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Old 01-13-2023, 05:04 PM   #801
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^^^ I read it as being revised quarterly. IOW, on Apr 15, 2023 we'll get interest for Jan 16, 2023 to Apr 15, 2023 based on three-month libor on Jan 15 2023 plus 3.175% and that on July 15, 2023 we'll get interest for Apr 16, 2023 to Jul 15, 3023 based on the Apr 15, 2023 libor plus 3.175%, etc.
I'm doubting this remains outstanding until July, but unless something changes the 3ML rate ceases as of June 30, 2023. So the July reset rate and future will be different. SOFR to replace but haven't seen any official on how that will be adjusted. Current 3MS is 3.81 while 4.81. Something to be aware of with any issues resetting with 3ML.
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Old 01-13-2023, 05:13 PM   #802
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Yes, I was aware that 3ML was being replaced but didn't want to make the explanation more complicated than necessary.
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Preferred Stock Investing-The Good , The Bad and The In Between 2021
Old 01-13-2023, 05:41 PM   #803
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I'm doubting this remains outstanding until July, but unless something changes the 3ML rate ceases as of June 30, 2023. So the July reset rate and future will be different. SOFR to replace but haven't seen any official on how that will be adjusted. Current 3MS is 3.81 while 4.81. Something to be aware of with any issues resetting with 3ML.


What was proposed I have seen is 3 month TERM SOFR. This is different and higher. Its supposed to be 3 MT Sofr which is about 4.6 plus a 26 bps additional adjustment. So its been pretty tight with 3 ML. Im with PB and think it wont be long for life. Allstates preferreds are sub 6% and their debt even lower. They have options if they wish to pursue. Im treating it as a HY ST own. Milk it while I can.

https://www.cmegroup.com/market-data...term-sofr.html
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Old 01-13-2023, 05:52 PM   #804
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What was proposed I have seen is 3 month TERM SOFR. This is different and higher. Its supposed to be 3 MT Sofr which is about 4.6 plus a 26 bps additional adjustment. So its been pretty tight with 3 ML. Im with PB and think it wont be long for life. Allstates preferreds are sub 6% and their debt even lower. They have options if they wish to pursue. Im treating it as a HY ST own. Milk it while I can.

https://www.cmegroup.com/market-data...term-sofr.html
Thanks Mulli. I figure they'll need to make it somewhat equivalent, at least from the inception. If ST hold that's fine, if not that's fine too.
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Old 01-13-2023, 06:06 PM   #805
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Thanks Mulli. I figure they'll need to make it somewhat equivalent, at least from the inception. If ST hold that's fine, if not that's fine too.


Bob this stuff is all kind of iffy though. This substitute is supposed to give legal cover for Libor based contracts that dont have a back up. This issue ultimately has a back up….Last reported Libor rate. That would make it essentially fixed when Libor ceases. I have no idea if it gets converted, follows “last reported Libor”, or just gets redeemed before it even happens. I really havent heard any company saying anything about their Libor issues yet.
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Old 01-14-2023, 11:19 AM   #806
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Mulligan - just wanted to thank you for the Spire 5.9% Pr A recommendation. I started to leg in on this 12/13 @ 23.12 and got some as low as $22.58. Yesterday, I trimmed some at $25.08, mostly because of a bird in the hand philosophy.
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Old 01-15-2023, 09:23 PM   #807
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Mulligan - just wanted to thank you for the Spire 5.9% Pr A recommendation. I started to leg in on this 12/13 @ 23.12 and got some as low as $22.58. Yesterday, I trimmed some at $25.08, mostly because of a bird in the hand philosophy.


Congrats, I was about to pull plug where you did and got greedy and it shot back up. Dont blame you for trimming. Its above par and trading where it was issued yet rates are considerably higher.
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Old 01-19-2023, 07:35 AM   #808
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Is it late to get into ALL-B? Would ALL-B be a better option in my Fidelity cash management account. Currently I have $35K invested in Fidelity Money Market fund SPRXX.
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Old 01-19-2023, 05:22 PM   #809
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Is it late to get into ALL-B? Would ALL-B be a better option in my Fidelity cash management account. Currently I have $35K invested in Fidelity Money Market fund SPRXX.


It ended 25.10 today. May watch and see if it sags. It will pay almost a 50 cent interest payment after going exD end of March… If its not redeemed. If 30 day call notice went out tomm, one would get around 17 cents.
Its a hard comparison because it depends on if or when Allstate redeems. Plus ALL-B is exposed to market risk which a money market is not. Sorry I dont have a good answer.
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Old 01-20-2023, 11:54 AM   #810
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SOFR seems to about a percent lower than LIBOR. C and GS also have some preferreds that will float later in the year. Some of these issuers could be speculating that SOFR/LIBOR will head back down if we go into a recession. I think both were under 1% less than a year ago.

Of course if rates fall, prices will rise, but in that case, the fixed-rate preferreds might be more attractive.
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Old 01-20-2023, 04:51 PM   #811
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SOFR seems to about a percent lower than LIBOR. C and GS also have some preferreds that will float later in the year. Some of these issuers could be speculating that SOFR/LIBOR will head back down if we go into a recession. I think both were under 1% less than a year ago.

Of course if rates fall, prices will rise, but in that case, the fixed-rate preferreds might be more attractive.


Remember its 3 month TERM SOFR. Presently its 4.65% plus there is a 26 bps adjustment. At least that is what is proposed.

https://www.cmegroup.com/market-data...SAAEgKpf_D_BwE
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Old 01-23-2023, 04:16 PM   #812
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Mulligan - PLDGP down a little after earnings.

OK to add more or just hold for the nice Div?

Do you have a buy point?
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Old 01-23-2023, 09:58 PM   #813
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Mulligan - PLDGP down a little after earnings.



OK to add more or just hold for the nice Div?



Do you have a buy point?


I have already sold which I bought MAA-I and then sold it. With PLDGP at current price its about 5% YTC. There just isnt a lot of upside here. But that is a personal preference. One can get 4.7% one year CDs. My personal preference is to scratch out more yield, but there is no right or wrong, just what your expectations and goals are owning.
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