WOW!!! WOW Again!!!!!

This is probably the worst day I have had personally in a while–not so terrible that I am a seller, but instead a bit of a buyer.

I added to my Nextera 5.125% baby bond (NEE-I) as it was one of many investment grade issues taking a hit today. THE BABY–ALL BABIES are being tossed out.

Don’t know if anyone caught the ‘dumps’ in the Ellsworth Growth and Income 5.25% (ECF-A) issue or the Gabelli Dividend and Income Trust 5.25% perpetual (GDV-G)—both issues tossed out by holders–I have orders in for both, but after the initial tumble the ‘ask’ was raised up and no one wants to let me have any. I will leave orders in through the day in case someone wants to give me some shares.

I am getting hammered with the VER-F 6.70% perpetual from VEREIT—I’m holding for now–subject to change of course.

The lodging REIT preferreds are getting hammered lower and lower — WOW!!

Same with mREIT preferreds—WOW AGAIN!!

26 thoughts on “WOW!!! WOW Again!!!!!”

  1. I agree that the panic selling is insane. Preferred of some entites that I expect will do fine living with the Coronavirus, like data centers and cell towers, are even getting hurt. More stay at homes using their media should help these issues; let me know if you think I am incorrect. I just offered only two examples.

  2. ARGO group bonds hit pretty hard as well. Yielding now 7.6%, not bad for an investment grade issue. Virus spreading to each and every sector so insurance too can’t stay healthy.

  3. Although I am also trying to sell a bit to trim the edges and raise cash, many issues are not tradable anymore and are in the region which it is too late to sell (except those that are heading to bk).

    And I am also trying to nibble some bargains, following what I read about Templeton in https://tennesseeindependent.blogspot.com/.

    This is from wikipedia:

    “Sir John Templeton … made his first big contrarian bet in 1939 by buying shares in any U.S. stock trading below one dollar per share. He purchased these equities just as Hitler’s German army was moving across Europe and western pessimism was predominant. That portfolio grew by more than 400% over the next five years.”

    Maybe we can repeat his performance?)

    So today, I succeeded to buy 1 (yes, one!) share of GAB-G @ $24.66 and placed a gtc order to buy a few more @ $23.66 (it is now trading @ $24.3)

    Somehow, even though I invested only $24.66, I am feeling good about it!!!!
    As the markets continue to plummet, I will have lots of fun filling the basket this way. We need to find some enjoyment during these days, need to be patient with the issues we trust and that are beyond sale points, trust this is not (yet) 2008, and know we will sooner or later be happier with most of our hammered positions.

    Thanks for having this website!

    1. You’ll have to accumulate 2 dividend checks to buy a stamp. But it’s a start! 🙂 Timing is notoriously difficult (read “impossible”), but certainly there are (or soon will be) some irresistible bargains.

      [jumping out of preferreds now…]
      I watch the airline commons a bit — American and United both down over 50% in just a few weeks, ETF JETS down almost 50% — golly there’s gonna be a bargain there at some time, because when the virus scare is over, folks will certainly want to fly again.

  4. Nibbling on Bank and Utility prefers. Looking at Interstate Power & Light – nice call. Energy MLP prefers are tempting but think I will pass until US govt decides on how to keep shale oil from completely tanking. I like BAC better than WFC as it doe not go Libor after 1st call date.
    Any other Utilities of interest?

  5. Wow that was fun. Of course I got a bloody nose now. I’m not real smart so I just buy stuff that looks cheap to me. I bought some SOJD $22.37, NRUC $25.09, ENBA $18.04, ATH-B $$21.50, NI-B $24.85, AQNA $24.75, PPX $23.56, IBKCP $24, BPYPO $17.35, and AEL-A $19.50. Maybe not be cheap but they looked cheap to me then my freak out circuit breaker tripped. All done for now. Wall Street crumbling so Fed loading the Huey’s up right now. Hang on, I’m coming. Hard to believe it was only a couple months ago some people were so ginned up downright feisty about it. Oh well.

    1. Good list……That’s representative of what’s happened. This sell off is shades of 2008. I know someone who stepped up last Friday. 4 biz days later some down 20-25%

  6. Finally looking horrid enough to start tapping the dry powder. Nibbled at ALL-H at $23.75 and IPLDP at $24.82 and EAB at $24.22. Don’t think we’ve bottomed yet but have to start sometime.

    1. Have to start sometime, indeed. Hate to miss a sale. Using some dry powder now, but saving some for later. I’m waiting for WFC-Q and -W to drop a tad more… Nabbed a couple of others (like ECF-A) yesterday, but they’re only down a tad today, so I don’t feel too badly.

  7. Many issues are what appears to be cheap prices but we could have said that yesterday too. This is an irrational market that is not acting on the basis of fundamentals. It’s all emotional and earnings and ability to cover dividends mean nothing in this environment. The smoke will not clear until we hit peak coronavirus case count in the US. Until then any buys must be considered speculation even if it’s a top company with impeccable credit quality. ETFs and systematic trading algorithms are running the show. Be careful out there, sitting on one’s hands and doing nothing is a viable strategy too in such an environment unless you are day trading.

    1. agree with you AKJ but also look at it this way: if you are a buy and hold investor living on yield and can get a “safe issue” price/yield now that fits your financial goals, then i say buy it, hold it forever, don’t worry about the share price and let your kids deal with any share loss after you die.

  8. It’s a full fledged mass-a-cree. Need cash! Will offer great terms at 1.5 %, APR, monthly pay, your term. Call now: 800-GOT-CASH?

  9. Just curious: need to ask warren buffet — is it possible to be both greedy and fearful at the same time? cause that’s where i am!
    in terms of today– i just dont see the major banks suspending dividends no matter how bad this gets; it would be a death knell for the economy (IMO). Under par preferreds of big banks look good to me and i do think they will drop further but when the dust settles we are all going to get some good yields.

  10. Picked up some PRH (Prudential) below par, 5.7%, callable, and rated BBB+. Also added to NEE-I and IPLDP positions.

  11. I sold all my energy preferreds back in Dec to clean up for year end. I did own NuStar, in fact I just got my K-1. Incredible where it is trading. I sold it over par just a few months ago. A lot of energy preferreds I sold are over 50% down.

    I didn’t have any psychic insight into all this, sometimes in investing being lucky helps.

  12. VER-F seems like a safe bet, I am assuming we are back to normal eventually and with interest rates near 0 they will redeem these for a lower interest rate. Same with NNN-F.

  13. Try buying the ECF cef itself. Nice dividend, low expenses and leverage, no ROC and big discount to NAV. Plenty of liquidity, too.

    P.S. Also pays a special dividend each year in addition to the quarterly. Last Nov. was 42 cents plus.

  14. Limit orders for a bunch of mine hit this morning

    NCZ-A – almost down to 24 right now
    GDV-G hit at 24.55
    GGZ-A hit at 25
    ECF-A hit at 25.01
    BCV-A hit at 25.28
    LANDP hit at 25.11
    NNN-F hit at 24

    Maybe i jumped the gun too early. We will find out sooner or later

  15. Just sold all my Dillards bonds (be it right or be it wrong) and redeployed all the money into “CFG+D” which 6 weeks ago was selling for $27.92 (Yes, you read that correctly). Got most of my fill at $24.80 and also some at $25.00. Look up the details and I think you will find it to be a very attractive preferred trading at a really good price. The coupon is a 6.35% and not callable till 4/6/2024. Then it changes to a floater of 3.642% plus the 3 month Libor. I don’t spend alot of time worrying about 4 years from now. Most of us just want to get thru this shitstorm over the next 6 months or so.

  16. Is this new? Vanguard gives me the following when trying to purchase more SLMNP…

    “Buy orders are not permitted for securities in the following OTC Markets Group (otcmarkets.com) tiers including Pink Limited Information®, Pink No Information®, Expert Market, Grey Market or classified as Caveat Emptor (buyer beware) by OTC Markets Group (otcmarkets.com). “

    1. It’s fairly recent – you should have gotten a message about it from Vanguard if you have traded grey market or pink market issues before. Check the message box in your Vanguard account on-line.

  17. I would start checking their 2010 lows for the bottom as to where to jump in.
    Some of the $25.00 preferreds were below $10.00 even for companies that were likely to survive.
    Personally, I’ll keep my powder dry because the coronavirus could wipe out earnings at a bunch of companies, causing the E to plummet.
    NuStar’s preferred is one of the top losers of the day..

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