Mulligan
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- May 3, 2009
- Messages
- 9,343
Im.gonna hold back...if i start chasing i will buy too hi.
ALLY-A is ex-dividend as of today, now down to $25.55 so I grabbed another 300 (now total of 1,500 shares). It's 2 years past it's call date and feeling pretty confident this isn't going to be called soon. It's floating rate at 3 month LIBOR plus 5.785%. LIBOR on 2/1 was 1.78698% and at 1.83338% today, so as long as it doesn't get called it should keep a decent yield even in a rising rate environment.
I've been heavy and long in financials, especially commons, for what seems like forever I don't see this as a big gamble in today's environment, especially being a preferred, but do understand you've got to stick with what you are comfortable with.Bob, I was thinking about this same move, but when I look at my portfolio, commons, preferreds and all, I'm a little heavy in banks/financials at the moment. So, I'm looking at other sectors to get some yield.
I've been heavy and long in financials, especially commons, for what seems like forever [emoji6] I don't see this as a big gamble in today's environment, especially being a preferred, but do understand you've got to stick with what you are comfortable with.
FYI - Moody/S&P rating just updated per Quantum, shows as B2/B. I was trying to recall what it was rated previously but can't find any notes I made.
I've been heavy and long in financials, especially commons, for what seems like forever I don't see this as a big gamble in today's environment, especially being a preferred, but do understand you've got to stick with what you are comfortable with.
FYI - Moody/S&P rating just updated per Quantum, shows as B2/B. I was trying to recall what it was rated previously but can't find any notes I made.
This seems to be a low yield for something rated this low... NSS has better yield and is higher rated... plus it is 6.73% plus libor so it will always be a better yield....
Thanks Mulligan for the old rating. Ally's capital position has improved quite a bit, good to see ratings reflective of my assumption.Bob, ALLY-A is my second biggest holding behind NSS. Also picked up a couple hundred more OSBCP too today. I am bigger in banks percentage wise than I have ever been. Like you, I feel as long as the economy is purring along banks should be fine...Call risk is way more of a factor with my banks than non payment.
It was rated B3 a couple years ago...And almost rated BANKRUPT 8-9 years ago, lol...
I got more in NSS than ALLY-A.....And ALLY-A call risk is greater...But gun to my head for safety I am going with ALLY. It is doing very well for the type of bank it is. NS is heading downward, ALLY is moving upward. When it comes to high yield, the safety is on the company on the upswing. I really wont watch ALLY too closely as there is no reason to for now. My ears are very perked up with NS.
I'm pretty deep into NSS, which was #2 in my holdings in my "play" account. I had more NSS than ALLY-P. So for me, and especially with Ally upgrade and NSS downgrade I was more comfortable putting more into ALLY-P. With additional shares ALLY-P has now moved up to #2 in my "play" account, just edging out NSS. Can't always just chase yield.This seems to be a low yield for something rated this low... NSS has better yield and is higher rated... plus it is 6.73% plus libor so it will always be a better yield....
I'm pretty deep into NSS, which was #2 in my holdings in my "play" account. I had more NSS than ALLY-P. So for me, and especially with Ally upgrade and NSS downgrade I was more comfortable putting more into ALLY-P. With additional shares ALLY-P has now moved up to #2 in my "play" account, just edging out NSS. Can't always just chase yield.
Good point... I saw they were looking to downgrade NSS and from what is here ALLY was upgraded...
The one thing I suppose NS has over ALLY on a worst case scenario is NS has hard assets to sell, while ALLY being a bank has just leverage. If it really came down to that, I hope I wouldnt own either, lol...Either or, I would take ALLY-A over OSBCP too. My OSBCP is a smaller allotment than ALLY-A. I have kind of went bank heavy for now with FIISO, ALLY, OSBCP, MTB-B, and 2 insurance issues.
First, you always seem to have a pretty diverse and unique list of preferred holdings. Your list of thinly traded shares is interesting to me.
As for NS and ALLY going bust, I hear ya. But by the time NS would go bust any hard assets of value would probably be sold off just to make bank. I guess good news is if you feel call is a risk then Ally is in pretty stable position. I'm waiting to see the 2017 annual report, but from the 2016 read one area of concern (and seems to be reflective in their loan loan provision) is they appear to be stretching for loan growth, their growth was sub-prime borrowers. Given the market it's unclear why except to maintain NIM.
Added some more CBL-D. Under 18. Largest position is still SPLPA.
That's my take as well. They may fill vacated space but will be at much lower $/sq ft basis. Raising rate environment doesn't bode well for the REIT's and I'm very cautious to get into fixed rate instrument tied to REIT.However, the entire retail commercial leasing space will be under pressure for the next few years as more and more stores shut down.
There are many Ally notes with maturities from 2018 through 2021 that can yield 3.8% to 4.5%. I have multiple bids in at Fidelity just below par. The issues are all fairly small. These are better than CD rates.
Im greedy so I am in pretty good on ALLY-A the trust debt. But I dont have the nerve for any CBL issues.
FYI - Ally is paying same rate. Crazy they are paying more on savings vs. 3 month CD's.I just started moving money from my brokerage account to my Amex account that pays 1.45% versus .0001%.