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

[Mulligan]

Thanks for pointing this out.
I hadn't thought of it this way, that my current rate is 8.7% but will lose $5.5 when called, so even at 4 yrs out, that really pulls down the YTC rate.

Sunset, That being said, assuming a non chaotic market, issues like this one wont descend in a corresponding manner. Typically that start crushing you with painful drops on exD and no recovery the last 2 years or so before call. So you have time to reflect on it for awhile I believe.

 

[brokrken]

What's everyone's line-up these days. I need some new ideas. I'm currently holding ATCO-G (old SSW), GLP-A, MS-F, NSS, NYCB-U, OTRKP, RILYZ, TBB

 

[aja8888]

What's everyone's line-up these days. I need some new ideas. I'm currently holding ATCO-G (old SSW), GLP-A, MS-F, NSS, NYCB-U, OTRKP, RILYZ, TBB

This:

CHS (CHSCM)
TDE
AILLL
KTN
NISOP
SJIJ
Spire Inc
IPLDP

 

[Sunset]

....... Just be careful with the number button punching when you get older. My dad was trying to buy some IPWLK 5-6 years ago, while I was visiting. And buy order wasnt going through and he didnt know why...I looked and said, “Dad it isnt going through because you are trying to buy $5 million dollars worth of it. You dont even have a million in the account.” Too many zeroes, lol.

I almost did something similar today.
Selling 100 WCC-A , I punched in sell for $3.099 instead of $30.99

Fortunately I saw it before I clicked sell ...

 

[Sunset]

What's everyone's line-up these days. I need some new ideas. I'm currently holding ATCO-G (old SSW), GLP-A, MS-F, NSS, NYCB-U, OTRKP, RILYZ, TBB

I have:
NSS, CNTHP, WCC-A , EBBNF , SPLP-A

My problem is I'm lazy or more of a buy and hold investor.

 

[pb4uski]

what's everyone's line-up these days. I need some new ideas. I'm currently holding atco-g (old ssw), glp-a, ms-f, nss, nycb-u, otrkp, rilyz, tbb

acglp, ago-b, ahl-d, altgf, bac-m, bamh, bsa, bxs-a, cbklp, cof-j, duk-a, enb.pf.u, gainl, gjh, gs-d, hig-g, htlfp, ipldp, ipwlk, jpm-h, met-e, mnr-c, pbc, pcg-d, pre-h, puk-, rnr-e, rzb, sce-l, schw-c, slmnp, tcbip, tfc-f, wfc-z

ETA: For some reason, when I "Submit Reply" all the caps are changed to lower case.... for not only my post but also the quoted post. Wierd.

 

[RE2Boys]

chscm, cnlpl, cnthp,agmprf, ipldp,lando, mnrpc, qrtep, sjij, tda, uepep, uza

 

[Winemaker]

aline, arrc, atcod, inne, nnnf, nymto, rlja, tannz, tfcc, ubpp, cdrb, ctbb, dcpb, gsa, merk, mnrc, splpa, wfcx, nymtp, gmlpp, kiml, mdlx, wfcp just to name a few.

 

[Mulligan]

You asked for it! Some are holders, some are flippers, and some were meant to be holders that became flippers, and some I buy and sell over and over in a years time...
AILLM, AILLN, AILIM, CEQP-, CNIGP, FPI-B, HAWLI, IPLDP, NSARO, NYCB-U, PCG-A, PPWLO, PPX, PRIF-D, QRTEP, SBNCM, SCCC, SESCF, SLMNP, TDE, UZA, VNORP, WTREP....
Some thoughts... Rates are drifting higher which typically puts pressure on low yielding IG perpetuals.
Liquid 4% perpetuals are at most risk...
A few ideas... PPX is down to 25.37 (one interest payment above par). Past call You get 5.8% BBB rated subordinated debt... It was issued in 2013 with a 1.9% 10 year and BB+ rating.. Yes it could get called but who cares, milk the cow as long as it goes or flip right before going exAd when it rises...
CEQP-, Noncallable 10.5% preferred. Middling quality but I like this as a high risk bucket play, but I renetered around $7.50 and have a divi in hand too..Its a K-1 though.
QRTEP is around par 8%. QRTEA (QVC) has been doing well. Sweet 2031 maturity date and nice protective covenants. John Malone owns an ass load, too.
SESCF is past first call and 2027 maturity near par. Was going to be redeemed then backed off from Covid. Seaspan is doing fine.
WTREP...WTRE is getting acquired and preferred may or may not stay outstanding. Who cares at $25.32 if you sit on it. Goes exD next month and acquisition isnt complete yet..
I reentered TDE today at $25.09. Your getting 6.8% off BB debt, and it has basically a new twin sister UZE with 5.5% par yield at 25.10. TDS owns USM...

 

[bobandsherry]

My list is a bit shorter than it's been, made decision to get into equities to ride the lift up in the market and also considering yields and possible call on some issues. Here's what I'm still holding.

CEQP-, CHMI-B, CMRE-C, EP-C, GMLPP, NYCB-U, QRTEP, UZC

 

[bobandsherry]

WTREP...WTRE is getting acquired and preferred may or may not stay outstanding. Who cares at $25.32 if you sit on it. Goes exD next month and acquisition isnt complete yet..

Hey Mulli - according to Quantum, WTREP is now (as of 6/30/19) floating at 3mo LIBOR + 6.6785%. 3ML is 0.18863% today, so if my math is correct that would drop the div to about 43 cents if repriced today, currently paying 48 cents (7.75%). I don't see the IPO on this, do you know if there there is a floor? If not, next dividend seems it will be much lower. But then not sure how it's paying the 48 cents as of last dividend.

 

[Mulligan]

Hey Mulli - according to Quantum, WTREP is now (as of 6/30/19) floating at 3mo LIBOR + 6.6785%. 3ML is 0.18863% today, so if my math is correct that would drop the div to about 43 cents if repriced today, currently paying 48 cents (7.75%). I don't see the IPO on this, do you know if there there is a floor? If not, next dividend seems it will be much lower. But then not sure how it's paying the 48 cents as of last dividend.

Yes, Bob its already floating, but the cool thing is it has a minimum 1% Libor floor, so the yield is still very strong. The merger will complete sometime first half of year but next divi is in the bag...If they drag their heels on a call (they kind of imply that would happen in SEC filings, but no guarantee) that just makes it even better. A great place to hide out to see if preferreds reset in pricing.

 

[bobandsherry]

Yes, Bob its already floating, but the cool thing is it has a minimum 1% Libor floor, so the yield is still very strong. The merger will complete sometime first half of year but next divi is in the bag...If they drag their heels on a call (they kind of imply that would happen in SEC filings, but no guarantee) that just makes it even better. A great place to hide out to see if preferreds reset in pricing.

Ah, then that explains it. Thanks.

 

[brokrken]

Thanks guys, Picked up some TDE yesterday and PPX and QRTEP this morning to add to the preferred/baby bond bucket

 

[aja8888]

I have new orders in for UZE and EP/PRC. Still refilling the bucket. I need to have enough dividends to offset my RMD pulls!

Thanks for all the tips given out in this thread!

Edit: Picked up 77 EP/PRC @ $50.20 before it took off again.

 

[Mulligan]

I have new orders in for UZE and EP/PRC. Still refilling the bucket. I need to have enough dividends to offset my RMD pulls!

Thanks for all the tips given out in this thread!

Aja, Im just throwing this out there, but why not jump on TDE or UZA instead of UZE. UZE will face pressure if rates on long end keeps rising. Even if the former 2 are redeemed down the road, the likelihood of UZE being much higher is minimal.

 

[brokrken]

Mully, when is the record date on QRTEP? It isn't clear on Quantum. Am I going to get the March divy?

 

[Mulligan]

Mully, when is the record date on QRTEP? It isn't clear on Quantum. Am I going to get the March divy?

Ken, I dont think its been declared yet. ExD will be sometime at the end of this month. Buying this week will be no problem in collecting next divi.

 

[bobandsherry]

Aja, Im just throwing this out there, but why not jump on TDE or UZA instead of UZE. UZE will face pressure if rates on long end keeps rising. Even if the former 2 are redeemed down the road, the likelihood of UZE being much higher is minimal.

Any reason you wouldn't look at UZC or even UZB instead? I know maybe slightly higher chance of call, but both issues same coupon rate, so chances of both called 25 basis points on the div yield as call premium.

 

[aja8888]

Aja, Im just throwing this out there, but why not jump on TDE or UZA instead of UZE. UZE will face pressure if rates on long end keeps rising. Even if the former 2 are redeemed down the road, the likelihood of UZE being much higher is minimal.

I did pick up 300 TDE yesterday. On UZE I went off your post of yesterday as it was one you mentioned on the big list you posted. You didn't say much about it though. I did pick it up for $25.10.

I reentered TDE today at $25.09. Your getting 6.8% off BB debt, and it has basically a new twin sister UZE with 5.5% par yield at 25.10.

Also, you stated "QRTEP is around par 8%. QRTEA (QVC) has been doing well. Sweet 2031 maturity date and nice protective covenants. John Malone owns an ass load, too."

QRTEA is not found? Is that the right symbol?

 

[Mulligan]

I did pick up 300 TDE yesterday. On UZE I went off your post of yesterday as it was one you mentioned on the big list you posted. You didn't say much about it though. I did pick it up for $25.10.







Also, you stated "QRTEP is around par 8%. QRTEA (QVC) has been doing well. Sweet 2031 maturity date and nice protective covenants. John Malone owns an ass load, too."



QRTEA is not found? Is that the right symbol?

Aja, Clarification post, lol...I was using UZE as a reason to buy UZA or TDE...But not UZE. UZE has same standing as UZA but is over 100 bps lower in yield. UZE will drop hard on higher rates while TDE and UZA have price protection because their yield is so much higher.
QRTEA is the common stock ticker for Qurate (think QVC). QRTEP is the perferred under QRTEA.

 

[pb4uski]

I found this: https://www.marketwatch.com/investing/stock/qrtea

 

[brokrken]

Aja, I believe QRTEA is the common and QRTEP is the preferred

 

[aja8888]

Aja, Clarification post, lol...I was using UZE as a reason to buy UZA or TDE...But not UZE. UZE has same standing as UZA but is over 100 bps lower in yield. UZE will drop hard on higher rates while TDE and UZA have price protection because their yield is so much higher.
QRTEA is the common stock ticker for Qurate (think QVC). QRTEP is the perferred under QRTEA.

Aja, I believe QRTEA is the common and QRTEP is the preferred

Thanks!

I placed an order to buy QRTEP @$100.10. Filling up the div bucket.

 

[Born2Fish]

EP-C, MNR-C, QRTEP.

I added PPX and IPLDP today.

Wouldn't mind picking up a few more.