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Old 10-27-2017, 07:22 PM   #2641
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Hey guys, I have a $100 JCP gift card, so I guess I better spend it before Christmas, glad you talked about JCP as otherwise I wouldn't have realized


Sears has been on life support for years and stay hasnt went under....yet.... I bet you can hold off and save the gift card for a while if nothing currently appeals to you, Sunset.
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Old 10-30-2017, 12:13 PM   #2642
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Cleaned out my cash and bought more NSS at $25.16. Have a decent slug now here... Highly suspect this will be called at $25.47 (the interest payment plus par) come Jan. 15. Collect some coin while forcing money in timeout here...Maybe when it is called some selloffs may have occurred. If not I will hold and collect its payment as it goes adjustable at that point.
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Old 10-30-2017, 09:03 PM   #2643
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Cleaned out my cash and bought more NSS at $25.16. Have a decent slug now here... Highly suspect this will be called at $25.47 (the interest payment plus par) come Jan. 15. Collect some coin while forcing money in timeout here...Maybe when it is called some selloffs may have occurred. If not I will hold and collect its payment as it goes adjustable at that point.
Looking at what is being called these days, AFLAC 5.5% (AFSD), Royal Bank of Canada 5.5% (RY-S), and Goldman Sachs 5.95% (GS-I), you would think that these financial institutions believe that long term interest rates are headed lower. This a tale of two markets - Technology, financials, and industrial stocks doing well and many sectors such as retail, energy services, and pharma getting crushed.
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Old 10-30-2017, 09:48 PM   #2644
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Looking at what is being called these days, AFLAC 5.5% (AFSD), Royal Bank of Canada 5.5% (RY-S), and Goldman Sachs 5.95% (GS-I), you would think that these financial institutions believe that long term interest rates are headed lower. This a tale of two markets - Technology, financials, and industrial stocks doing well and many sectors such as retail, energy services, and pharma getting crushed.


Did you see on Quantum what Aflac did to call AFSD? They issued a 2.1% yield 30 year issue in YEN to pay off the US debenture. AFLAC has a significant presence in Japan so I suppose they can just keep that debt overseas and at a substantially lower debt cost. I have pretty much played my hand and will just sit and wait for any of mine to be called...Hopefully none of my QDI illiquids though!
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Old 10-31-2017, 07:38 AM   #2645
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I am the one with a target on my back, I have had 6 issues called the last few months, albeit at a tidy profit. Don't own any Aflac, but had RBofC, RBofS, and GS-I. That's why I bought the AGO, but held it shortly.
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Old 10-31-2017, 07:53 AM   #2646
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I am the one with a target on my back, I have had 6 issues called the last few months, albeit at a tidy profit. Don't own any Aflac, but had RBofC, RBofS, and GS-I. That's why I bought the AGO, but held it shortly.


You blew it the other day, Winemaker...Could have snagged old illiquid UEPCO at $99 for a 5.5% investment grade yield and prompt payments for 60 years running...And a $110 call price that will never happen. That would have been right up your alley...Several hundred shares went by the board on that one.
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Old 10-31-2017, 08:04 AM   #2647
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OHI hit my stops today at $33.50 and automatically sold off. I still made a $2.55 gain over the past 4 weeks plus the $0.63 dividend that will be paid May 15. Bloomberg reported that "The Centers for Medicare & Medicaid Services is considering changing Medicare reimbursement policy and cutting payments to providers with exposure to patients who use the system the most". Heathcare REITS are selling off. I'll wait for the dust to settle before getting back in.
I'm glad I was forced out of OHI a while back. OHI is down to $28.50 today. Many REITS have been selling off. Time to make a shopping list for tax loss selling season.

On another note, A rated bonds/notes and higher were yielding less than FDIC insured CDs of a similar duration. That is starting to unwind. These managers should start using their brains for a change.
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Old 10-31-2017, 08:31 AM   #2648
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I'm glad I was forced out of OHI a while back. OHI is down to $28.50 today. Many REITS have been selling off. Time to make a shopping list for tax loss selling season.

On another note, A rated bonds/notes and higher were yielding less than FDIC insured CDs of a similar duration. That is starting to unwind. These managers should start using their brains for a change.


A rated bonds make preferreds look like they are fairly priced...Connecticut Light and Power recently reopened a 2014 4.3% bond with 2044 maturity at a price of $109! That is sub 4% for 27 years.....
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Old 10-31-2017, 08:32 AM   #2649
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More insanity from Fidelity today:

Fidelity is pleased to announce this week's New Issue Agency / GSE offerings:

Name Coupon Maturity Rating* Call Protected** Price
FFCB 2.77% 11/06/24 Aaa/AA+ NO 100-00
FHLB 3.10% 11/16/27 Aaa/AA+ NO 100-00
FFCB 3.48% 11/08/32 Aaa/AA+ NO 100-00
FFCB 3.58% 11/06/37 Aaa/AA+ NO 100-00

Just buy CDs instead
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Old 10-31-2017, 08:53 AM   #2650
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Do you guys think CHSCM is too expensive right now? It's around $27.3. I calculate YTC at about 5.1%.
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Old 10-31-2017, 09:33 AM   #2651
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A rated bonds make preferreds look like they are fairly priced...Connecticut Light and Power recently reopened a 2014 4.3% bond with 2044 maturity at a price of $109! That is sub 4% for 27 years.....
This is going to force me and others to day trade equities with available cash. BTW there was an article on Seeking Alpha regarding AGO-E. The spike was a result of a re-balancing of PFF. So PFF rules the preferred share world - or at least can impact short term pricing of securities.
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Old 10-31-2017, 10:21 AM   #2652
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Do you guys think CHSCM is too expensive right now? It's around $27.3. I calculate YTC at about 5.1%.

I own CHSCM, as well as CHSCO and CHSCL.

The commodity sector has been in the doldrums for a couple of years now, and CHS has been affected like everyone else in that sector.

Hopefully, things will improve going forward, but I have been satisfied with the stock price performance through this difficult period - they have been less volatile than their peers.

The failure of their fertilizer plant project and its abandonment ( they went for a JV instead ), is behind them ( as is the exec who championed the deal ), so we can hope for clear skies ahead if prices for commodities and fertilizer rise.

As you know, CHSCM is a Fixed-to-Floating issue, so that could imply a fluctuating yield in future.

But, overall, I feel the CHS preferred Issues are safe and should provide a reliable income stream.

FWIW
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Old 10-31-2017, 12:04 PM   #2653
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I watch the CHS issues, and if price was right would get back in them, but no hurry as I really have nothing to sell to buy them...I would caution CHSCM as a total 100% bogus adjustable preferred... Remember its capped at 8% off par...Buying today, the best yield you could ever get from it at that point is 7.31% at todays price, never higher when it became adjustable. And the call risk loss would still be there also at that time.
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Old 10-31-2017, 12:06 PM   #2654
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Thanks Coolius and Mully for your thoughts. Good stuff.


Mully, even if it gets called in 7 years, 5.1% YTC isn't a bad consolation prize, right?
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Old 10-31-2017, 12:11 PM   #2655
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Thanks Coolius and Mully for your thoughts. Good stuff.


Mully, even if it gets called in 7 years, 5.1% YTC isn't a bad consolation prize, right?


Actually Brokrken, I wouldnt mind a few 5.1% , 7 year term issued QDI issues in my fold. This may be wishful thinking, but several of those CHS issues are market liquid. So if a market selloff occurs they will swoon too. I remember this happening a few times and would like a chance again... Who knows when though...
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Old 10-31-2017, 01:23 PM   #2656
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I watch the CHS issues, and if price was right would get back in them, but no hurry as I really have nothing to sell to buy them...I would caution CHSCM as a total 100% bogus adjustable preferred... Remember its capped at 8% off par...Buying today, the best yield you could ever get from it at that point is 7.31% at todays price, never higher when it became adjustable. And the call risk loss would still be there also at that time.

Very true about the "bogus " adjustable yield - cap is set at 8%, so if US Treasuries shoot up significantly, one could be stuck at a 8% capped yield.

However, my goal for CHSCM is to sell it well before the adjustable rate kicks in, that's several years away, so I don't spend time pondering that. Might not even be around at that time, and my heirs make the decision for themselves then.
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Old 11-01-2017, 02:35 PM   #2657
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Finally got back into AILLL today at 26.50. Have all of the SPLP-T I can handle as well.
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Old 11-01-2017, 05:41 PM   #2658
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CHSCM is sellable when it hits $29. Then buy it back when it pulls back to near $25.
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Old 11-01-2017, 06:27 PM   #2659
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Unbelievable! JPM-D (perpetual)is being called. This was a $1.3B issue with a 5.5% coupon. This is going to cause other financial preferred stocks to be pulled higher as funds re-balance. The banks must know something about where interest rates are heading (flat to lower) otherwise this call makes not sense. I own 4500 of JPM-H (purchased at $24.60) and have call protection to 9/2020.
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Old 11-01-2017, 06:49 PM   #2660
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Preferred Stock Investing-The Good , The Bad and The In Between

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Unbelievable! JPM-D (perpetual)is being called. This was a $1.3B issue with a 5.5% coupon. This is going to cause other financial preferred stocks to be pulled higher as funds re-balance. The banks must know something about where interest rates are heading (flat to lower) otherwise this call makes not sense. I own 4500 of JPM-H (purchased at $24.60) and have call protection to 9/2020.


These are only issued for reasons of capital reserve ratio regulations. Its possible they don’t need as much capital in reserve
and not making a value judgement on rates. My theory of buying old higher yielding tiny float preferreds has definitely paid off over the years. I have only had one call on me this year and that was TCF-B that I knew would likely be called but there was some meat on the bone to pick off.
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