capjak
Full time employment: Posting here.
Sorry, Cap..Not following your question.
I found some information. Just wanted to know about security of the business.
Global Indemnity Limited
Sorry, Cap..Not following your question.
I found some information. Just wanted to know about security of the business.
Global Indemnity Limited
I know A.M. Best rated it lower investment grade. But I also know 7.87% issue yield is not the normal rate for that kind of rating...Too high and companies just dont give away high bond yields because they are generous. Something isnt lining up here, so the risk level is higher here...Too what degree I dont know, but I dont view it as a bet the farm issue.
It also depends on impossible to predict things like weather and possible terrorist incidents. Plus add in headquarters in the Caymans (like many reinsurers and large property/casualty insurers), rather than a US domiciled company. Just one really big event could spell disaster for them - not that it would wipe them out, but be enough losses to really cripple them, even with re-insurance, etc. So there is some element of random risk. Think of them like an mREIT - only instead of a 2 point interest rate rise that would wipe them out, it's a Cat 4/5 hurricane, or an earthquake, etc. A smaller interest rate rise would be painful, but manageable to a certain degree (for the mREIT)...just like a few large insurance incidents would be painful - but manageable - to GBLIL.
I have 200 shares (my max limit for "riskier" preferreds), and will hold for a while....but I'm widely diversified, so it's a bit different situation.
Sunset, Moorebonds knows more about this stuff, so dont let my negative rants sway you either way on these. Im an oddball investor...And my number 1 rule in investing is....If I am going to lose money on an investment, I damn sure want to understand and explain why I lost money. I cant comprehend the true mechanisms, leverage, and derivatives of these Mreits. So I stay away...Now in reality, I am violating that rule by owning bank preferreds. But usually if a bank goes under the reason would be fairly obvious. Mreits may at times be the best investment out there. I will never know because I am not willing to buy them though.
You may know this (or even better than me) but it bears mentioning...This issue is the "parent" holding company debt, not the actual insuring subsidiaries. You can look at the actual subsidiaries that are insuring the companies and people finances which may look great. Unfortunately that is more for the people being insured not the debt holders of parent company debt which is a shell do nothing company that only owns the stock the subsidiary companies.
It would be like for example me borrowing billions and issuing baby bonds to buy out the stock of walmart, target, and sears. "Gridbird Holdings" now controls all 3 of the separate individual companies and keeps them separate. I am loaded to the gills with debt. Say Sears continued losses take me down all while Target and Walmart continue on unaffected and very profitable. Doesnt matter Gridbird Holdings goes belly up and your baby bonds too.
So my point is understanding the finances behind this holding company is beyond my scope. I know A.M. Best rated it lower investment grade. But I also know 7.87% issue yield is not the normal rate for that kind of rating...Too high and companies just dont give away high bond yields because they are generous. Something isnt lining up here, so the risk level is higher here...Too what degree I dont know, but I dont view it as a bet the farm issue.
Pig, I saw the AES-C. I have been out a few weeks. People who owned will not get call smacked here due to accrual of divi..Interestingly though the call was clearly let out of the bag May 15 as they had an SEC filing showing a bank loan to be used to pay off AES-C
Yes only minor inconvenience, div accrual easily covered and then some. I also had MHNB, luckily div accrual well past my purchase price also. Kind of figured that one would be called. I play these penny games a lot. Keeps cash at work while I sift thru other stuff to buy (of which unfortunately there is none).
Im on my penny chasing ways too. Saw BOFIL get near par so I snagged 400.... I then sold BPFHP at $25.75 as the trade off. I collected a divi holding a month with BPFHP and bought at same price. I like the 2026 backstop to BOFIL.
And I dont like going bank crazy so I sold one to balance the purchase.
Anybody know the date of the AES call? Or the price plus divi?
It is my largest pref holding... will have to see what I want to replace it with...
With the various calls that I have endured since first starting this I am hesitant to buy a past call over call price...
Texas, It is June 22... A lot of accrual for this dividend is built in to pay out... Surprised you have been hit with a lot of calls. I seem to side step them most of the time despite being knee deep in the past calls most of the time...
Pig, yes BOFI seems like its a sister of Bank of California with accusations here and there... BOFIL bounces up and down. I hit it on a down just a few cents above par. This is in my flip pile but will consider holding a while. The common acted fine and was up today. BOFIL started creeping back up after the early morning dump. I rarely will buy if common is dropping with the preferred. But today the preferred dropped and the common was going up. Of course being a debt issue they have to pay of become insolvent unlike a true bank non cum preferred. It will give me something to watch, lol...
Also bought 300 shares of ALMBP yesterday at $25.90. Wanted more today but it wouldnt come back to me. So I bought 100 shares of GLFPN today. Not thrilled to be under SO's umbrella but I checked pretty thorough yesterday how Gulf and Alabama Power are set up. No entanglements with Georgia Power or Mississippi Power financially which have been downgraded. Gulf and Ala. are stable and highly rated with needing no parent support, which their debt is lower rated than the 2 purchased subsidiaries.
I couldnt ever find any info on it Moorebonds...It got bought out by a private company and no financials are issued, so I dont know their intentions with it. I remember at the time when it was lower I would have bought it if I knew more about the acquiring company and the safety of it.
by the looks of it, Moorebonds got in pretty good. who would have thought $33 on a $25 par issue would be a cracking deal. if that thing goes the distance that would be sweet.
Here is a link to their 10-K:
https://materials.proxyvote.com/Approved/43162L/20170425/10K_324925.PDF