Preferred Stock Investing-The Good , The Bad and The In Between 2021

[bobandsherry]

Quote:

Originally Posted by Mulligan I have Vanguard and TD, and they will never have any $1000 preferreds available to buy online. It always has to be a call in.

This was the PPL Bond, not a preferred.

[Texas Proud]

Quote:

Originally Posted by Mulligan I have Vanguard and TD, and they will never have any $1000 preferreds available to buy online. It always has to be a call in.

These are bonds from what I understand, not preferred. But I will give them a call and see what it takes to get some.

[bobandsherry]

Quote:

Originally Posted by Texas Proud Interesting... at Schwab they do not even have any way to input an order... I have to call the bond desk... At Fidelity I was putting in an order but got a message they have none in inventory... and want me to search for a different bond!! But I can see that some are being sold on a depth chart... price has gone up to 93 though.

No idea what Schwab is doing. ETrade showing 21 trades today (see below for late afternoon trades). And I can see these available in my Fidelity account as well.

2023-07-27_16-36-59.jpg

[Texas Proud]

Quote:

Originally Posted by bobandsherry No idea what Schwab is doing. ETrade showing 21 trades today (see below for late afternoon trades). And I can see these available in my Fidelity account as well. Attachment 46628

Yea, I saw the trades but neither had the option for me to buy any... that is without help...


I was a bit surprised that Fidelity said to go find another cusip to buy... at least Schwab gave me a number to call.. will probably call and put in an order at a fixed price and see what happens...

[Mulligan]

Quote:

Originally Posted by Texas Proud These are bonds from what I understand, not preferred. But I will give them a call and see what it takes to get some.

Yes, but they are subordinated notes which are generally given 50% equity credit by credit agencies, just like preferreds are generally given 50% debt credit. The fact its a live floater precludes, any chance of it ever being purchasable online with Vanguard and TD. I have tried to buy several of these including a live floating AllState and SCE as they have them too. And they are never available online either.
These are good issues, but its just too much of a hassle calling it in and being exposed to wide bid ask spreads if I ever wanted to dump, since I have too much already in bonds and CDs. I gots ta have me some trading monies!
I have often thought about calling to ask why, but I know the front line guys wouldnt have a clue. And going through the hassle of getting another brokerage that does is too much effort for this sloth, too, ha.

[Texas Proud]

How do you put in an order to sell a bond with a minimum price? I was going to sell a security that was redeemed so I now own the bond and I cannot put in a price at Vanguard (probably Schwab also)...


The difference between bid and ask would be almost $500... I would rather get that money if possible.. and I can wait for the sale..


AND they still have a charge to trade... got to be careful on buying and selling as you cannot flip them like stocks...

[Mulligan]

Quote:

Originally Posted by Texas Proud How do you put in an order to sell a bond with a minimum price? I was going to sell a security that was redeemed so I now own the bond and I cannot put in a price at Vanguard (probably Schwab also)... The difference between bid and ask would be almost $500... I would rather get that money if possible.. and I can wait for the sale.. AND they still have a charge to trade... got to be careful on buying and selling as you cannot flip them like stocks...

It depends on brokerage. But for me at TD and VG its take it or leave it pricing when trying to sell. So for me, I view a bond purchase as a marriage until death do us part or maturity. Which ever comes first. So my eyes are wide open here. But I dont fear it. I wasnt going to do anymore, but I just couldnt resist today. TD offered 10 bonds of IG ute PECO 2033 5.75% noncallable sub debt issued in 2003 at $94.35. That is about 6.55% YTM regulated subsidiary utility debt. That is as high as I have seen it. I will eat it until 2033 even if yields keep rising.

[Texas Proud]

Quote:

Originally Posted by Mulligan It depends on brokerage. But for me at TD and VG its take it or leave it pricing when trying to sell. So for me, I view a bond purchase as a marriage until death do us part or maturity. Which ever comes first. So my eyes are wide open here. But I dont fear it. I wasnt going to do anymore, but I just couldnt resist today. TD offered 10 bonds of IG ute PECO 2033 5.75% noncallable sub debt issued in 2003 at $94.35. That is about 6.55% YTM regulated subsidiary utility debt. That is as high as I have seen it. I will eat it until 2033 even if yields keep rising.

Thanks for the info. I was thinking that a bit when buying at Schwab, but I was OK with the price and had to know if bought to sell MM for cash. I had thought to try and look to see if I could put in a limit order but never did.


Guess I will take what I can get as it is not yielding as much as I would like with a CCC- rating.

[Affinity4Investing]

Customers Bancorp Non-Cum Perp Pfd Shs Series F raises dividend by 7.1% to $0.6589


Jul. 31, 2023 8:27 AM ETCustomers Bancorp, Inc. PFD NONCUM SER F (CUBI.PF)By: Deepa Sarvaiya, SA News Editor

• Customers Bancorp Non-Cum Perp Pfd Shs Series F (NYSE:CUBI.PF) declares $0.6589/share quarterly dividend, 7.1% increase from prior dividend of $0.6151.
• Forward yield 10.47%
• Payable Sept. 15; for shareholders of record Aug. 31; ex-div Aug. 30.

[Texas Proud]

Lucky that I have a lot of that...

[Texas Proud]

Well, getting my worksheet filled out... still have a way to go but going slowly...


Some observations... my current yield is 8.63%... (excluding a good chunk of change in my cash balance account that I have left at old company) but I am also sitting on a 14% gain on my older investments (I have been investing rollover money the last couple of months so very little gain on that)...


I need to get YTM as I have recently bought some bonds at a big discount as YTM is really good but coupon is not... they do not look as good when comparing yields...


About 30% is not rated... I want to get info on the companies to try and come up with a rating so I can see how junky my holdings are... about 1/3 is IG right now with most of the rest one level down...


I do have NSS at B but pays very well... I do like CPN but do not know why it is junk...

[Affinity4Investing]

Enbridge Declares Quarterly Dividends

CALGARY, AB, Aug. 1, 2023 /CNW/ - Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) announced that its Board of Directors has declared a quarterly dividend of $0.8875 per common share, payable on September 1, 2023 to shareholders of record on August 15, 2023. The amount of the dividend is consistent with the June 1, 2023 dividend.
The Board also declared the following quarterly dividends for Enbridge Inc. Preferred Shares. All dividends are payable on September 1, 2023 to shareholders of record on August 15, 2023. All amounts shown are in Canadian dollars unless otherwise specified.
Common Shares
$0.8875
Preference Shares, Series A
$0.34375
Preference Shares, Series B
$0.32513
Preference Shares, Series D
$0.33825
Preference Shares, Series F
$0.34613
Preference Shares, Series G
$0.43858
Preference Shares, Series H
$0.27350
Preference Shares, Series L
US$0.36612
Preference Shares, Series N
$0.31788
Preference Shares, Series P
$0.27369
Preference Shares, Series R
$0.25456
Preference Shares, Series 1
US$0.41898
Preference Shares, Series 3
$0.23356
Preference Shares, Series 5
US$0.33596
Preference Shares, Series 7
$0.27806
Preference Shares, Series 9
$0.25606
Preference Shares, Series 11
$0.24613
Preference Shares, Series 13
$0.19019
Preference Shares, Series 15
$0.18644
Preference Shares, Series 19
$0.38825

About Enbridge Inc.

At Enbridge, we safely connect millions of people to the energy they rely on every day, fueling quality of life through our North American natural gas, oil or renewable power networks and our growing European offshore wind portfolio. We're investing in modern energy delivery infrastructure to sustain access to secure, affordable energy and building on two decades of experience in renewable energy to advance new technologies including wind and solar power, hydrogen, renewable natural gas and carbon capture and storage. We're committed to reducing the carbon footprint of the energy we deliver, and to achieving net zero greenhouse gas emissions by 2050. Headquartered in Calgary, Alberta, Enbridge's common shares trade under the symbol ENB on the Toronto (TSX) and New York (NYSE) stock exchanges. To learn more, visit us at enbridge.com.

[braumeister]

Quote:

Originally Posted by Affinity4Investing Enbridge Declares Quarterly Dividends

Copy/pasting a press release without even a personal comment is hardly a worthwhile use of the forum.

As a new member, you have been an unusually prolific poster, but haven't said much.

We like new members to introduce themselves and tell us a bit. Why are you here at this forum? It's not clear so far.

This is where you should start:
https://www.early-retirement.org/forums/f26/

[Affinity4Investing]

Hello,


As you suggested, here is the link to an introduction...


https://www.early-retirement.org/for...ml#post2965446

[Mulligan]

Quote:

Originally Posted by Texas Proud Well, getting my worksheet filled out... still have a way to go but going slowly... Some observations... my current yield is 8.63%... (excluding a good chunk of change in my cash balance account that I have left at old company) but I am also sitting on a 14% gain on my older investments (I have been investing rollover money the last couple of months so very little gain on that)... I need to get YTM as I have recently bought some bonds at a big discount as YTM is really good but coupon is not... they do not look as good when comparing yields... About 30% is not rated... I want to get info on the companies to try and come up with a rating so I can see how junky my holdings are... about 1/3 is IG right now with most of the rest one level down... I do have NSS at B but pays very well... I do like CPN but do not know why it is junk...

Tex, remember “junky” can be a relative term. If you own stuff like true preferreds or subordinated debt, you may want to just see what their senior unsecured debt rating is. For example, ALL-B. Its going to show BB+ plus as “junk”. But its higher stack debt is well above IG status. Im personally losing no sleep over ALL-B. AllState will be insuring cockroaches after the human race is gone. With an issue like ALL-B your main concern is AllState staying out of bankruptcy which I lose no sleep over. The other concern would be getting out if Fed cut substantially the Funds rate which isnt a near term concern either.

[Texas Proud]

Quote:

Originally Posted by Mulligan Tex, remember “junky” can be a relative term. If you own stuff like true preferreds or subordinated debt, you may want to just see what their senior unsecured debt rating is. For example, ALL-B. Its going to show BB+ plus as “junk”. But its higher stack debt is well above IG status. Im personally losing no sleep over ALL-B. AllState will be insuring cockroaches after the human race is gone. With an issue like ALL-B your main concern is AllState staying out of bankruptcy which I lose no sleep over. The other concern would be getting out if Fed cut substantially the Funds rate which isnt a near term concern either.

Yea, that is something that I want to do... especially for the ones with no ratings... I would like to get a feel for what it might be... just looked and Allstate debt is rated A-...


Opps... All-B is shown as BBB somewhere as I have that down on my table... probably Schwab..




Is there any particular site you look at? I do Quantumonline but not much except other preferred or baby bonds...

[Mulligan]

Quote:

Originally Posted by Texas Proud Yea, that is something that I want to do... especially for the ones with no ratings... I would like to get a feel for what it might be... just looked and Allstate debt is rated A-... Opps... All-B is shown as BBB somewhere as I have that down on my table... probably Schwab.. Is there any particular site you look at? I do Quantumonline but not much except other preferred or baby bonds...

You know Tex, I might need to walk that back a tick. Fitch recently downgraded their debt and their preferreds are BB+ now instead of IG. ALL-B likely is still BBB- though it wasnt mentioned. They are going through a down cycle with all the claims they are paying. But it will cycle back as they are jacking up rates too.
I dont like too much junk either, but will except some if the debt above it is IG though.

[pb4uski]

Schwab shows ALL/PRB with ratings of BBB from S&P and Baa1 from Moody's.

[Mulligan]

Quote:

Originally Posted by pb4uski Schwab shows ALL/PRB with ratings of BBB from S&P and Baa1 from Moody's.

Moodys has them under negative watch, so its possible they follow suite with Fitch. P&C industry has taken on some water in the boat this year. AllState really wasnt a good example that I should have used. A better example is say KMPB. Its a BB+ subordinate note in junk territory, but its senior unsecured is still lower IG status.

[Montecfo]

Quote:

Originally Posted by Mulligan I dont like too much junk either, but will except some if the debt above it is IG though.

Mulligan, can you walk through your logic here? It sounded good then first time I read it but what dynamic tied to the higher stack adds to confidence?

I guess that debt appears unlikely to fall into default, therefore lower rates preferreds unlikely to be pressured?