Sandbox Page

I will be adding a new link titled “Sandbox” in the right hand menu.

That link will get you to this page.

I had originally set up the “Reader Initiated Alert” page for ‘alerts’. I was thinking this, for instance, might be when a preferred stock is undergoing a temporary selloff and someone wants to let the population know about it quickly. Of course we all (including me) use the ‘alert’ page for general messaging.

I am requesting that we start using the Sandbox page for all general talk, and try to preserve the ‘alerts’ page for ‘alerts’.

I have had a screen up on one of my monitors all week where I see all comments – no matter where they are posted–it is a great page and I wish everyone had a page like that–believe me we all benefit from all the knowledge being shared. I don’t want to stifle any of the exchange of knowledge, but hope to get things a bit better organized by adding the Sandbox page.

1,599 thoughts on “Sandbox Page”

  1. Today’s rally was a godsend for me as I’ve been trying to ditch my perpetuals and only keep 3 year of less maturities and high floating resets. The last couple weeks sure haven’t been fun – watching my puny ytd gain erode day after day. 1/4 of my port is now in short- term bonds, mostly investment grade averaging 5.25%. I’m hoping to sell 80% or so of my port and buy treasuries and cd’s once they get to my “worry free retirement” yield of 5%. Worry free that is assuming inflation comes down. Will still keep 20% in trading issues because I enjoy it so much.
    Instead of buying short-term treasuries I’ve been buying ST corporate bonds for the increased yield. The issuers are profitable and have very good balance sheets so IMO they’re nearly as safe as treasuries.

    1. joel, I read your criteria above a here’s a idea if short enough for your purposes. I bought 800 shares this week of TVE yielding 4.99%% to maturity 6-5-29, AA+ just a thought

      1. I like issues like this as a CD alternative and for safety in exchanged traded debt. Fingers crossed it gets pushed down more over the next 6 months.

        I would like to load up on issues like TVE and CTA-A EAI/ELC/EMP once my higher yielding positions have been filled.

    2. This is why we have markets, people on both sides of the trade. After having a very short duration I’m now looking at extending duration and risk. Nothing dramatic, toe tipping, but if the barn is burnt down it’s a little late to get defensive.

    3. don’t mean to highjack this post. have a question. can’t seem to find where to add new post
      thanks

  2. Retired Sailor, my mistake in saying that about the expert market. Not every preferred goes there when a company is bought out.
    Even if rates go back down by the time these float they still will pay decent.

  3. BOE back to QE.
    Maybe I’m missing something here but here goes. Central banks use their tools (interest rates and QE) to address deflation and global financial crisis. They keep the gas all the way down for over a decade only to help fuel inflation.
    Then they use their tools (interest rates and QT) to solve a problem partly of their own making.
    Then when their fix breaks other things (pension funds) they revert back to doing what helped fuel inflation and what caused the other things (Pension funds) to do things to survive in low interest rate environment that would break when higher interest rates arrive.

    Brilliant.

  4. Keep the $hort US Treasuries at 4% and they will come! I bought:
    US Treasury Notes 0.125% (!) coupon due 5/31/23 @ $97.449 to YTW/YTM 4.025%.
    Smile, I am Azure

  5. Tim-
    In your: Master List of Preferred Stock and Baby Bonds – Utilities
    if you click on the blue Current Yield – and look at current yield, it shows some figure in dollars and cents. Not sure why it’s there, since current yield is in the
    Alpha part. Maybe not worth changing.
    thx

    1. Tim-
      Also in-Short and Medium Maturity Income Issues (Preferred Stock and Baby Bonds)
      I don’t see the SCCF baby bond.
      thx

      1. Hi Gary, I know nothing about this as an investment. Except my experiences.
        I need to get beyond SA for my source of news. But the chart there does give a clue.
        You pull it up and the company SACH shows as only being listed since 2017. I wouldn’t be surprised that some of the people who work there worked elsewhere during the GFC and have experience. They made it through 2020 and only had about a 3% loan default in 2021. They are a unique MREIT in a niche market. They do development loans say with a 3 month to 12 month payback. As each phase of a development is reached the banks release funds. SACH would probably have the loan written that they are paid first on all monies released by the bank. These development loans as short term loans carrying 12% to 14% or higher. These are high risk loans in a downturn in the building market. Usually a lender like this breaks even if the builder gets as far as getting in the utilities, sidewalks curb and gutter and roads paved. If the builder defaults at this point, The short term lender and the bank can take over the property. Things can get murky at this point. Depending on the business climate at the time, the MREIT might offer to buy out the bank and bring in another builder by sinking additional funds into the investment. In a really bad situation first lien holder could be the bank who declares asset value is only enough to cover their interest and they cut out secondary holder.
        I think one of the SA articles said SACH works almost exclusively with WF

  6. As noted elsewhere, today is DD Day for FTF issues VLYPO and NLY-F (and possibly others of which I’m unaware).
    With 3ML of 3.6741%, I calculate a coupon of 7.25% for VLYPO and a payment of $0.4633 for the next quarter.
    I calculate a coupon of 8.67% for NLY-F and a payment of $0.5537 for the next quarter.

    1. nhcoast
      The coupons changed? The first is past call, the second is callable in two days.
      Something other than the coupon? What is 3.6741%?

      1. Yes, they are FTF issues – and start floating with the new rate being determined today

        3.6741% is 3 month libor

        1. What Mav said. Also note that “past call” is somewhat fluid with the FTF issues. For example, VLYPO is only callable on dividend payment dates. So not callable now until 12/31. As always, DYODD.

    2. Isn’t the float rate set on 9-29? – not understanding why others say 9-28.
      “Dividend Determination Date” means the London Business Day (as defined below) immediately preceding the first date of the applicable Dividend Period.”

      “Holders of Series F Preferred Stock will be entitled to receive cumulative cash dividends (i) from and including the original issue date to, but excluding, September 30, 2022 at a fixed rate equal to 6.95% . . . and (ii) from and including September 30, 2022, at a floating rate equal to three-month LIBOR plus a spread of 4.993% per annum of the $25.00 per share liquidation preference.

  7. ROTH Conversion question. I cannot add to my existing ROTH via annual contributions because of income limits but I would like to transfer some losers from my traditional IRA into the ROTH. From what I’ve read a ROTH conversion is permissible to do under these circumstances without IRS penalties, but I wanted to run this by some of the others here that are already doing a ROTH conversion. Also, the article I read said you couldn’t cash out the converted amount for 5 years – does that mean you cannot trade the converted stocks for 5 years while they sit in the ROTH? Seems difficult to manage the converted stocks after the conversion, but maybe I’m not understanding this.
    Thanks.

    1. Leonard…I’ve been converting IRA to Roth for several years now. When you convert you will owe income tax on the amount converted and you will have to make estimated quarterly payments to the IRS and state (if you live in a state that has an income tax). You could also choose to have the taxes withheld from the conversion amount by your brokerage and not have to mess with the estimated tax, but then you’re giving up some of your IRA to the tax man. As far as the 5 year rule, if you had the Roth open for at least 5 years, it doesn’t affect you. You can google the 5 year rule to get a better understanding. Finally, have you considered a Backdoor Roth if your income is too high to make an IRA/Roth. It’s an option, but has a few more tax entries when you file. Turbo Tax and a step by step discussion make it pretty easy.

      1. dlcnws, thanks for the input. Both my IRA and ROTH have been in existence for more than 5 years, and I plan on moving only about $15 – $20K worth of beaten down stock which should not impact my tax bracket, and then hopefully they rise in value in the future.

        1. Leonard…If Roth had been around early on or if my employer had offered a 401k Roth, I would have jumped on it. I’m converting around $75,000 each year and pay the estimated quarterly taxes. The Roth’s will pretty much be as an inheritance for my two kids and it’s easier for me to do the conversion and pay the tax. If you google Backdoor Roth you’ll get a lot of info on how it works. If I were still working and above the limit, I’d be going that way.

          1. You’ve raised a point about converting to a Roth when you’re older that I’ve wondered myself: If you are doing this primarily for the inheritance by your kids, assuming your total estate is within the bounds of the Federal estate tax exemption amount, why pay the tax to convert to a Roth as opposed to just letting it stay in the IRA? Are you thinking the reduction in your RMD amount because of the conversion will make it worthwhile???

            1. 2whiteroses…I still have several years before I hit the RMD age so that’s not an issue for me yet. The Roth can be left as an inheritance with no taxes owed by the beneficiary, but must be drawn out with a zero balance at the end of ten years. The traditional IRA would have taxes due when the beneficiary takes any out, and would also have the ten year window.

  8. DCP is going to be acquired by PSX. DCP has 2 preferred issues B and C. The C’s have a rate of 7.95% and floats at 4.9% plus libor on 10/15/2023. The C’s closed yesterday at 23.79. I assume there is a change of control clause that will allow PSX to call the issue after the close of the deal. This looks like a quick $1.20 profit.

    1. Harry,
      I think PSX mentioned they might call the DCP preferred, but not really a change of control since I think they are already part owner of DCP I would have to research this some more.
      Investors have to be careful, even with wording in the original offering. There have been several takeovers mentioned that the preferred didn’t get called and went to the expert market.

  9. GMLPF is trading cheap if anyone is looking to add to their higher risk bucket. It is around $17 which means it is paying over 12% now. I find that kind of surprising since it is owned by New Fortress which has decent financials and is in a industry which is minting money right now.

    Both Nordstream pipelines being blown up today will only make energy even more scarce. I will have to look and see where Golar and New Fortress do business.

    1. @Scott R. – I saw your post last Friday about “flipping” GMLPF, and your post today reminds me that I wanted to ask you where you’re trading these. TD Ameritrade & Schwab shut me out of buying these due to the 15c2-11 “expert market” restriction (they still permit “closing” transactions, but don’t show quotes).

      Are you trading these at Fidelity? (I recall vague rumors about them being the only broker where you can put in buy orders.)

      Thank you!

      1. Yes. But I will say this. Orders don’t seem to fill the same as is typical. You will see a LOT of trades that happen at prices lower or higher than you bid to buy or sell.

        I did my last flip on it, but it is still on my watch list and I noticed it has moved to a lower range now for some reason.

  10. i see td is selling a jpm cd due in 2029 at 5%
    Its callable in 6 months
    if it gets called, it’s a 6 month cd at 5 percent
    if it last longer , that’s even better at 5 percent
    anyway, had to get a little of that

  11. I put all the blame on planet JUPITER.
    It’s too close, people, too close!
    It may be responsible for our losses and storms.
    In the moon time, IO, IO, so, off to work I go.
    Anyway, that’s my rant
    Hey , it’s 10:05 AM and I’m up $87 so far today. Yesterday I lost 5k .
    So, thank you Mr Market.

    1. It sure was bright last night up here in the PNW. One of those few times I wished I had a decent telescope.

      1. Replying to Bur Davis
        “The stars are better off without us”
        Josephus Miller in The Expanse

    2. Grid, this is why I dont comment here anymore among the other reasons we discussed privately. “No politics” but they can’t help themselves. If Tim ever gets a mute button I may start again. I will go back to being a lurker once more, checking in daily.

      1. Thank you Bea,
        Like hearing from you. How are the miners doing ?

        May the Force be with you!

        1. I am sorry I was so testy Tim, you know I have followed you since the Yield Hunter days and you are the best…like that site, this is my 1st check of the day in the AM when the market opens. I appreciate all that you do. I guess getting close to elections being bombarded w ads online, TV, folks are in that mode yet again. But anyway, take care all, good luck and stay nimble! Bea

          1. Thanks Bea–I love to have great commentors–I learn a lot – hope you can join us.

  12. Here’s my question: What is going to stop the bleeding in the market this time?
    As far as my recent memory serves, market downturns have been stopped by the Fed coming to the rescue in some way or another. However, that doesn’t seem to be in the cards, at least, in the near term. So what is going to stop the bleeding and how far down are we headed?

    1. I have read in the past something normally breaks in a foreign country(s) which causes the fed to take pause. Sometimes here at home will do it as well. One could say that is already happening in some fashion in England with the pound, for example, with the dollar being ridiculously strong right now. If you are a foreign corp or country with USD issued debt it is a difficult time lately. With that said one has to wonder if the fed won’t stop until they break something here at home. So that could be a recession. High unemployment. Etc..

      At the rate they are going they are getting pretty darn close to it combined with other shenanigans world wide like China with their insane covid lockdowns and Russia basically making terrible decisions constantly adding to the turmoil.

      So I feel whatever it will be.. it will probably be sudden and the QT will end. Then investors can take stock of the situation and often things improve once the newest storm has passed. I can easily see S&P500 at 3200ish for a time when the storm hits and the final panic takes place. Flash lower but for how long who knows.

    2. TEF, I wrote a post earlier tonight to address this issue before you posed the question, but decided to trash it. It was an opinion piece, which is what any reply to your question is going to be. Nobody can lay out a fact based case which will definitely answer: What stops the downturn and how far will it go? Is you ask 100 III’ers, you will probably get 100 different opinions?

      My post was titled: “It IS different this time?” Long story short the Fed started bailing out financial messes back in 1998 when Long Term Capital Management (LTCM) blew up. It was about to take down several major banks and at least one country, Thailand IIRC. Alan Greenspan decided that the consequences of NOT bailing it out were two great, so he organized an orderly wind down. That was the birth of the so called “Fed Put.” It got used again in the 2007-2008 Great Financial Crisis where the “Too Big to Fail” banks were all bailed out.

      Fast forward to today: my opinion is that the Fed Put is no longer in place. Or if it is in place, it will be at a lot lower price, say of the SP500. The reason I think this is that Jay Powell is hades bent on getting inflation back to ~ 2.0%. He is really unhappy that the ~ 400 PHD Fed economists a) did NOT foresee inflation getting this high and b) wrongly calling it “transitory.” Reporter Nick Timiraos of the WSJ is the unofficial mouthpiece of Fed activity behind the scenes. He reported last week the Jay had a speech all ready to give at Jackson Hole in August, but tore it up and started over at the last minute. Jay was unhappy that “investors” had already penciled in the Fed Put and had bid up stock/bond prices in August. He thought investors were NOT taking him seriously when he said he was hades bent on getting inflation under control.

      Jay knows that the Fed is going to:
      a) Cause a recession
      b) Meaningfully increase unemployment
      c) Significantly lower stock prices
      d) Significantly increase interest rates until the Fed can conclusively prove inflation is down and will STAY down

      And he is convinced that is the best path forward. And he has convinced me he is serious. There are a lot of other economic issues around the world and one possible act would cause him to change, being WWIII. We all hope it does not happen, but have to admit it is possible. Of course if nukes start going off around the world, we have bigger problems than what our investment portfolio is worth.

      My views on this have been pretty consistent. This is what I posted on February 11th:

      “Personally my highest probability forecast is that interest rates continue to rise and broadly speaking ALL preferreds continue to fall. Your personal forecast should dictate if you take any action(s) or not.”

      For a while it was correct, then we had a summer rally and it was not correct, now it seems correct again.

      1. We are in unchartered waters with unemployment with the number of boomers retiring every day dwarfing the numbers entering the labor market, something that is going to continue for a few more years.
        The models for unemployment haven’t been adjusted yet.

        1. Interestingly enough the death rate just surpassed the birth rate in the US too.
          Think about our societal mind locked on some past paradigm.

      2. Tex:

        Is their a PhD Economist at the Fed who truly understands how financial markets work? Powell’s whole notion that he can crush inflation down to 2% in a short period of time from its current level is ridiculous.

        If he continues with these massive 75 basis point increases every 4-6 weeks, something will likely break very hard. His actions could have enormous consequences if dollar strength continues. Financial events very often start in the currency markets.

        I don’t think Powell wants his ego and legacy tarnished with a black swan financial crisis that will most definitely be blamed on him and the rest of his band at the Eccles Building.

        I believe he will eventually blink, just like he did in 2017.

        We shall see.

        1. Rob, I agree with you that the Fed cannot get inflation back down to ~ 2.0 quickly. Bank of America published a report last week that looked at many countries that had “high” inflation and how long it took them to get it down to 2.0%. I do not recall the exact number, but it something like 10 years. I think Jay is not happy with his legacy of letting inflation getting out of control, so he is willing to risk a black swan event. You and I have been doing this long enough to know that something will break, we just don’t know what the first one will be. What is the next LTCM or Lehman or AIG-London?

          As long as whatever breaks does NOT cause contagion, I think Jay will let it run. If there is some bank/fund/company that has insane leverage and goes belly up, that potentially would be a black swan that causes Jay to pause and start loosening.

          I am guessing that most III’ers were not active in the financial markets pre 1980. If you were NOT active:
          a) Inflation in the 1970’s was darn painful for many years, particularly for retirees. It was high for many consecutive years, unlike the current one year of high inflation we are experiencing. The Burns fed did NOTHING about it for many years and let it get out of control. There were several other factors, but the Fed did not use the limited tools they had.
          b) When Volcker raised short term rates, he became public enemy number one. All politicians hated him, the public hated him and probably even his dog. His increased interest rates caused two recessions and put many people out of work. It took many years for him to be appreciated for killing inflation. He was willing and able to take the criticism because he believed it was the best long term solution. History proved him right in that belief.
          c) There were bank failures, Continental Illinois being the largest one in 1984, but its failure did not spread to other major banks.

          We will see how thick Jay’s skin in. Some politicians have already started attacking him for raising rates. I don’t think that is enough to cause him to change course. I don’t think a recession and a few million people out of jobs will be enough either. House sales are going to collapse, but so far prices are NOT in a 2008 type freefall. That loss of activity will add to the recession. Will probably see more crypto collapses, but so far there is not a significant spillover effect to the rest of the economy. Lots of possibilities for this time’s Lehman event, but not a clear front runner that I can tell.

          Bottom line is I am with you: we shall see.

    3. TEF, This time it’s going to be good old capitulation. This is somethjing to figure out before you put real money into anything, even a personal residence.
      I think there will be a nascent uptick and that is when the rabbits will jump out of the bushes and think it is a blessing to sell there before more pain. Every downturn has that feature. It’s amazing how sites like SA perpetuate and confuse the geniuses (read : rabbits) with guessing, fear and hope. Large scale Behavior is that short term influence on something like an Index.
      Of course, Interest Rates go up and down, revert to the mean and are MORE volatile than stocks. When you work, sleep, your cardio-pulmonary changes too. That’s its nature. Try not to breathe after a nice jog.
      Not everyone is The Capitan, but self directed, successful INVESTORS are.
      Every step of the way the screen is, “is this a long term investment or a speculation.” This site is a good place to put your ideas on trial.

    4. Can anyone tell me how we got to a system in which a small group of people, not responsible to anyone, can trash the economy, and our retirements, based on a 2% inflation number they got from someone in Australia?

  13. Another interesting day with a lot of moving parts. One issue caught my attention: Eagle Point Income Term Preferred (EICA) $25 par, 5% coupon, callable 10/30/23, matures 10/30/26. It was down -6.68% ($1.54) to close @ 21.50. It was one of the big losers percentage wise today.

    Low probability it will be called early, but yield to maturity is ~9.0%. Dividends are qualified and it is unrated. The parent EIC holds “Junior CLO’s” which are hard to accurately value, particularly as to default risk. The common recently raised the dividend and it is currently yielding 12.3%. So the market is saying the common dividend IS at risk, despite the company’s optimism. Clearly on the speculative side and NOT investment grade. Can it make it four more years without defaulting?

    We own moderate amounts in several accounts and have not been buying or selling in any account. It trades with microscopic volume, 90 day average ~ 1,900 shares/day, so this down day might just be noise and NOT significant.

  14. Brunswick BBs go ex-div in a few days. Some under par. Yielding 6.6%ish. I picked up a 100 of BC.A just now to add to my BC.B. IG and not in finance, insur, bank, mreit, etc…

  15. Yield was just too good to not park some idle cash: bought at Vanguard, United States Treasury Notes 1.75% due 05/15/23 @ $98.546 to yield 4.097% YTM/YTW CUSIP 912828VB3 Thank you Uncle Sam 🇺🇸
    Don’t judge each day by the harvest you reap but by the seeds that you plant.
    I am Azure

    1. I paid 98.554 for 35K yield 4.083 if held to maturity.
      Plenty of dry powder left.
      Thanks Azure

      1. Great buy, can you rennet what the yields on this maturity date at the beginning of the year? Probably 1% ⭐️

    2. Azure:

      For all the Treasury Investor Newbies out there looking to put money to work….do those T-notes actually pay semi-annual interest or do you just receive your $1000/note back when they mature (similar to T-bills)?

      If they pay interest, when is the semi-annual payment date?

      Thanks!

      1. Rob, interest is paid each six months. The payment months are the maturity month and whichever month is six months prior to that.

        Keep in mind that notes trade with accrued interest. That is, if one buys a note that pays in a month, there will be five months of interest due upon purchase.

      2. Hi Rob and thank you for your question. United States Treasury Notes pay semi-annual interest and will mature at par ($1000 per bond). Because the T-Notes I bought will mature 5/15/23 there will be payments every November 15th and May 15th until maturity. I would be glad to help anyone here I can. I like to buy these US Government bonds from Vanguard as my Merrill Edge account is just too hard to buy bonds because of the built in commission. Vanguard has ZERO cost when buying US Government secondary bonds.
        None are so brave as the anonymous.
        I am Azure

    1. Irish – I think there is a motivated seller in size as trading volume right now is already 8X the 20 day average. This is significant for a thinner preferred such as PW but at least common stock price is holding up.

    2. Irish:

      Everything with a yield is breaking. Even the STAR preferreds are now trading well below $25, even though those will be paid off at $25 in cash if SAFE deal goes through. If it doesn’t go through, STAR has $1+ Billion in cash.

      Feels like we are getting real close to capitulation in the preferred and baby bond space….but who knows. Last week of trading in the third quarter can often be bat-shit crazy.

      1. I had a lowball bid in on star-d 24.5 and it blew right by me. It went right down into the 23’s. I have had this happen a few times where my low ball bid was too high.

  16. Looking to see what people are watching for “Deep Discount” plays for those who are interested in these setups that could potentially payout in the future. I know Mr. Conservative has brought this up a couple times. To me there are two components. First, there must be a sizeable discount to par or liquidation value. Second, the underlying security must be basically able to be reasonably underwritten at IG; as the returns on these plays are very much a sit and wait (and hopefully collect income while you do it). Some names have already been thrown out there: PSA, CMS-C. What else are you buying/watching?

    1. Schwab’s preferred stock screener provided some ideas for banks, insurers, and utilities with BBB or better rating. I added the highest and lowest yielding PSAs. I own small amounts of about 10 of these, but I’ll buy more if we start to see a light at the end of the tunnel because the current yields are decent and there is a potential for capital appreciation. These could all drop more if the Feds continue raising the Fed Fund rate, so do your own DD and nibble for now.
      Format is TICKER, INITIAL YIELD, CURRENT YIELD, PRICE AS OF 9/23/2022, S&P RATING, AND MOODY RATING

      PSA/PRF 5.2% 5.7% $22.58 BBB+
      PSA/PRN 3.9% 5.9% $16.55 BBB+
      BIP/PRB 5.0% 7.8% $16.01 BBB- NA
      FRC/PRM 4.0% 6.2% $16.25 BBB- NA
      USB/PRQ 3.8% 5.8% $16.25 BBB+ Baa1
      BHFAM 4.6% 7.0% $16.54 BBB- NA
      BIP/PRA 5.1% 7.7% $16.64 BBB- NA
      FRC/PRK 4.1% 6.1% $16.83 BBB- Baa3
      USB/PRR 4.0% 5.9% $17.03 BBB+ Baa1
      WRB/PRG 4.3% 6.2% $17.05 BBB- Baa2
      RNR/PRG 4.2% 6.2% $17.08 BBB NA
      CMS/PRC 4.2% 6.1% $17.13 BBB- Ba1
      WRB/PRH 4.1% 5.9% $17.39 BBB- Baa2
      BAC/PRP 4.1% 5.9% $17.41 BBB- Baa3
      FRC/PRL 4.3% 6.1% $17.46 BBB- Baa3
      BAC/PRQ 4.3% 6.0% $17.67 BBB- Baa3
      GL/PRD 4.3% 6.0% $17.85 BBB+ Baa2
      JPM/PRM 4.2% 5.9% $17.91 BBB- Baa2
      FRC/PRN 4.5% 6.2% $18.11 BBB- NA
      DTG 4.4% 6.0% $18.13 BBB- Baa3
      ATH/PRD 4.9% 6.7% $18.30 BBB NA
      CFR/PRB 4.5% 6.1% $18.38 BBB- Baa2
      DTB 4.4% 6.0% $18.38 BBB- Baa3
      BAC/PRO 4.4% 5.9% $18.43 BBB- Baa3
      SOJE 4.2% 5.7% $18.45 BBB- Baa3
      ACGLN 4.6% 6.2% $18.49 BBB NA
      FRC/PRJ 4.7% 6.2% $18.86 BBB- Baa3
      JPM/PRK 4.6% 6.0% $18.93 BBB- Baa2
      BEP/PRA 5.3% 6.9% $19.15 BBB- NA
      USB/PRS 4.5% 5.9% $19.17 BBB+ Baa1
      PRE/PRJ 4.9% 6.4% $19.19 BBB Baa2
      AFGE 4.5% 5.9% $19.21 BBB- Baa2
      TFC/PRR 4.8% 6.2% $19.27 BBB- Baa2
      JPM/PRL 4.6% 6.0% $19.32 BBB- Baa2
      BHFAN 5.4% 6.9% $19.45 BBB- Ba2
      BAC/PRS 4.8% 6.1% $19.55 BBB- Baa3
      ALL/PRI 4.8% 6.0% $19.86 BBB Baa2
      MET/PRF 4.8% 5.8% $20.34 BBB Baa2
      JPM/PRJ 4.8% 5.8% $20.36 BBB- Baa2
      FRC/PRH 5.1% 6.3% $20.37 BBB- Baa3
      AFGC 5.1% 6.2% $20.60 BBB- Baa2
      WRB/PRF 5.1% 6.2% $20.60 BBB- NA
      BAC/PRN 5.0% 6.0% $20.75 BBB- Baa3
      AXS/PRE 5.5% 6.6% $20.86 BBB Baa3
      SOJD 5.0% 5.9% $20.90 BBB- Baa3
      ACGLO 5.5% 6.4% $21.27 BBB NA
      ALL/PRH 5.1% 6.0% $21.39 BBB Baa2
      BAC/PRM 5.4% 6.2% $21.84 BBB- Baa3
      ATH/PRB 5.6% 6.4% $21.85 BBB Baa3
      TFC/PRO 5.3% 5.9% $22.22 BBB- Baa2
      AFGD 5.6% 6.3% $22.30 BBB- Baa2
      FRC/PRI 5.5% 6.1% $22.41 BBB- Baa3
      DTW 5.3% 5.8% $22.46 BBB- Baa3
      RNR/PRF 5.8% 6.4% $22.50 BBB Baa2
      WRB/PRE 5.7% 6.3% $22.64 BBB- Baa2
      SOJC 5.3% 5.8% $22.68 BBB- Baa3
      CMSD 5.9% 6.3% $23.22 BBB- Baa3
      SREA 5.8% 6.2% $23.24 BBB- Baa3
      USB/PRP 5.5% 5.9% $23.32 BBB+ Baa1
      CMSA 5.6% 6.0% $23.46 BBB- Baa3
      SR/PRA 5.9% 6.3% $23.51 BBB Ba1
      ALL/PRG 5.6% 6.0% $23.54 BBB-

  17. Just a thought.. With the last rate hike of 75 bps widely expected, and the fed’s “tough talk” basically a repeat of other recent comments, it seems the present rate surge through most of the curve might have been prompted by the last inflation report being a tenth “hot”. Wonder if a few reports were a tenth or two “cold”, would we see the opposite reaction? Hoping for higher rates/better prices/ higher yielding floaters, so I’m kinda looking for this to happen. If it does, I suppose we could hope for yield spreads to widen. Lol

  18. Good Weekend!
    Gotta say that after the rush of doubt and hope this week wondering if I made the right moves over the last three years, it has made a lot more sense to be in income instruments and let the divys/int pile up and wait for a buying opp. to up grade the overall rate of return and good IG.
    The rate panic and resetting issues are something I can live with and slanted to my overall benefit. Granted, that uber-low rate, turn on your heels waltz move has been the detractor, but those lower yielding instruments (and I have five full positions) are still doing their job at better than CDs now. I think there may be some reversion in price eventually? So I let them pump like a heart.
    The yield-equity plays also have time to work out and are back down to where I bot, but paid good divs. I would like to add a few slivers in the Roth yet? In this environment I have been able to get good options income and if they get called above my price, okay.
    Don’t forget that SOMEONE is buying when someone is selling, but selling is all that is apparent right now. If you buy and can live with that for a long term, try to get a gooder, best deal of course. It’s a good time to be picky. No hairball buy orders have been triggered yet.
    Overall, I’m happy the forces at this site have asked me to scrutinize my entire process and the above is a synopsis of that effort. Many will be shocked when their statements show up from some fee-broker.
    Starboard>Right, Port>Left, Carry On.
    PS: Whatever happened to RZC never saw it quoted? Is it at some big discount?

  19. Sold my DDT (Dillards) today for $26.15 against a purchase last January at $26. It traded all year between $26 & $27. S&P rated B-. My yield was 7.23%, but I was just nervous that it would eventually be taken to the cleaners like everything else.

    Bought NYCB-U at $43—6% coupon and at $43 yields 6.98%. It’s high was $53.78 about a year ago. It matures in 2051, at which time I will have been long gone from this world.

  20. Just remember this key point. Don’t rush and trip over yourself trying to buy something. I am watching allot of preferreds today and I’m seeing big spreads with low volume.

    If we really end up getting one or two major unwinding days with big volume, you are going to see significant price tanks and it will be imperative to have some cash available on deck to deploy.

    When in hindsight you look at some random security and see the 52 week range and the low is some ridiculous say $9 or $11 etc. for a preferred. You think to yourself, would have been nice to buy some there. Well that window of opportunity to actually score that price is always a very short duration of time.

  21. I picked up some EPPRC at $45 today on a limit order. I really didn’t think it had a chance to go through, but good for me. I hope.

  22. FWIW _ Only a couple weeks since the last increase (3d or 4th since I opened acct in June):
    “The annual percentage yield you are earning on your Bask Interest Savings Account has been increased from 2.53% to 2.75% APY*.”

    FDIC bank.

    1. Only 8 so far – best is RC-E, a little over 1% — huuuge! Not.
      Butt ugly day- but need to drop more to buy.

    2. Not I. This weekend’s project is going back through the basis data on everything in the taxable account with an eye toward harvesting losses for year end.

  23. For those who own SLMNP, what are your thoughts on it now??? I would think that if it was tradeable today in the real market it would probably be worth less than the put price of $848 approx. since that’s only a 7.07% current yield. On the one hand, that should mean it’s time to put them back to LYB. On the other hand, you also now have a preferred that has zero downside because you can always choose to sell to the company at that price. So unless you are concerned about the financial health of LYB longterm (it is trading at a 52 week low), ignoring tax implications the only real reason to sell would be to redeploy the funds elsewhere, right? I own mine in a taxable account but sure don’t have a tax reason to take additional losses…… I own at 1026 approx. Has anyone put theirs back? Did it go smoothly?

      1. thanks, mcg.. .I knew somebody had but didn’t remember who……… good to know it went smoothly

    1. Never used the SLMNP put. Largest single position is in LYB will acquire more on significant drops.

  24. i see cown (cownl) is now at 24.5
    callable next june. nice yield
    i wonder what the odds of a call are now that they are being taken over

    1. bob – https://www.sec.gov/Archives/edgar/data/0001466538/000095015722000833/ex2-1.htm p 55 Section 6.13 There seems to be some wiggle room in the language as it was written but the implication is that COWNL was expected to be called or otherwise redeemed upon the closing of TD’s acquisition: ‘

      At Parent’s written request and at Parent’s sole expense, Company shall reasonably cooperate with, and provide reasonable assistance to, Parent in connection with any steps Parent MAY[emphasis added] determine are necessary or desirable to take to retire, repay, defease, repurchase, redeem, satisfy and discharge, cancel or otherwise terminate effective at or after the Effective Time, some or all amounts outstanding under (i) the Credit Agreement, (ii) the Indenture, (iii) the Note Purchase Agreement [meaning COWNL] and (iv) any other indebtedness of Company or its Subsidiaries (including any indebtedness that replaces the foregoing), which cooperation and assistance shall include (A) arranging for (1) the optional redemption, satisfaction and discharge, defeasance, exchange or other repurchase by Parent, any of Parent’s Subsidiaries, Company or any Company Subsidiary of, or a tender offer by Parent, any of Parent’s Subsidiaries, Company or any Company Subsidiary for, some or all of the notes issued pursuant to the Indenture or Note Purchase Agreement….”

      1. thanks for the info. i suppose the other question is will they (td) back out of the takeover due to market conditions
        crazy world right now

  25. I bought Old Nat Bancorp’s 2 sister preferred issues (ONBPP AND ONBPO) today at $25.25—7% fixed perpetuals callable in 8/25. Baa2 rated and qualified distributions. I continue to buy as prices go south. After such purchases, I lower the prices on all my other outstanding orders. Just slowly buying as yields on IG issues go higher. Hope I’m right, but can live with these buys if I’m wrong.

    1. Pickup a full position on ONBPO at $25.44
      A little higher than I wanted but only lose last payment in principle if called

      I have also been adding to low coupon IG issues way under par.
      ADC/A JPM/K BAC/S – all at 6% – never would have thought we would see the day
      Not piling in just yet, but as long as they keep paying I hope to be laughing all they way to the bank. Fingers crossed.

  26. Does anyone know anything about this SOFR? I heard and the source could be incorrect, that it will replace 3 month LIBOR. On globalrates.com it shows SOFR at 2.26 and LIBOR at 3.60. If true, would the floaters with 3 month libor change to this SOFR? That would be a meaningful change.

    Thanks

  27. Westbanco, WSBCP preferred, just declared preferred dividend. If this one dips below par plus divi again, it may serve a purpose for someone who is looking for quality with a backstop at first call. Like anything never chase in this environment. I got a nice allotment again for me a few days back in 25.30s, but it has creeped back up since.
    It has a juicy 6.55% adjustment plus 5 year which means it likely will be redeemed in 2025. It was a “covid time issuance”. It has been ranked a top 10 bank by Forbes for over a decade and has been around since the 1800s.
    Since it isnt rated it may seem a bit nebulous, but Forbes has always thought highly of it.
    WHEELING, W.Va., Feb. 10, 2022 /PRNewswire/ — WesBanco, Inc. (Nasdaq: WSBC), a diversified, multi-state bank holding company, announces that its affiliate, WesBanco Bank has been named the #10 Best Bank in America by Forbes. The 2021 ranking is WesBanco’s twelfth year on the list since its inception in 2010, and third year in a row in the top 12. The Forbes annual list ranks the 100 largest publicly traded banks and thrifts by assets based on ten metrics related to growth, credit quality, and profitability.
    https://www.wesbanco.com/news/wesbanco-named-the-10-best-bank-in-america-by-forbes/

    1. So that was you who was beating my bids for WSBCP a few days ago. I should have known !!! LOL

      I picked up a some a few days ago like you but couldn’t get full fills as there were a bunch of small lot sales.

      Was able to get my final fill today

      1. Mav, I figured it would come back down again. Its likely not running anywhere.
        Its a nice side bar bolt on if one has to be in the game. Im trying to keep more of these types in with the short duration capital protecting stuff we have been beating a dead horse on here, ha.

  28. Hey there, I dipped my wallet https://www.youtube.com/watch?v=V-OYKd8SVrI in another municipal tax free bond to continue to fill in my maturity date ladder:
    Washoe County, Nevada School District General Obligation 3% due 6/1/33 @ $90.92 with a YTC 4.572%, YTM 4.042% rated AA3/AA underlying AA3/AA BAM insured.
    Learning is not attained by chance, it must be sought for with ardor and diligence.
    I am Azure

      1. Interesting that the common dropped way less than the prefA, altho there is at least some chance of not suspending pref while suspending common. Maybe buyers figure it’s easier to hit a homer with a $2 common than a $15 pref???

  29. Tim, there is an issue with the Preferred Master list when you click on Investment Grade.

    1. JB–thanks for the heads up–fixed. I was messing with it recently and screwed it up.

  30. I bought ATH-C (Athene Holding) today at $25. It’s a 6.375% perpetual and split rated Baa3 and BBB. Callable 9/25—3 years from now and the distribution is qualified.

  31. Rithm Capital Corp. Reset Rate Series D Cumulative Preferred Stock
    RITM-D

    Trading all-time low here at $20 handle.

    Current fixed coupon rate is 7%.
    Beginning 11/15/26 rate will be equal to the sum of the U.S. five-year treasury rate (on the applicable fixed rate calculation date) plus 6.223%, resetting every 5 years thereafter.

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