I am spending about an hour today grouping together links to posts on a particular subject. I have previously done what I call gateway posts for Dynamic v. Static Asset Allocation theory and the VIX Asset Allocation Model. This is a gateway post for floating rate securities. The purpose of this post and other gateway posts is not to explain the topic in any detail but simply to group links to the prior posts in one post for anyone interested in that particular topic.
The floating rate securities are a frequent topic in this blog. There might be over a 100 pages of discussion devoted to them, and I view them as important in my asset allocation scheme. They can be divided into the following general categories:
1. EQUITY (Traditional) Floating Rate Preferred Stocks (qualified dividends) and Synthetic Floaters (taxed as interest)
2. Floaters with minimum guarantees and those with no guarantee
3. Floaters tied to the CPI with no guarantee
THERE ARE MORE DISTINCTIONS INCLUDING CUMULATIVE V. NON-CUMULATIVE, MATURITY DATE OR NO MATURITY DATE, ETC, BUT I AM JUST KEEPING IT SIMPLE IN THOSE GENERAL CATEGORIES
All of these securities can be found at the QuantumOnline site, QuantumOnline Credit Ratings - QuantumOnline.comwhich contains links to the prospectuses and is free but requires registration:
[AS OF 12/18/2009: I own the following equity preferred floating rate securities that pay the greater of a guarantee or a percentage above a short term rate such as the 3 month T Bill or Libor: METPRA, MSPRA, ZBPRA, STIPRA, STDPRB, USBPRH, HBAPRD & BMLPRH. I have sold my positions in the following equity preferred stocks which also have guarantees and floats: GSPRA, BACPRE, HBAPRF & BMLPRG. I own the following equity preferred stocks that have a float provision but no guarantee: ORHPRA and SCEDN. I own the CPI floaters OSM and PFK, and have sold ISM. I still own all of the shares of the Aegon hybrid floater AEB that I have bought. For the synthetics floaters that have a guarantee, I currently own: GJN, GJP, GYB, GYC, PYT, & GJL. I have sold GJK & PYV as they approached par value. Of the synthetic floaters that do not have a guarantee, I have sold my positions in GJS, GJO and GJR, and have pared a position in GJT though I currently own 50 shares of GJT. I have bought and sold GJS several times, based on the kind of analysis that I do comparing floating rate securities from a single issuer. An example of that kind of analysis can be found at Analysis of Prior Question about Goldman Sach's Floaters.
The following are links to examples of how I evaluate equity preferred floaters from the same issuer, or compare synthetic floaters to equity preferred floaters involving securities from the same issuer: Analysis of Prior Question about Goldman Sach's Floaters BMLPRH vs. BMLPRJ /GJS VS. PYT As of 10/8/09 Analysis of Prior Question: ZBPRA vs. ZBPRC OR ZBPRB
Two posts explaining why I view these securities to be important now:
Some of the links to my posts on the equity preferred floaters:
METPRA: 4% or 1% over 3 month LIBOR METLIFE INC
AEB: 4% or 7/8% over 3 month LIBOR www.sec.gov
ZBPRA: 4% or .52% over 3 month LIBOR www.sec.gov
BMLPRG 3% or .75% over 3 month LIBOR Prospectus Supplement
BMLPRJ 4% or .75% over 3 month LIBOR Final Prospectus Supplement
BMLPRH 3% or .65% over 3 month LIBOR Final Prospectus Supplement
BMLPRL 4% or .50% over 3 month LIBOR Term Sheet
BACPRE 4% or .35% over 3 month LIBOR Bank of America Corporation
GSPRA 3.75% or .75% over 3 month LIBOR 424(B)(2)
GSPRC 4% or .75% over 3 month LIBOR 424B2
GSPRD 4% or .67% over 3 month LIBOR 424B2
HBAPRF 3.5% or .75% over 3 month LIBOR Form 424(b)(5)
HBAPRD 4.5% (with a 10 1/2% cap) or .81% of the highest of T Bill, 10 Year Constant Maturity Treasury Rate or 30 Year Constant Treasury Ratewww.sec.gov
HBAPRG 4% or .75% over 3 month LIBOR www.sec.gov
UBSPRD 1% over 1 month LIBOR (no guarantee) www.sec.gov
MSPRA 4% or .7% over 3 month LIBOR www.sec.gov
USBPRH 3.5% or .6% over 3 month LIBOR e424b2
STIPRA 4% or .53% over 3 month LIBOR Final Prospectus Supplement
SANPRB 4% or .52% over 3 month LIBOR www.sec.gov
ORHPRB 3.25% over 3 month Libor) e424b5 CALLED Oct 2010
SCEDN (floating rate, effective 4/30/2010) 1.45% over the highest of 3 Month LIBOR; 10 year or 30 U.S. Treasury CMT Prospectus Supplement
Added To METPRA at 12.5 Sold 50 METPRA at 23.27 in Regular IRA-Total Cost Per Share $13.26 Sold 100 METPRA at $24.95 Avg Cost per share $12.03
Buy of 50 AEB at 4.8 (February 2009) Added to AEB at $5.5 (Oct. 2008)
Goldman Sachs Synthetic Floaters and Floating Rate Non-Cumulative Preferred
Bought: 50 GSPRC at $19.95; Equity Preferred Floating Rate Stocks: Added 50 GSPRC At $19.63 - South Gent | Seeking Alpha; Sold 50 of 100 GSPRC at $20.89
Sold 100 GSPRA at $21.9 Bought 50 GSPRA at 18.8 Sold 50 GSPRA at 20.03
Bought 50 GSPRA at 21 (Dec 2010) Sold 50 GSPRA at 22.44 Bought 50 GSPRA at 20.86 Sold 50 GSPRA at $21.73
Bought: 50 GSPRC at $19.95; Equity Preferred Floating Rate Stocks: Added 50 GSPRC At $19.63 - South Gent | Seeking Alpha; Sold 50 of 100 GSPRC at $20.89
Sold 100 GSPRA at $21.9 Bought 50 GSPRA at 18.8 Sold 50 GSPRA at 20.03
Bought 50 GSPRA at 21 (Dec 2010) Sold 50 GSPRA at 22.44 Bought 50 GSPRA at 20.86 Sold 50 GSPRA at $21.73
Analysis of Prior Question: ZBPRA vs. ZBPRC OR ZBPRB
Item # 6 Bought Roth IRA: 50 GSPRD at $21.65 (July 2013); Item # 1 Bought 50 GSPRD at $20.6 December 2012
Item # 5 Sold 100 GSPRD at $23.71-Roth IRA (April 2013)(contains snapshot of gain=$219.25)-Item # 4 Bought 100 GSPRD at $21.38 (February 2013); Item # 6 Sold 100 GSPRD @ $23.89 (4/23/13 Post)(snapshot of realized gain $257.24)-Bought 100 GSPRD at $21.18 January 2013; Item # 6 Sold 50 GSPRD at $20.03 July 2012 (snapshot of profit $42.47)-Item # 1 Bought Back GSPRD at $18.9 July 2012; Item #2 Sold 50 GSPRD at $20.47 (March 2012)(snapshot of gain=$79.48)-Item # 1 Bought 50 GSPRD at $18.6 (September 2011 Post);Item # 1 Sold 50 GSPRD @ $22.72 (April 2011)-Item # 2 Bought 50 GSPRD at 21.58 (January 2011)
Item # 6 Bought Roth IRA: 50 GSPRD at $21.65 (July 2013); Item # 1 Bought 50 GSPRD at $20.6 December 2012
Item # 5 Sold 100 GSPRD at $23.71-Roth IRA (April 2013)(contains snapshot of gain=$219.25)-Item # 4 Bought 100 GSPRD at $21.38 (February 2013); Item # 6 Sold 100 GSPRD @ $23.89 (4/23/13 Post)(snapshot of realized gain $257.24)-Bought 100 GSPRD at $21.18 January 2013; Item # 6 Sold 50 GSPRD at $20.03 July 2012 (snapshot of profit $42.47)-Item # 1 Bought Back GSPRD at $18.9 July 2012; Item #2 Sold 50 GSPRD at $20.47 (March 2012)(snapshot of gain=$79.48)-Item # 1 Bought 50 GSPRD at $18.6 (September 2011 Post);Item # 1 Sold 50 GSPRD @ $22.72 (April 2011)-Item # 2 Bought 50 GSPRD at 21.58 (January 2011)
Bought 100 MSPRA at 12.88 in May 2009 SOLD 100 MSPRA at 21.43 Bought 50 MSPRA at 15.7 Sold MSPRA at 18.50
Bought 50 MSPRA at 19.71 (December 2010)-Pared 50 of 250 MSPRA at $20.8
Bought 50 MSPRA @ 19.57 in IRA (January 2011 ) Sold 50 MSPRA at 21.03 in Roth IRA (March 2011)
Added 50 MSPRA at 19.54 (January 2011)-Sold 50 of 200 MSPRA at $22.04
Bought 50 MSPRA at $16.6 (September 2011)
Equity Preferred Floating Rate Stocks: Added To MSPRA At $19.87 - South Gent | Seeking Alpha
Added 100 MSPRA at $18.9 (March 2012) Sold 100 MSPRA at $20.21 April 2014
Bought 50 MSPRA at $19.25-ROTH IRA (September 2013)- Sold 50 MSPRA at $20.22 April 2014
Sold 100 of 200 MSPRA at $20.91 (3/2/15 Post)Item # 3 Bought Back 100 MSPRA at $20.24 (10/4/14 Post)
Sold 50 BMLPRJ at $21.14 (3/5/15 Post)-Item # 2 Bought 50 BMLPRJ at $20.25 (1/19/2015 Post); Sold 50 BMLPRJ at $21.05 April 2014-Bought: 50 BMLPRJ at $19.93 (October 2012); Sold 100 BMLPRJ at $19.55 (February 2012)(no snapshot since the gain was less than $30; Profit =)- Item # 4 Bought 100 BMLPRJ @ 19.32 (February 2011); Item # 5 Sold 50 BMLPRJ @ 18.73 (October 2010)-Item # 4 Added 50 BMLPRJ at $17.74 (August 2010); Item # 2 Sold 50 BMLPRJ at $19.25 (September 2010)-Item # 7 Bought 50 BMLPRJ at 18.50 (August 2010); Item # 1 Sold 50 BMLPRJ at $18.9 (February 2012)- Added 50 BMLPRJ at $16.8 (February 2012)
Bought 50 BMLPRH at $13.25 Bought 50 BMLPRH at 13.83 Sold 100 BMLPRH AT 17.42 Bought: 50 BMLPRH at 16.2 Sold 50 BMLPRH at 17.64 BOUGHT 50 BMLPRH at 16.27 Sold 50 BMLPRH at 16.8
Item # 5 BOUGHT 50 USBPRH at 17.47 Sold USHPRH at 20.35 Bought: USBPRH at 18.12 SOLD 30 USBPRH AT 21.84 Bought 50 USBPRH at $18.83
Item # 1 Sold 100 STDPRB at $18.11 (8/26/2010)(profit snapshot=$265.01)-Item # 4 Bought 100 STDPRB at $15.3 (9/25/2009); Item # 3 Sold 50 STDPRB at 19.64 in the Roth IRA (2/28/11 Post)-Item # 8 Added to STDPRB at 18.6 (3/10/2010 Post); Item # 2 Sold 50 STDPRB at $20.2 (3/14/11 Post)-Fidelity Corrects Odd Lot Trade on STDPRB to $18.5 from $18.85 (April 1/2010 Post); Item # 2 Sold 50 STDPRD at $20.34 (5/24/11 Post)(snapshot of profit includes previous trade= $143.16)-Item # 1 Added 50 STDPRD at $18.54 (3/9/2010 Post); Item # 4 Sold 50 of 230 SANPRB at $20.77 (1/13/13 Post)(snapshot of profit=$124.58)-(no write up on the buy); Item # 7 Sold 50 SANPRA at $21.72-ROTH IRA (4/23/13 Post)(profit snapshot=$225.47)-Item # 2 Bought 50 SANPRB at $16.93-Roth IRA (10/41/12); Item # 1 Sold 50 SANPRB at $19.8 (1/28/14 Post)-Item # 6 Bought Roth IRA: 50 SANPRB at $19.35 (7/20/13 Post); Item # 4 Sold Roth IRA: 50 SANPRB at $20.41 (4/18/14 Post)(snapshot of profit=$105.01)-Item # 4 Added 50 SANPRB at $18.24 (9/14/13 Post)
Item # 1 Sold 100 STDPRB at $18.11 (8/26/2010)(profit snapshot=$265.01)-Item # 4 Bought 100 STDPRB at $15.3 (9/25/2009); Item # 3 Sold 50 STDPRB at 19.64 in the Roth IRA (2/28/11 Post)-Item # 8 Added to STDPRB at 18.6 (3/10/2010 Post); Item # 2 Sold 50 STDPRB at $20.2 (3/14/11 Post)-Fidelity Corrects Odd Lot Trade on STDPRB to $18.5 from $18.85 (April 1/2010 Post); Item # 2 Sold 50 STDPRD at $20.34 (5/24/11 Post)(snapshot of profit includes previous trade= $143.16)-Item # 1 Added 50 STDPRD at $18.54 (3/9/2010 Post); Item # 4 Sold 50 of 230 SANPRB at $20.77 (1/13/13 Post)(snapshot of profit=$124.58)-(no write up on the buy); Item # 7 Sold 50 SANPRA at $21.72-ROTH IRA (4/23/13 Post)(profit snapshot=$225.47)-Item # 2 Bought 50 SANPRB at $16.93-Roth IRA (10/41/12); Item # 1 Sold 50 SANPRB at $19.8 (1/28/14 Post)-Item # 6 Bought Roth IRA: 50 SANPRB at $19.35 (7/20/13 Post); Item # 4 Sold Roth IRA: 50 SANPRB at $20.41 (4/18/14 Post)(snapshot of profit=$105.01)-Item # 4 Added 50 SANPRB at $18.24 (9/14/13 Post)
Item # 5 Bought 50 STIPRA at $17.2 (September 2009); Item # 1 Sold 50 STIPRA at $20.90 (March 2010); Item # 4 Bought 50 STIPRA @ $19.75 (October 2010); Item # 3 Sold 50 STIPRA @ $21.24 (December 2010); Item # 2 BOUGHT 50 STIPRA at $19.85 (December 2010)-Item # 1 Sold 50 STIPRA at $20.9 (February 2011); Item # 4 50 STIPRA at $18.99 (January 2014)
Bought 50 HBAPRG at 23.31 (January 2011)- Item # 4 Sold 50 HBAPRG at $24.02 (April 2011); Item # 1 Bought Back 50 HBAPRG at $19.29 (September 2011)-Sold 50 of 100 HBAPRG at $20.09 (November 2011); Item # 3 Bought 50 HBAPRG at $16.8 (October 2011)-Item # 3 SOLD 50 HBAPRG at $20.64 (February 2012); Bought50 HBAPRG at $23.61 (August 2013)
Item # 1 Bought 50 HBAPRF at 20.69 (January 2011)-Sold 50 HBAPRF at 22.44 (May 2011); and (2) Bought 50 HBAPRF at $19.89 (August 2011)-Sold 50 HBAPRF at $20.65 (March 2012; Bought 50 HBAPRF at $20.95 (August 2013) Bought 50 HBAPRF at $18.53 September 2013
Bought 50 SCEDN AT $84
Item # 1 Bought 50 HBAPRF at 20.69 (January 2011)-Sold 50 HBAPRF at 22.44 (May 2011); and (2) Bought 50 HBAPRF at $19.89 (August 2011)-Sold 50 HBAPRF at $20.65 (March 2012; Bought 50 HBAPRF at $20.95 (August 2013) Bought 50 HBAPRF at $18.53 September 2013
Bought 50 SCEDN AT $84
SYNTHETIC FLOATERS: All in Trust Certificate Form
The floating rate is created by a swap agreement
Stocks, Bonds & Politics: The Egregious Swap Termination Fee Paid to the GJN Swap Counterparty (7/19/12 Post)
Symbols for Floaters and the Name of the Company Issuing the Linked Bond
GYB GJJ JBK & GJS=Goldman Sachs
GYR=Proctor & Gamble
GJO=Wal Mart
GJP=Dominion Resources
GJT= Allstate
GYC= SBC Communications (now AT & T)
Synthetic Floaters: Gateway Post
Dominion Resources: GJP Min 3 % Max 8% or 1.15% over 3 month Treasury (mat: 6/15/2035) www.sec.gov
Goldman Sachs: GJJ Min 3% or .65% over 3 month Treasury Max 6.5% (MAT: 10/15/2013) www.sec.gov
Goldman Sachs: PYT Min 3% or .85 over 3 month Libor Max 8% (MAT: 2/15/2034) www.sec.gov
Goldman Sachs: GYB Min 3.25% or .85% over 3 month Libor Max 8.25% (Mat: 2/15/2034) www.sec.gov
SBC (now AT & T) GYC Min 3.25% or .65% over 3 month Libor Max 8% (Mat: 6/15/2034) www.sec.gov
IBM : GJI Min 3% or .5% over 3 month Treasury Bill Max 6% (Mat: 11/29/2012) www.sec.gov
J P Morgan GJK Min 3% or .7% over 3 month Treasury Max 6.75% (Mat: 3/15/2014) www.sec.gov
J P Morgan PYV Min 3.25% or .83% of 10 year treasury (cmt) MAX 9.25% (mat:3/15/2014) www.sec.gov
J P Morgan GJN Min 3% or 1% over 3 month Treasury Max 8% (Mat: 8/1/2035) www.sec.gov
Daimler North America (guaranteed by Daimler AG) GJL Min 3 or 1.25% over 3 month Treasury (Maturity 11/15/2013) www.sec.gov
No Minimum Guarantee but with a Maximum:
Proctor & Gamble GJR .7% over 3 month treasury bill MAX 7.5% (mat: 8/15/2034) www.sec.gov
Allstate: GJT .8% over 3 month treasury bill Max 8% (Mat: 4/1/2036www.sec.gov
Goldman Sachs GJS .9% over 3 month treasury bill MAX 7.5% ( Mat: 2/15/2033) www.sec.gov
Wal Mart GJO .5% over 3 month Libor MAX 7.5% (Mat: 2/15/2030)www.sec.gov
Bought 100 GYB at 10.95 /Will Hold Synthetic Floaters In Retirement Account Added 30 GYB in IRA at 17.97 Pared Trades in Roth: Sold 100 PYT at 19.25 & Bought 100 GYB at 18.98
Tiptoed Back into the Exchange Traded Synthetic Floater GYB (2/21/15 Post)
Tiptoed Back into the Exchange Traded Synthetic Floater GYB (2/21/15 Post)
Bought 100 GJR at $11.29 Sold GJR, Trimmed GJT Bought 50 of the TC GJR at 19.31 Sold 50 GJR at $20.48 -ROTH IRA
BUY 50 GJN at $12 Sold 50 GJN at 22.08 in the Regular IRA Bought 50 GJN at 21.95 Bought 50 GJN at 19 In Roth IRA Added 50 of the Synthetic Floater GJN at $19.1-Roth IRA Sold 150 of the Synthetic Floater GJN at $23.02-ROTH IRA
Bought 50 PYT at 11.2 Bought 50 PYT at 13.34 Sold 100 PYT at 19.25 Bought 50 PYT at 18.06 Sold 50 PYT @ 19.54
Bought 100 GYB at 10.95 /Will Hold Synthetic Floaters In Retirement Account (April 2009); Sold 100 GYB at 18.09 (May 2010); Bought 70 GYB at 18.49 in Regular IRA (March 2010); Added 30 GYB in IRA at $17.97 (July 2010); Sold 100 GYB @ $19.4 (October 2010); Bought 50 GYB @ $19.07 (October 2010); Bought 50 GYB at 18.63 in the Roth IRA (January 2011); Sold 100 GYB at $19.7 in Roth IRA (May 2011); Bought 50 GYB at $16.95 in Roth IRA August 2011; Added 50 of the Synthetic Floater GYB at $15.56-ROTH IRA (December 2011); Sold 100 GYB at $17.09 January 2012-Roth IRA; Bought Back 100 of GYB at 17.2-Roth IRA March 2012; Sold 100 of 150 GYB at $18.03 December 2012-Roth IRA; Added 50 of the Synthetic Floater GYB at $19.6-Roth IRA (August 2013)
Bought 50 GJS at 16.9 in Roth IRA July 2011
Bought Roth IRA: 50 GJS at $13.77 December 2012-Sold 50 GJS at $17.14-Roth IRA June 2013
Added 50 of the Synthetic Floater GJS at 13.25-Roth IRA-Sold 100 GJS at $14.9
Bought Roth IRA: 50 GJS at $13.77 December 2012-Sold 50 GJS at $17.14-Roth IRA June 2013
Added 50 of the Synthetic Floater GJS at 13.25-Roth IRA-Sold 100 GJS at $14.9
BOUGHT GJT at 8.3 (April 2009) Trimmed 1/2 GJT at $13 (July 2009) Sold 50 GJT at $15.5-Some Details about Managing My Two IRA Accounts (December 2009)
Bought 50 GJP at 20.55 Sold: 50 GJP at 23.31
Bought 100 GJP at 21.95 Sold 100 GJP @ 23.52
Bought Back Synthetic Floater GJP at 22.25-ROTH IRA March 2011 Sold 100 of the Synthetic Floater GJP at $23.2: ROTH IRA
Bought 100 GJP at 21.95 Sold 100 GJP @ 23.52
Bought Back Synthetic Floater GJP at 22.25-ROTH IRA March 2011 Sold 100 of the Synthetic Floater GJP at $23.2: ROTH IRA
Item # 2 Bought GYC at $15.5: Synthetic Floating Rate Bond (May 2009); Added 50 GYC at $21.60 in Roth IRA (February 2011); Item # 1 Stocks, Bonds & Politics: Sold 100 GYC at $22.22 (July 2012).
Bought 40 of the TC GYC at $21 (September 2010)- Item # 4 Sold GYC at $22.3 in regular IRA (November 2010).
Added 50 GYC at $18.66 -Roth IRA Bought Roth IRA: 50 GYC at $20
Added 50 GYC at $18.66 -Roth IRA Bought Roth IRA: 50 GYC at $20
CPI Floaters:
Recent discussions on how to compute the monthly interest rate payments of the Prudential (PFK) and Sallie Mae (OSM, ISM) CPI FLOATERS can be found in a post from December 2010 at Item # 1. Stocks & Politics: OSM and Item # 3 PFK
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Added 50 PFK in Roth at 20.88-Averaged UP
Sold 100 PFK at $28.25
Comparing Prudential Floating Rate Bonds Tied to CPI and Fixed Rate Coupon Bonds Maturing in 2018
Sold 100 PFK at $28.25
Comparing Prudential Floating Rate Bonds Tied to CPI and Fixed Rate Coupon Bonds Maturing in 2018
Item # 4 Bought 50 ISM in IRA at $11.85 (August 2009)- Sold 50 ISM at $12.25 (October 2009); Item # 4 Bought 50 of the CPI Floater ISM at $20.62-Item # 1 Sold 50 ISM at $23.4 (9/27/12 Post); Item # 1 Bought 50 ISM at $19.5 (October 2011)- Item # 1 Sold 50 ISM at $23.84 (11/2/12 Post); Bought 100 ISM at $22.8 (9/7/13)
Sold 100 OSM at $23.34 (March 2012)-Item # 9 Bought 50 OSM at $15.74
Item # 4 Bought 100 OSM at 15.75-Regular IRA (June 2010)- Item # 4 Sold 100 OSM at $16.87 (July 2010); Item # 3 Bought 50 OSM at $11.8 (June 2009)- Item # 3 Sold 50 OSM at $16.01 (January 2010)
Another 100 shares were bought on 7/31/2008, prior to the commencement of this blog, and were sold 10/22/2010: SOLD 100 of 200 OSM at $18.18
Item # 1 Sold 50 OSM at $21.06 (March 2011)-Added to OSM at $18.47 (December 2010)
Bought 100 OSM at $23.12-Roth IRA (August 2013)
Another 100 shares were bought on 7/31/2008, prior to the commencement of this blog, and were sold 10/22/2010: SOLD 100 of 200 OSM at $18.18
Item # 1 Sold 50 OSM at $21.06 (March 2011)-Added to OSM at $18.47 (December 2010)
Bought 100 OSM at $23.12-Roth IRA (August 2013)
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