/24. Just updated my google spreadsheet reflecting the floating dividend announced May 9th by Chimera. The quarterly dividend jumped from $.50 to $.6989, for a yield of 11.44% at today’s price of $24.43. The series B also just floated with a virtually identical jump. Both became callable on 3/30/24 too. Those two represent a significant increase in interest for Chimera. I wonder if I get to enjoy this nice increase or can Chimera scrape up the cash to call one or both? I am beginning to really enjoy owning a number of FF that are now floating!
I don’t own either. I did for a while once-upon-a-time, but I got out a long time ago.
it would seem to me they would want to redeem the B before the D (higher rate), but the D is only about half the number of shares, so it would take less cash to redeem.
As you say, question is whether they have/can raise money to redeem…
I spent no time on their financials, but it looks like they just did a reverse stock split, so raising cash may not be so easy for them.
Maybe the question is whether they are earning enough to pay the preferreds at all? (again, I spent no time in their financials)
CIM Notes due 2029…. New Issue posted May 15…. just noticed @ 10:45am NY. $25 denom….. trying to see Prelim % level.
I have mostly CIM-C now for the lower price and more upside. The price difference balances out after adjusting for the later float and lower rate. Also traded into some CIM-A fixed, may be priced better if rates ever drop in future years.
Hey III’s….. A penny for your thoughts on this. I own GMLPF. It is the last asset in an SEP account that I wish to close as I am now long retired. To close the account I can either “roll” it to an IRA account by selling it and then buying it back, or convert it to my Roth which doesn’t require selling it. A third option is to simply sell it, take the capital loss hit (always an ouch!), and reinvest the money, hopefully in something not likely to become what GMLPF became. I guess the final option is do nothing and leave the SEP with this one asset. What happens to GMLPF can be nasty for me capital wise, or it may turn out ok in the end like some other things I got myself into. It’s a tiny part of my portfolio as I have been disciplined in maintaining a diversified portfolio. I just hate to suffer the capital hit as I haven’t owned it long enough for the dividends to wash it out somewhat. If it came out a few bucks it would. Any comments are appreciated!
I have a mere 100 shares. No knowledge of how risky but too low to sell paying 20%. May be better in a taxable account for the qualified div and the write-off if you lose.
“I can either “roll” it to an IRA account by selling it and then buying it back…”
If you are saying sell it in the SEP account, transfer the money to the IRA, then buy the same stock back in the IRA, I myself would think about this tactic… I rarely, if ever, “buy back” what I sell. After (any) sale, I regard the proceeds as untethered free money. I prefer to reinvest the sales proceeds in whatever is the best investment at the time. Just my two cents.
On the specific stock, GMLPF is illiquid and trades on the Expert Market so I would guess that it will be easier to sell to the sharks in the dark than to buy it back from the sharks in the dark at the same price.
Disclaimer: I know nothing about the ins and outs of SEP Accounts, or the ability to take or not take capital losses or to carry over the basis of losing securities from account to account. JMO. DYODD.
DJ,
I went with the Roth Conversion for my shares last year.
. . .Fed Chairman Jerome Powell says US economy has been performing well lately; it was notable that inflation didn’t make progress in Q1; consumer spending and business investment are holding up well; Fed needs to be patient and let policy work.
Arnd 10:30 NY … FED FUNDS Futures for Sept & Dec …..
Sept Contract indicates FF = 5.20%
Dec Contract indicates FF = 4.98%
per above … looks like a December 18 ease.
One of the more interesting charts I’ve seen in a while.
https://twitter.com/EPBResearch/status/1789262149467939267