Below I just toss out some items mentioned this week in the 100’s of comments made by readers. Some of these known items have been known–some not.
B Riley (RILY) has made a full call on the 7.25% RILYG notes. The press release is here with the details.
Assured Guaranty (AGO) makes a full call on AGO-B and a partial call on AGO-E. AGO-B took a hard pounding as it was trading in the $26.75 area–now at $25.39.
Great Elm Capital (GECC) calls 6.50% notes (GECCL) effective 7/23/2021. The press release is here.
The new 6.375% perpetual preferred from Arbor Realty Trust (ABR-D) which had risen shortly after issuance to the $25.70 area dropped back to the $25.25 area. This note in Reader Initiated Alerts allowed me to get in at a favorable price.
UMH-C 6.75% perpetual traded way up to $26.40 and is redeemable in about a year so some folks unloaded shares.
Star Bulk Carrier (SBLK) announced a full redemption of their 8.3% notes (SBLKZ) which have a maturity in 2022. The call is effective 7/30/2021.
To “NWGG”. A big THANK YOU goes out to you for the 2 links. I read every single comment. My only follow up comment would be very few comments on the actual financial strength of the company itself. Their website bloveates how strong and successful they are but we all know thats what you would expect from a companies homepage-LOL. Again I do like the industry they are in and it seems they are doing good things at the moment. THANK YOU again.
Fair enough. Here are two professional opinions of financial strength. Remember that the S&P Global Rating is on a Rule 144A ABS debt issue for a five year term, if I read it correctly, and not a preferred. The SA article talks about the common mostly. So you have to kinda put 2+2 together to come up with your own conclusion. I did notice that Tim rated TGHA at a “C” rating.
FWIW – I personally owned GSLD and sold it last week at a profit as I originally bought below par. I bought SBBA at 25.01 as a substitute for GSLD. We’ll see how it goes with SBBA.
https://www.spglobal.com/_assets/documents/ratings/research/11596981.pdf
https://seekingalpha.com/article/4431887-textainers-price-reaches-parity-with-peers
NWGG; Thank You for the 2 links. The article by Byron Clarke was extremely interesting. Iam going to have to spend more time over at S & P Global as that gets pretty time consuming. Wish there was a way to trade email address’s as I would love to correspond with you as I can tell you are on top of the game quite well. I’ve been at this old game for over 45 years but still learn something new all the time. THANK YOU AGAIN.
NWGG: Curious why you bailed on GSLD. Do you expect a call at the end of the year or just profit taking?
I go by several guides when I buy/sell. I try not to buy above par, but sometimes will pay the extra penny if need be. I also try to buy “the best available”. I bought GSLD on 11/6/20 at 24.25 because it had a short maturity, high coupon, and what I thought was the best available shipper at the time even though they all pretty much sucked except maybe ATCO IMHO.
I sold on 6/21/21 at 25.9475. I like to sell above par especially when I can get a years worth of dividends up front after I “Hoovered” up that last divvy.
The common shares of the shippers in general have done extremely well as of late. My gut feeling is that we are nearing a cycle top for this sector or at least a consolidation. I bought when this sector stunk and now that the “market” is keen to their recent fortune it has resulted in bidding up the sector’s shares. It is prudent to move on.
I also like to replace what I sell if possible, so I saw that SBBA was selling under par and at par then a penny above par, so I picked some of these up instead. I thought they where the best available right now based on valuation and compared to its peers (not the stronger shippers).
Look at TGH. They sold that preferred and then bough back common. Why? Because they can. If you look at the S&P Global the rating is for one of their subs and not the parent. It looked there were two debt tranches as well with one having a lower IG rating.
Keep in mind that with GSLD, there call starting in 12/31/21 is at 25.50, then ticks down to 25.25, then to 25. In my opinion, this is a nice feature. If it is called an the end of this year, there is a 0.50 cap gain. Also – this tend to have the effect of “pinning” the value to the call value (short of a complete market fallout). BTW – I also picked on some SBBA as well. I think the shippers have some time left (1-2 years) but need to be watched carefully.
BTW – I don’t disagree with the choice to sell and lock in a year’s worth of divi’s. The challenge though is finding something to replace it with.
I likewise rotated out of GSLD, myself. I rotated into GS-B flipped it then bought it back. Still own as I believe the note gets redeemed first. I also bought SBBA. It also has an early redemption penalty payment that protects it (or at least higher payout) near term. Im no fan of shippers but I own several now. I prefer containership and dry bulk. SBBA is in the weaker oil segment, but it is what it is.
Hello Tim; Since this is a mixture of different things I was wondering have you or others ever done any homework on TGH+A ?? I like the industry they are in as its in high demand (atleast at the moment) but have been having somewhat of a difficult time to find any of the great details as to if its even worth looking into. I assume you are comfortable with the Arbor preferred even though its an industry that I myself have tried to avoid. Thanks to how these things can sink like the Titantic if this variant should rear its ugly head again. I feel that we have reached that point where its nearly impossible to find something of good value and still keep a reasonably high degree of quality.
Hi CP,
There were some past lively debate on this issue on the board.
Here are the links if you would like to take a look see;
https://innovativeincomeinvestor.com/textainer-group-prices-new-preferred/
https://innovativeincomeinvestor.com/textainer-group-holdings-to-sell-new-preferred/