Monday, May 19, 2014

Update on Exchange Traded Bonds and Preferred Stock Table as of 5/16/2014

The last update for this table was back in February. Stocks, Bonds & Politics: Update Exchange Traded Bonds and Preferred Stock Table as of 2/10/14 The last table did not delete the 150 shares of the Trust Certificate JZV that had just been redeemed by the call warrant owner and incorrectly reported the RSOPRB position as 50 shares when I own 100 shares (50 shares in two accounts). I have also neglected to include 50 GSTPRB: Bought: 50 GSTPRB at $25.3 (12/3/13 Post).

My Exchange Traded Bond and Preferred Stock Basket is shrinking due primarily to bond redemptions and the disposition of lower yielding equity preferred floaters and long term bonds in favor of higher yielding leveraged bond CEFs.

In a debate with SA user Tack, I discuss my concerns about inflation and interest rates. 

Exchange Traded Bonds are simply bonds traded on the stock exchange and fall into the following general categories. 

Baby Bonds (usually with $25 par values)
"Principal  Protected" Notes (senior unsecured notes whose coupons are linked to the performance of an index or some commodity)
European Hybrids (examples: ING HYBRIDS and Aegon Hybrids)

I generally discuss equity preferred stocks in two Gateway Posts:

Most of my buys in this area fall into one of these two categories, though I will occasionally own non-REIT fixed coupon preferred stocks. 

Click to Enlarge: 

(ADDED: This table does not include 50 shares of OFCPRL which I sold today at $26.21: Bought: 50 OFCPRL at $24.04)

The total exposure is significantly below the amounts shown in the prior two updates, but still above the levels shown in the Update as of 8/27/13.

I am going to lose all of the Citigroup Funding PPN's this year.

MBC will be the next one to mature. The End Date for the current coupon period is 6/2/14. This unsecured senior note will pay the greater of 3% or the percentage change in the Russell 2000 over its Starting Value of 998.78. The Maximum Violation number is 1,298.51 which is no longer in play given the RUT's close last Friday at 1,102.91 and the short time period until the End Date. The main question now is whether the Russell 2000 will sink further into early June or stabilize. The best result for me would be for that index to stabilize and then move up. If the Russell 2000 closed at 1,102.91 on 6/2/14, MBC's final annual coupon would be 10.42%. Last Friday's close MBC: $10.94 +0.07 (+0.64%) I will receive the $10 par value on 6/9/2014 along with the yet to be determined final interest payment. I will make a slight profit on the bonds. Bought 100 MBC at $9.84Bought 100 MBC at $9.78 Both of those buys were in 2010.

Sells Since Last Update:

Sold: 50 TCBIP at $24.21, 50 SGZA at $23.73/Sold THGA: 50 Shares at $23.46-Roth IRA and 50 Shares Taxable Account at $23.67/Bought Taxable Accounts: 50 TICC at $9.55, 50 CZNC at $18.5 (May 17, 2014 Post)

Sold Roth IRA: 50 DREPRL at $24.93, 100 GYB at $19.75 and 50 RZA at $26.89/ Sold 100 ARCPP at $23.43/Sold 100 DLRPRG at $21.55 (5/10/14 Post)

Sold: 50 AEB at $21.28 /Sold 50 SLGPRI at $23.6 (5/3/14 Post)

Sold 50 MSPRA at $20.22/Sold 100 MSPRA at $20.21 (4/26/14 Post)

Sold 50 STIPRA at $20.55 and GSPRJ at $24 (4/12/14 Post)

Sold 50 AREPRE at $24.8-Regular IRA/Sold 50 BMLPRJ at $21.05 (4/5/14 Post)

Sold: 50 NNNPRD at $24.06, 50 RZA at $26.07 (4/1/14 Post)

Sold: 100 WBSPRE at $24.4 (3/17/14 Post)

Sold 50 ARU at $25.44, 100 HUSIPRF at $20.44 (3/10/14 Post)

Sold 50 USBPRH at $20.55/Sold Roth IRA: 50 NNNPRE at $21.14 (3/3/14 Post)

Sold 50 FHNPRA at $22.49 (2/17/14 Post)

Redemptions Since Last Update:

MKN Redemption at $10 Par Value Plus Interest (4/12/14 Post)

Another Partial Call by the Owner of the JZJ Call Warrant (3/12/14 Post)(lost 94 at $25 par value)

Received MOU Redemption Proceeds This Afternoon-28.4% Annual Coupon Confirmed (3/10/14 Post)(lost $1,000 par value bond)

PJA Redeemed by Call Warrant Owner (lost 200 shares at $25 par value)

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