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

[perrytime]

Is this the most current thread for preferreds? not much activity ADAML, trading around 23, when it goes floating, over 9% I think, at end of year, I think it will get clos 25 . Adam has been quite active issuing more preferreds and senior notes. So thats a bit concerning to me.

 

[pb4uski]

Yes, despite the title, this is the most current thread for preferred stocks. I am transitioning from a portfolio that was once over 50 preferreds, mostly investment grade companies, to a few preferred stock funds to simplify things for DW and DD should anything happen to me.

 

[Texas Proud]

Thanks for the info... I am trying to get more fixed since interest rates are probably going down of the next year or two...

OHH, just looked it up... parent just did a 4 to 1 reverse split.... a sign of trouble... I will pass...

 

[Mulligan]

Thanks for the info... I am trying to get more fixed since interest rates are probably going down of the next year or two...

OHH, just looked it up... parent just did a 4 to 1 reverse split.... a sign of trouble... I will pass...

Tex, Im still wary… Yes I think short term is heading lower, but the long end is actually higher I believe than it was before Fed started cutting last year….The yield curve is steepening and perpetual and long dated babys trade off the long end, not the short end of the yield curve. And credit spreads between Govt debt and bonds (both IG and Junk) is criminally tight.

 

[Mulligan]

For anyone looking to claw some term scratch, there still may be some shares of KTN at 25.62 or less. It matures 1/1/27 at $25, but $2.05 in interest payments remain. The actual underlying bond inside KTN sells on bond desk for under 4% YTM, so the relative value of owning it in KTN is very good.

 

[aja8888]

Spire (SR/PRA) has been called as of 2/9/2026.

 

[olyveoil]

Spire (SR/PRA) has been called as of 2/9/2026.

I'll take it. Not in a big hurry to replcae.

 

[Graust]

For anyone looking to claw some term scratch, there still may be some shares of KTN at 25.62 or less. It matures 1/1/27 at $25, but $2.05 in interest payments remain. The actual underlying bond inside KTN sells on bond desk for under 4% YTM, so the relative value of owning it in KTN is very good.

Mulli:

Any worries about the “security formerly known as as PFX” (now know as CUSIP 71902E208)? There was some news brought up about Nassau or one of its subsidiaries and some financial issues. I notice that the “value” has not changed very much, so maybe it’s much ado about nothing? I have debated on buying up to a round number of 1,000 shares in the recent past… Thank you sir!!

 

[Mulligan]

Mulli:

Any worries about the “security formerly known as as PFX” (now know as CUSIP 71902E208)? There was some news brought up about Nassau or one of its subsidiaries and some financial issues. I notice that the “value” has not changed very much, so maybe it’s much ado about nothing? I have debated on buying up to a round number of 1,000 shares in the recent past… Thank you sir!!

Good question, Graust. No good answer! The problem isnt Nassau directly but a former subsidiary that got shuffled off and then later went into “run off” for its policy holders which wasnt good as it couldnt save itself. The problem of this company has been out there and there wasnt any illegal shenanigans that happen from articles I read. But there are going to be lawsuits on trying to peirce that wall and go after Nassau and Golden Gate. That is the big X factor.
The pari passu bond below with the Phoenix issue has sagged a bit, but doesnt trade stressed at around $95.

Bond Page

Bond Page

www.finra.org

Though its high yield it is like you mentioned not showing any real immediate stress. But that would change if some adverse court decision occurs down the road….I would not buy more. But I go in these things as a higher risk yield bucket yield spicer play. So if one of these went to zero it wouldnt materially affect me, so I keep and hold what I have now. But Im not buying anymore!

 

[Graust]

@Mulligan

Thanks for the detailed reply!

My thoughts were similar…..other than wanting to round off the position by buying more.

Appreciate you, sir! Cheers

 

[copyright1997reloaded]

I'll take it. Not in a big hurry to replcae.

I'd rather continue the 5.9% coupon. Oh well.

 

[tizod]

I am still happy with LXPpfC as the recent finacials looked good, and I see little risk in the pref. That said, I'd not do the common. I also like the TDSprV or U depending on the day purchased. They have money now and I see this as safe but good rate. IMHO.

 

[Texas Proud]

Sooo, do not remember getting info from broker or reading here about SPNT-B...

Just got money put into my account for this issue...

It was good while it lasted... now have to find another place to put the money!!

 

[Mulligan]

Sooo, do not remember getting info from broker or reading here about SPNT-B...

Just got money put into my account for this issue...

It was good while it lasted... now have to find another place to put the money!!

Tex, that is the hard part and is defined by which way you think the long end is going. I imagine you already have CHSCL. Bagging it in the 25.60s being it goes exD in a couple weeks doesnt really leave one call exposed all while snagging a very solid plus 7% QDI yield.
I nibbled on REGCP today. Though that is in the 6.6% range and not a QDI, because its a reit.

 

[bobandsherry]

EICC (monthly payer) has given notice of redemption on 4/6/26.

The Company has also announced that it will redeem all outstanding shares of its 8.00% Series C Term Preferred Stock due 2029 (NYSE: EICC) on April 6, 2026. The redemption proceeds will be $25 per share, plus an amount equal to all unpaid dividends and distributions on each share accumulated to, but excluding, the redemption date, without interest thereon.

https://www.businesswire.com/news/home/20260226849050/en/Eagle-Point-Income-Company-Inc.-Announces-Fourth-Quarter-and-Full-Year-2025-Financial-Results-and-Full-Redemption-of-8.00-Series-C-Term-Preferred-Stock

 

[Texas Proud]

What the heck!!! I have a good chunk of EICC also!!

I might have to just invest in PFFA...

 

[Mulligan]

PREJF is another one that's has a current yield around 7% with an ex-date coming up later this month. It’s rated BBB (S&P), Baa2 (Moody’s), BBB+ (Fitch). PartnerRe was acquired by Covéa so it trades OTC-Pink. As I was looking at this one, I found it interesting that Covéa is a mutual insurance group, so its owners are its policyholders, not external investors. I guess the term is SGAM (Société de Groupe d’Assurance Mutuelle). It seems similar to a co-op.

Way, as you would know I am sure PREJF just went exD today. The yield on exD today should be around 7.2%. In case you didnt know S&P upgrade the preferred credit rating to BBB+ a few weeks back. I reentered it a few days ago. Strong credit, strong parent, the stigma is the OTC delisting to pink sheet after being bought out a few years ago. However, for now anyways, Covea is still providing enough info to keep it off the expert market.

 

[perrytime]

IIPR-A, fixed rate, currently 10%. IIPR seems a little shaky but I'll take the risk for now.

 

[Green_and_Gold]

Anyone know why FGN price has dropped since late yesterday?

 

[Hamster]

Kind of sad that it's become so quiet here. Mainly a spectator personally, but it was still always interesting and informative.

I do have one question on a preferred: I came across KKRPRD which trades just under $40. It is yielding 8% more or less, which looks good. In addition, it matures in March 2028 at $50. There are concerns about the type of business KKR is in, but if they are still here in 2028, which seems likely, that should be about a 20% return per year.

I confess I have only looked at this briefly, so this could be a terrible idea, but there were a lot if very smart people on this thread and it has been a great source of information.

 

[Texas Proud]

Wow... that looks like a nice one... and I agree that KKR will be around...

Will do some more research but might park some money there as I have a lot from recent calls I have not reinvested...

ETA: Not so great...

The preferred shares are mandatorily convertible on 03/01/2028 into a variable number of KKR & Co. Inc (NYSE:KKR) common shares

 

[Hamster]

The preferred shares are mandatorily convertible on 03/01/2028 into a variable number of KKR & Co. Inc (NYSE:KKR) common shares

Well, that's too bad. Thanks for the information. l will have to keep looking for something to buy.

 

[Semi-Retyrd]

Well, that's too bad. Thanks for the information. l will have to keep looking for something to buy.

I suggest the M series preferred of Southern California Edison. Yahoo ticker SCE-PM; Fidelity ticker SCEPRM. This 7.5% preferred is callable 11/22/2028 at $25 par. Currently it's trading at $24.52 and pays a qualified dividend. The Eaton Wildfire had earlier depressed the price on the irrational fear that SCE could go bankrupt. This fear has mostly subsided and has recently been replaced by the fear of inflation forcing the Fed to raise interest rates. All the while Edison International EIX (the holding company) has been steadily beating consensus earnings and nicely growing their business as the demand for electricity grows in the LA area.

At $24.52 the effective yield is 7.64% and if you are in the 12% tax bracket for no tax on qualified dividends, the effective after tax yield is 7.64/.88 = 8.68%. Not too bad for a utility preferred.

 

[Hamster]

I like SCEPRM as well, but I picked up a chunk of it late last year at 23.54 and I am hesitant to add more.

I have also picked up some small lots of HFROPRB. Rated A2 by Moodys and yields about 8.2%. HFRO is an odd CEF selling at a huge discount but seems stable.

 

[Mulligan]

I lightened up into a lot of cash and SGOV quite a while ago. I was also plucking 5%-5.4% secondary CDs past first call last summer that amazingly havent been called yet so I have kept a smaller proportion of perpetual preferreds than I normally have.
Some fixed perp issues have largely held their ground being their yields are relatively higher than their credit type quality. MS-E and the Cenex Harvest issues are some examples. INBKZ, if one trusts the bank, is a good example of a high yield floater that matures in 2029. I have held that one for a while and likely will continue being its over 8% current yield and YTC a bit higher. Mediocre insurer Kemper has a sub note that starts floating next year with a yield of 5 yr treasury plus 4.14% added adjustment.
If yields jump more and causes added uneasiness or credit spread widening, I may take the lazy way and buy some PFFA. I prefer to eat what I cook, but this is an option I will consider.