Winemaker
Thinks s/he gets paid by the post
Monmouth Real Estate PR-C will be getting called sooner than 9/15/21 due to merger with Equity Commonwealth.
OK, got an email about UBTI from Vanguard because I have preferred in a partnership...
Is all the income from a partnership subject to this tax? I thought it was just a part of the income...
Might have to sell my GLP-A....
On a side note... with GLP-B out now and fixed... is it a better holding? That is if I can hold it in my IRA.
Monmouth Real Estate PR-C will be getting called sooner than 9/15/21 due to merger with Equity Commonwealth.
I wondering about how this could affect me, so I hope you don't mind answering.
Is the UBTI email from Vanguard regarding a taxable or non-taxable account ?
I have some in non-taxable and not Vanguard, but it does not trigger an broker email, probably due to the small amount.
I'm worried about a taxable account where I have bought some recently.
Monmouth Real Estate PR-C will be getting called sooner than 9/15/21 due to merger with Equity Commonwealth.
Thanks Winemaker for bringing this up.
I continue to find myself out of the loop on some of this information. (It was only from reading posts here that I got tuned into UBTI or the AILLL call for example.)
I have a substantial position in MNR/PRC and other than from you, haven't stumbled across this information. Where are you getting it?
And, again, thanks!
I have an app on my my phone, Seeking Alpha, and it comes in handy. You put a portfolio in it, and it gives you live quotes and updates, if you choose. I check it fairly often and get a lot of good info. They have a website, also. Our favorite elder, Mulligan, is a regular commenter, under a different username, which I'll let him disclose if he chooses. Numerous articles on different subjects; it is free and some authors do hawk a subscription. Just beware about some of the articles, some is worth what you pay for, which is nothing. I've used it about 10 years.
Thanks! Great read. I own both the common (not much) and the preferred (7k shares). Both have been good to me.Youbet,
Equity Commonwealth ( EQC ) is merging with MNR, transaction to be completed in 2H of 2021. Link is provided below:
The next dividend is assured, but after that it will depend on when they can get the transaction completed.
Monmouth plans to continue to pay its regular quarterly common stock dividend and its Series C Cumulative Redeemable Preferred Stock dividend between signing and closing of the transaction.
I also hold several hundred MNR-C, but am holding on.
Ha, Yep its Gridbird. It homage to my old Big Red NFL St. Louis Football Cardinals. Thats was their local nickname back in the day.... I doubled down on DTJ at $25.30. Its basically same price as DTB 4.37% issue now. Call volume was 6-1 DTJ over DTB. Somebody is selling out thinking the party is over. Im willing to take opposite bet since its basically below par now and nothing to lose.
I have an app on my my phone, Seeking Alpha, and it comes in handy. You put a portfolio in it, and it gives you live quotes and updates, if you choose. I check it fairly often and get a lot of good info. They have a website, also. Our favorite elder, Mulligan, is a regular commenter, under a different username, which I'll let him disclose if he chooses. Numerous articles on different subjects; it is free and some authors do hawk a subscription. Just beware about some of the articles, some is worth what you pay for, which is nothing. I've used it about 10 years.
I was a Chicago Cardinal fan back in the day! That was quite a while ago....... ! The Stadium they played in and Shared with the White Sox was torn down long ago........
Thanks for the tip, Mully. Picked up 400 at $25.35 this AM
As announced on March 25, 2021, we have entered into agreements with our former sponsor, First Reserve, providing for its complete exit from its investment in our partnership and transitioning us to a governance structure that includes a publicly elected board of directors. We believe these changes will further align the interests of management and our board of directors with those of our public investors, consistent with our long-term ESG strategy. These governance changes not only enhance the voting rights of holders of common units but also those of holders of preferred units, since holders of preferred units will be entitled to vote with holders of common units in elections of board members, as well as on other matters.
We realize your time is valuable, and consequently, subject to receipt of requisite consents, we are offering a consent fee of $ per preferred unit to be paid to holders of preferred units who validly provide (and do not revoke) their consents to this proposed amendment at or prior to 5:00 p.m., Eastern Time, on , 2021 (subject to termination or extension).
Hi. Hope this is an OK sub-topic for this thread...
Is there a way to calculate the effective duration of PFFD?
I believe preferreds tend to perform like fixed income so rate volatility should impact preferred prices, yes?
Setting aside the tax treatment of some choices I'm considering, I see the following durations:
MLN: 8.94
VTEB: 5.26
SWAGX: 6.26
PFFD:
This is relatively short term money I'm working with (1-3 years), so interest near-term interest rate moves are a real consideration.
Thanks!
I have seen your posts on this in the past. I have never looked at these but my understanding is that they are sort of like a bond with no maturity date. Won't your extra income get wiped out by the stocks' loss of value as rates rise? Just curious about your thinking.
One would think so but they don't seem to be nearly as interest sensitive as you would think in real life.... and I'll admit that it is a bit of a mystery to me.
I'll use JPM.PRD as an example. It was issued Sept 18, 2018 for $25 with a 5.75% rate and a $1.44 annual dividend... at the time the 10Y Treasury was ~3.0% and the 30Y Treasury was ~3.2%.
From Sept 2018 until July 27, 2020, the 10Y Treasury yield fell ~2.5% to 0.55% and the 30Y Treasury fell ~1.8% to 1.2%. But JPM.PRD only increased to $27.92... dropping the yield from 5.75% to 5.16%.... a mere fraction of the drop in the treasury rates.
From July 2020 to today, the 10Y Treasury yield increased to 1.64% and the 30Y Treasury increased to 2.37%. But JPM.PRD only dropped to $27.11... increasing the yield from 5.16% to 5.31%.
Another example is IPLDP (Interstate Power & Light) a BBB rated issue with a 5.1% ($1.28) dividend issued in 2013. On 6/14/2014 it was trading at $25 and the 30Y Treasury was at 3.47% and the 10Y Treasury was at 2.65%. Today, it traded at $25.60 yielding 5.0% but the 30Y Treasury is at 2.37% and the 10Y Treasury is at 1.64%. With a 100bps reduction in interest rates between 2014 and now you would think that the price would have increased a lot more than 60c, but it hasn't.
Actually, this also came up in the current Income Portfolio thread where I posted about preferreds. Below is the question and my response. I wonder if some of the other seasoned preferred investors who participate in this thread (Mulligan, Coolius, bobandsherry and others) have any insights as to why they don't seem in real life to me near as interest sensitive as one would think.
Actually, this also came up in the current Income Portfolio thread where I posted about preferreds. Below is the question and my response. I wonder if some of the other seasoned preferred investors who participate in this thread (Mulligan, Coolius, bobandsherry and others) have any insights as to why they don't seem in real life to me near as interest sensitive as one would think.