tag:blogger.com,1999:blog-2986124651030959736.post5831656275294909147..comments2024-03-28T09:42:38.695-05:00Comments on Stocks, Bonds & Politics: Bought 200 NAUH at $3.76/Eliminated CWH at $24.18/Paired Trade: Bought 100 VGI at $18.97 and Sold 82+ CWH at $22.31-Roth IRA/Sold 50 GOV at $26/Sold 1 HCA 7.69% Senior Bond Maturing in 2025 at 104.18/Sold 50 of 200 MSPRA at $22.04TENNINDEPENDENThttp://www.blogger.com/profile/17444227958539559639noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2986124651030959736.post-45591793023750886962013-12-10T14:33:03.518-06:002013-12-10T14:33:03.518-06:00Scott: Other than SCEDN which may be called since ...Scott: Other than SCEDN which may be called since it is floating at a spread to the 30 year treasury, all of the equity preferred floaters have been taking a beating this year and the downturn has accelerated over the past few days. Some of the recent decline may be due to tax loss selling. These securities and my bond CEFs have been a drag this year.<br /><br />For BAC securities, I currently own 50 shares of BMLPRJ at the moment which is a floating rate equity preferred stock originally issued by Merrill Lynch. <br /><br /> http://tennesseeindependent.blogspot.com/2013/10/steve-king-bought-back-vwitx-at.html<br /><br />I discussed in September some of the problems with these securities now when buying 50 share lots of SANPRB and HBAPRF:<br /><br />http://tennesseeindependent.blogspot.com/2013/09/bought-50-hbaprf-at-1853-roth-ira.html<br /><br />I have not owned a BAC fixed to floating rate security. Do you mean BCXQL? That one pays a 5.2% fixed coupon until 6/1/2023 when it starts to float at a 3.125% spread to the 3 month Libor. <br /><br />I have not given that one any thought. I did recently evaluate the fixed to floating rate bond RZA:<br /><br />Most of the discussion is in the first post:<br /><br />http://tennesseeindependent.blogspot.com/2013/09/bought-300-of-artis-reit-at-c1436bought.html<br /><br />http://tennesseeindependent.blogspot.com/2013/10/bought-200-pdt-at-1173-200-fax-at-608.html<br /><br />I would consider what you are giving up now and for how long compared to the potential likelihood of a redemption on or after 6/1/23 which is very hard to estimate with any certainty. Generally, I am more comfortable with a higher libor float and a discount to par value. The RZA is a bond with a 4.37% spread to Libor in 2022. The BCXQL pays non-cumulative dividends which could legally be eliminated once BAC eliminates its current 1 cent per share quarterly common dividend. TENNINDEPENDENThttps://www.blogger.com/profile/17444227958539559639noreply@blogger.comtag:blogger.com,1999:blog-2986124651030959736.post-35904360585955985712013-12-10T12:51:38.268-06:002013-12-10T12:51:38.268-06:00Any thoughts on the BoA fixed/floating preferred s...Any thoughts on the BoA fixed/floating preferred series L? I think you've traded before. It's been taking a beating lately. I find it tough to put of a value on these securities that primarily benefit from tail scenarios. Scottnoreply@blogger.com