Banker US Bancorp (USB) has priced their new issue of non-cumulative preferred stock.
The issue priced at 4.00%. The issue is strongly investment grade and qualified.
The issue will trade immediately under OTC ticker USBML
The pricing term sheet can be read here.
Its funny…I know most people here have been at this longer then I…..I too can remember 5%-6%+ interest rates on both Preferreds and ordinary Money Market accounts. But 12 years later what can you do. We are literally back where we started if not worse and only to get worse in the future. So as I said in a previous post, I see anything above .05% as a gift and 3.75% to 4.25% as almost miraculous. At the end of the day its about income but more even more importantly capital preservation and at least so far, Preferreds have provided that niche. During these 12 years my investment income, mostly fixed income has literally droped over 20% ….but still no complaints at 4%+
Yes, Richard, I agree. The only thing I care about is income. For me, that’s largely been MLPs, mainly EPD. Despite the optics, Biden is not going to kill oil and gas. Midterms are less than 2 years away. That’s a major roadblock. You can’t do anything if you don’t win elections. The Green New Dealers are leading him down a path toward despair. The US can’t fix climate change by itself. What about China and all those Third World Countries yearning for our lifestyle? That takes energy and they’re building coal plants faster than we can mothball ours.
So what? So, if you want income, look to MLPs, especially EPD, the best of the breed.
My money is where my mouth is.
JMO
Hi Camroc…..hard to reply without violating the “no politics” rule. But I do agree, the US Energy infrastructure is under attack by a mob that knows nothing about generating and distributing 100 quadrillion Btu/year. I thought it was interesting that when this minor polar vortex recently hit, almost all wind power in Europe was brought to a halt and the governments there had an energy crunch/crises on their hands.
I haven’t gone in for MLPs, instead I chose what I thought was the safer route of pipeline companies, Enbridge and TC Energy specifically through their Canadian Rate Reset Preferred Shares. And of course the year started off with the cancelation of the XL pipeline. Hard to know what’s really safe when insanity, disinformation and self destruction seem to be the only criteria for setting national policy
I was shaking my head when I bought BAC.O at 4.375% last year but I also got a 100 today for kicks because even at 4%, it makes 10 times more than the 100K in a bank account.
Thank you, Tim.
Just bought 100 shares at $24.63…..USB seems to be the Rodney Dangerfield of high quality Preferreds…..its share price gets no respect