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12-31-2022, 05:59 PM
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#781
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Recycles dryer sheets
Join Date: Jul 2020
Posts: 180
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Thanks to Mulligan's numerous posts touting the virtues of utes, I've been keeping an eye out for utes perpetual preferreds. Just recently bought SOCGP at par and CNLPL below $53. I believe they are as safe as any IG 6% corporate bonds. Am I wrong?
I am really tempted to buy PCG-A which is trading at around $20 or 7.5%. Can't blame PG&E for every wild fire. I am also a captive customer. For even higher yields, I prefer selling puts and call options at this time.
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01-01-2023, 10:23 AM
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#782
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2009
Posts: 9,343
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Quote:
Originally Posted by tutan
Thanks to Mulligan's numerous posts touting the virtues of utes, I've been keeping an eye out for utes perpetual preferreds. Just recently bought SOCGP at par and CNLPL below $53. I believe they are as safe as any IG 6% corporate bonds. Am I wrong?
I am really tempted to buy PCG-A which is trading at around $20 or 7.5%. Can't blame PG&E for every wild fire. I am also a captive customer. For even higher yields, I prefer selling puts and call options at this time.
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I have traded them myself, but dont presently own. I have too much SCE/EIX already at present moment, ha.
CNL preferreds are basically bonds anyways. They are a minute total of their cap stack. Maybe around 60 million in total par value…If they can afford the bond payment they can cover the preferreds too.
Im assuming market has factored in the yield increase expectations going forward. So I am fine there. What concerns me is a different shoe to fall. Credit spreads widening. They really havent at all, yet. And if a recession comes credit spreads always widen and that would put more pressure on perpetual preferreds.
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01-02-2023, 10:46 AM
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#783
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Recycles dryer sheets
Join Date: Jul 2020
Posts: 180
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Thanks. It has been hard for me to keep track of individual stocks all the time, especially those that are supposed to go in the sock drawer, so I’d better not get into too many of them. But if I miss the chance to sell them at a good price, I’ll just keep on collecting that 5-6% indefinitely.
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01-06-2023, 04:27 PM
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#784
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2009
Posts: 9,343
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Quote:
Originally Posted by tutan
Thanks. It has been hard for me to keep track of individual stocks all the time, especially those that are supposed to go in the sock drawer, so I’d better not get into too many of them. But if I miss the chance to sell them at a good price, I’ll just keep on collecting that 5-6% indefinitely.
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Preferreds really rocked this week. I bet I am up close to 3% this week alone. So I sold some of the junkier ones that raced up past few days I recently bought. May were up 5%-6% this week alone.
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01-06-2023, 11:11 PM
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#785
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Thinks s/he gets paid by the post
Join Date: Nov 2015
Posts: 2,691
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Quote:
Originally Posted by Mulligan
Preferreds really rocked this week. I bet I am up close to 3% this week alone. So I sold some of the junkier ones that raced up past few days I recently bought. May were up 5%-6% this week alone.
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Year-end tax harvesting done.... perhaps increasing rates cooling off. I bought TDS-V (sold off some TDS-U as well and rolled into TDS-V to harvest the December drop) up over 17% since year-end. Hopefully still room to run. Happy investing.
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01-07-2023, 06:34 AM
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#786
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2009
Posts: 9,343
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Quote:
Originally Posted by bobandsherry
Year-end tax harvesting done.... perhaps increasing rates cooling off. I bought TDS-V (sold off some TDS-U as well and rolled into TDS-V to harvest the December drop) up over 17% since year-end. Hopefully still room to run. Happy investing.
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I pretty much assumed both events, as you would have had to been the most unluckiest person in the world to not made money on preferreds this week. The tax loss junkies as you stated made the most this week. Even the safe ones rose too, a benefit of lower rates…And for some issues both reasons.
Some have returned to par and I dont know if they deserve that. If economy is going to weaken the credit spreads havent moved yet to smack these things. Unless of course economy keeps purring along.
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01-07-2023, 10:37 PM
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#787
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Thinks s/he gets paid by the post
Join Date: Nov 2015
Posts: 2,691
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Quote:
Originally Posted by Mulligan
Some have returned to par and I dont know if they deserve that. If economy is going to weaken the credit spreads havent moved yet to smack these things. Unless of course economy keeps purring along.
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Seems to be an active group of "experts" who just want to keep talking us into the "R" word. Not sure what the short term is, but I'm in for the long term and unless the entire country ends up in the crapper, things should level out. If not, there's a lot more going on wrong in the country. Happy Investing.
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01-08-2023, 12:00 PM
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#788
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2009
Posts: 9,343
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Quote:
Originally Posted by bobandsherry
Seems to be an active group of "experts" who just want to keep talking us into the "R" word. Not sure what the short term is, but I'm in for the long term and unless the entire country ends up in the crapper, things should level out. If not, there's a lot more going on wrong in the country. Happy Investing.
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I dont know if I have mentioned this, but if ones goal is relative price stability and present above market yield with higher than average credit quality, one should take a look at ALL-B. It starts floating next interest payment at 3.16% plus 3M Libor which is now 4.8%. So you are looking at 8% floating debt off Allstate. The lower cap preferreds are now yielding sub 6%. Its not “normal” for higher stack to have a considerably higher yield than its lower sisters. They may redeem soon but its a good place to bleed more safer income if that is ones goal.
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01-10-2023, 06:10 AM
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#789
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Full time employment: Posting here.
Join Date: May 2010
Posts: 862
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ALL-B
Mulligan,
I have a small amount of ALL-B, and waiting to see what's going to happen after next week.
if they had wanted to avoid the reset this coming weekend, they would have announced a call weeks back - and they didn't ( i think )
so we get to have at least a month to enjoy the yield of almost 8%, and continuing as long as they do not call.
and a call gives a very modest cap gain, so there is no possibility of loss in this case.
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Preferred Stock Investing-The Good , The Bad and The In Between 2021
01-10-2023, 07:01 AM
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#790
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2009
Posts: 9,343
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Preferred Stock Investing-The Good , The Bad and The In Between 2021
Quote:
Originally Posted by Coolius
Mulligan,
I have a small amount of ALL-B, and waiting to see what's going to happen after next week.
if they had wanted to avoid the reset this coming weekend, they would have announced a call weeks back - and they didn't ( i think )
so we get to have at least a month to enjoy the yield of almost 8%, and continuing as long as they do not call.
and a call gives a very modest cap gain, so there is no possibility of loss in this case.
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Coolius, I trust Allstate more than probably any company I track. They have a 6.5% 2067 fixed subordinate debt last trade around 6%. So they have same stack paying 200 bps lower, so it may just last this divi. Therefore I am playing it as a short duration high yielding hideout. The longer is stays outstanding I will be fine with that too.
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01-10-2023, 08:42 AM
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#791
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,266
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+1 While I hope that it lasts with that juicy 8% floater at the same time since I bought it at a discount just yesterday if they do call it between the discount and the next divi my IRR will be really, really good... not much in $$$ though.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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01-10-2023, 09:42 AM
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#792
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2005
Posts: 17,205
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Well, decided to place an order as I had some cash laying around from prior calls...
Unfortunately for you all that means it will be called...
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01-10-2023, 10:45 AM
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#793
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,266
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^^^ We are doomed. [emoji16]
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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01-10-2023, 02:54 PM
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#794
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2009
Posts: 9,343
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Quote:
Originally Posted by pb4uski
^^^ We are doomed. [emoji16]
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Ah, Tex, its all good for us. We will milk the cow as long as it produces. The CEO probably will notice that 8% on first floating payment and chew some accounting dept ass and redeem it right around then!
Hey tutan, I forgot to mention I am presently with you on So Cal Gas preferreds. I bought 500 shares of the identical sister SOCGM at $25.50 ish pre exD last month. Plan on holding for now.
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01-10-2023, 08:36 PM
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#795
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Recycles dryer sheets
Join Date: Jul 2020
Posts: 180
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Quote:
Originally Posted by Mulligan
Ah, Tex, its all good for us. We will milk the cow as long as it produces. The CEO probably will notice that 8% on first floating payment and chew some accounting dept ass and redeem it right around then!
Hey tutan, I forgot to mention I am presently with you on So Cal Gas preferreds. I bought 500 shares of the identical sister SOCGM at $25.50 ish pre exD last month. Plan on holding for now.
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Good price! But come on Mulligan, buy some PCG-A too while the price is low! We’ve been having a lot of rain in northern CA so no more wildfires to blame them for. Seems PCG-A is slowly creeping up so it may be a good flipper.
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01-10-2023, 11:36 PM
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#796
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 17,012
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I got excited and bought 200 of ALL-B about 15 cents below par.
__________________
Fortune favors the prepared mind. ... Louis Pasteur
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01-11-2023, 02:42 AM
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#797
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2009
Posts: 9,343
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Quote:
Originally Posted by tutan
Good price! But come on Mulligan, buy some PCG-A too while the price is low! We’ve been having a lot of rain in northern CA so no more wildfires to blame them for. Seems PCG-A is slowly creeping up so it may be a good flipper.
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Actually I couldnt resist. Last week I rotated into Series A at 20.40 and D at like 16.50 as they havent recently moved up like others had, so I sold some jumpers and bought these as a divi capture play. I recently bought SCE-L in $16s. I also have an EIX reset I have owned for a couple years that I am down modestly on, but I love the reset feature. So counting SOCGM I presently own all the Big 3 Ca utes. A fair amount also for me. Some may just be traders as I will want to raise cash soon as the spike in returns I have got in past week calls for culling the herd for a reset. It may not be any of these yet for a while.
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01-13-2023, 02:47 PM
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#798
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Thinks s/he gets paid by the post
Join Date: Aug 2012
Posts: 1,824
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Quote:
Originally Posted by Coolius
Mulligan,
I have a small amount of ALL-B, and waiting to see what's going to happen after next week.
if they had wanted to avoid the reset this coming weekend, they would have announced a call weeks back - and they didn't ( i think )
so we get to have at least a month to enjoy the yield of almost 8%, and continuing as long as they do not call.
and a call gives a very modest cap gain, so there is no possibility of loss in this case.
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It looks like it was fixed at 5.1 % thru 1/15 then it goes to 3.165% plus 3 month LIBOR. How often does that float formula get revised?
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01-13-2023, 03:13 PM
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#799
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,266
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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.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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01-13-2023, 03:20 PM
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#800
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Thinks s/he gets paid by the post
Join Date: Aug 2012
Posts: 1,824
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Quote:
Originally Posted by pb4uski
^^^ 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.
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Thanks. That sounds reasonable.
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