Economy:
Trump says US will impose 10% tariffs on $300 billion of Chinese goods starting Sept.1
New Trump tariffs threaten U.S. consumer, spelling wider trouble for stocks, analysts say - MarketWatch
Fed cuts interest rates by quarter-point and ends quantitative tightening early - MarketWatch
I commented on the FED's press release here.
In response to Donald's latest tariff threat, the new probability of another .25% cut, on or before the September 2019 meeting, rose to 96.2%. High quality U.S. bond yields declined, and the German 10 year treasury increased its negative nominal yield to -.494%. The U.S. ten year treasury closed at a 1.846% yield. The 3 month treasury bill's yield closed at 2.06% compared to 2.16% for the 20 year treasury bond.
The Jihad Against the Savings Class is in full attack mode again.
The FED was reducing its extremely bloated balance sheet some by not reinvesting the proceeds from maturing securities. I would not call that now abandoned practice a "tightening". The FED still owns over $3.5 trillion in treasury bonds and mortgage backed securities. System Open Market Account Holdings-FEDERAL RESERVE BANK of NEW YORK
The FED purchased those assets with money that it created and turns over the interest payments annually to the treasury department who sold the U.S. treasuries. The Fed's Effect on Deficits and Debt | Committee for a Responsible Federal Budget; Fed 2017 profit payments to Treasury fall to $80.2 billion-Reuters The Fed forked over to the treasury $65.3 billion last year. This is a budget gimmick that reduces the trillion dollar or so budget deficit.
Second Quarter Growth, inflation sag in Europe-MarketWatch GDP growth was at .2% and inflation fell to a 1.1% annualized rate in July from 1.3% in June. The ECB is not going to create inflation IMO by increasing its extremely abnormal monetary policies through lowering an already negative benchmark rate or restarting another QE program.
News releases - Eurostat:
Flash Estimate Euro Area Annual Inflation down to 1.1% in July: PDF
Second Quarter GDP Up .2% in both Euro Area and EU28 (down from .4% in the first quarter; Y-O-Y GDP growth in the Euro area was reported at +1.1%)
The BLS reported that the economy added 164K jobs last month. The consensus estimate was for 171,000. Over the past 12 months, average hourly earnings increased by 3.2%. The average work week, however, decreased by .1 to 34.3. That is a meaningful number considering the size of the labor force. The number of jobs added for May was revised down by 10,000 to 62,000 and by 31,000 in June. The U-6 rate ticked down to 7% from 7.25% in June. Table A-15. Alternative measures of labor underutilization
Jobs report gets a ‘gentlemen’s C’ as growth slows - MarketWatch I would give the report a D+ due to the downward revisions for May and June, the decline in the workweek and the overall low job gain number for July. Downward revisions in the prior two months can signal that the labor market is weaker than indicated by the most current report.
Trump says US will impose 10% tariffs on $300 billion of Chinese goods starting Sept.1
New Trump tariffs threaten U.S. consumer, spelling wider trouble for stocks, analysts say - MarketWatch
Fed cuts interest rates by quarter-point and ends quantitative tightening early - MarketWatch
I commented on the FED's press release here.
In response to Donald's latest tariff threat, the new probability of another .25% cut, on or before the September 2019 meeting, rose to 96.2%. High quality U.S. bond yields declined, and the German 10 year treasury increased its negative nominal yield to -.494%. The U.S. ten year treasury closed at a 1.846% yield. The 3 month treasury bill's yield closed at 2.06% compared to 2.16% for the 20 year treasury bond.
The Jihad Against the Savings Class is in full attack mode again.
The FED was reducing its extremely bloated balance sheet some by not reinvesting the proceeds from maturing securities. I would not call that now abandoned practice a "tightening". The FED still owns over $3.5 trillion in treasury bonds and mortgage backed securities. System Open Market Account Holdings-FEDERAL RESERVE BANK of NEW YORK
The FED purchased those assets with money that it created and turns over the interest payments annually to the treasury department who sold the U.S. treasuries. The Fed's Effect on Deficits and Debt | Committee for a Responsible Federal Budget; Fed 2017 profit payments to Treasury fall to $80.2 billion-Reuters The Fed forked over to the treasury $65.3 billion last year. This is a budget gimmick that reduces the trillion dollar or so budget deficit.
Second Quarter Growth, inflation sag in Europe-MarketWatch GDP growth was at .2% and inflation fell to a 1.1% annualized rate in July from 1.3% in June. The ECB is not going to create inflation IMO by increasing its extremely abnormal monetary policies through lowering an already negative benchmark rate or restarting another QE program.
News releases - Eurostat:
Flash Estimate Euro Area Annual Inflation down to 1.1% in July: PDF
Second Quarter GDP Up .2% in both Euro Area and EU28 (down from .4% in the first quarter; Y-O-Y GDP growth in the Euro area was reported at +1.1%)
The BLS reported that the economy added 164K jobs last month. The consensus estimate was for 171,000. Over the past 12 months, average hourly earnings increased by 3.2%. The average work week, however, decreased by .1 to 34.3. That is a meaningful number considering the size of the labor force. The number of jobs added for May was revised down by 10,000 to 62,000 and by 31,000 in June. The U-6 rate ticked down to 7% from 7.25% in June. Table A-15. Alternative measures of labor underutilization
Jobs report gets a ‘gentlemen’s C’ as growth slows - MarketWatch I would give the report a D+ due to the downward revisions for May and June, the decline in the workweek and the overall low job gain number for July. Downward revisions in the prior two months can signal that the labor market is weaker than indicated by the most current report.
Private employment increased by 156,000 last month, up from 112,000 in June.
America's housing affordability crisis spreads to the heartland The problem is that home prices have again risen to unaffordable levels.
Why it could get more difficult for Americans to get approved for a mortgage - MarketWatch
Chicago PMI drops further into contraction territory in July - MarketWatch
ISM July manufacturing index falls in July to 51.2; construction spending falls 1.3% in June
ISM July 2019 Manufacturing PMI The backlog of orders declined to 43.1 from 47.4. Numbers below 50 indicate contraction.
Trade fights sap manufacturers as growth wanes to slowest pace in 3 years, ISM finds - MarketWatch
2-year U.S. government bond yield stages biggest single-day yield plunge since 2009 after Trump tariff vow - MarketWatch
U.S. 2 Year Treasury Note Overview | MarketWatch
Why it could get more difficult for Americans to get approved for a mortgage - MarketWatch
Chicago PMI drops further into contraction territory in July - MarketWatch
ISM July manufacturing index falls in July to 51.2; construction spending falls 1.3% in June
ISM July 2019 Manufacturing PMI The backlog of orders declined to 43.1 from 47.4. Numbers below 50 indicate contraction.
Trade fights sap manufacturers as growth wanes to slowest pace in 3 years, ISM finds - MarketWatch
2-year U.S. government bond yield stages biggest single-day yield plunge since 2009 after Trump tariff vow - MarketWatch
U.S. 2 Year Treasury Note Overview | MarketWatch
+++++
Markets and Market Commentary:
Samsung sees net profit plummet 53% in Q2 - MarketWatch
Oil plunges, down more than 6% after Trump adds tariffs on China
Oil plunges, down more than 6% after Trump adds tariffs on China
++++++
Trump:
One lie that Trump routinely tells is that China pays Trump's tariff tax. Trump's China tariffs - Paid by U.S. importers, not by China - Reuters; U.S. retailers blast new China tariffs, say move will raise prices further, hurt jobs - Reuters
Here's why US importers and consumers pay Trump's tariffs, not China
U.S. imposes sanctions on Iran’s Iranian Foreign Minister Mohammad Javad Zarif - The Washington Post One of my favorite questions for Trump's cult members is when will the Duck negotiate a better nuclear agreement with Iran than the one he tore up?
Trump attacks CNN's Don Lemon (a black man who is also gay)
Don Lemon hosts an hour long program each weekday evening on CNN.
Trump ally sought Saudi funds as he lobbied for nuclear deal, House report finds - MarketWatch
Just more Fake News in the Alternate Reality of TrumpWorld: Record temperatures in Europe: All-time records set in multiple countries, with Paris at 109 degrees - The Washington Post; Scientists link this summer’s record-smashing Europe heat wave to man-made global warming - MarketWatch
On another happy note, the republicans are going to end up killing us all.
It is conceivable that some Trumpsters will accept the scientific evidence about global warming shortly before they are burned to a crisp. Until the end is near, however, no amount of scientific evidence of an upcoming global climate catastrophe will change the average republican's opinion.
One lie that Trump routinely tells is that China pays Trump's tariff tax. Trump's China tariffs - Paid by U.S. importers, not by China - Reuters; U.S. retailers blast new China tariffs, say move will raise prices further, hurt jobs - Reuters
Here's why US importers and consumers pay Trump's tariffs, not China
U.S. imposes sanctions on Iran’s Iranian Foreign Minister Mohammad Javad Zarif - The Washington Post One of my favorite questions for Trump's cult members is when will the Duck negotiate a better nuclear agreement with Iran than the one he tore up?
Trump attacks CNN's Don Lemon (a black man who is also gay)
Trump ally sought Saudi funds as he lobbied for nuclear deal, House report finds - MarketWatch
Just more Fake News in the Alternate Reality of TrumpWorld: Record temperatures in Europe: All-time records set in multiple countries, with Paris at 109 degrees - The Washington Post; Scientists link this summer’s record-smashing Europe heat wave to man-made global warming - MarketWatch
On another happy note, the republicans are going to end up killing us all.
It is conceivable that some Trumpsters will accept the scientific evidence about global warming shortly before they are burned to a crisp. Until the end is near, however, no amount of scientific evidence of an upcoming global climate catastrophe will change the average republican's opinion.
Trump’s Border Patrol Chief Was In Secret, Racist Facebook Group
Book describes Mike Pence's evolution into Trump's bootlicking `Bobblehead': USA Today
Ronald Reagan's Long-Hidden Racist Conversation with Richard Nixon
I recall reading Kevin Phillips The Emerging Republican Majority, published in 1969, around 1971 as part of assigned reading in a political science class (I graduated with 3 majors: political science, history and philosophy with 163 semester hours credit and enough graduate history courses for a M.A. I was accepted at Harvard's history Phd program but elected to go another professional route).
The professor who was from the north asked me whether the strategy will work. I replied that I knew these people and I am 100% confident that the strategy will be successful.
+++++
Bill Maher on the Democrats:
“All the Democrats have to do to win is to come off less crazy than Trump, and, of course, they’re blowing it.” Their candidates for President are “coming across as unserious people who are going to take away all your money so migrants from Honduras can go to college for free and get a major in ‘America sucks.'”
Bill Maher: Dems Need to Win Moderates With Trump Fatigue
The Democrats are rapidly turning off and away voters that are necessary to win back the Presidency.
+++++
Honduras As a Failed State:
After reading this NYT article about Honduras, it is understandable why people are fleeing that country. Violent gangs rule the streets and the government is hopelessly corrupt. Withholding aid money or increasing it substantially will not solve the problems that lead to mass migration.
Book describes Mike Pence's evolution into Trump's bootlicking `Bobblehead': USA Today
Dan Coats was a casualty of Trump’s war on the truth - The Washington Post Donald nominated a Know Nothing congressman from Texas John Ratcliffe to replace Coats as the Director of National Intelligence.
Ratcliffe had no prior background or experience in intelligence.
His only qualification was that he was a Trump True Believer on steroids and attacked Mueller during his testimony to Trump's delight.
After receiving considerable push back from republican Senators, Donald withdrew the nomination, asserting that he did not want Ratcliffe to undergo continued "slander and libel" from the "LameStream Media".
Later in the day, however, Trump thanked the media for vetting his nominations. Trump to Reporters: 'You Vet for Me'
Prior to becoming one of the most far right representatives in the House, Ratcliffe was the Mayor of Health Texas, which has about a 7000 population. The town is noteworthy for its Yacht Club. Heath - Google Maps
In TrumpWorld, the media slandered Ratcliffe by pointing out he had no qualifications for this job.
Trump: 'I think the Washington Post is a Russian asset'
When I was growing up in the South, the racist politicians were Democrats, which had been the case for about a century when the the more dominant non-Southern branches of that party started to advocate for equal opportunities and civil rights for African Americans.
Thereafter, the racists and their fellow travelers moved to the republican party and have stayed with that party since the passage of civil rights legislation in the mid-1960s.
The Supreme Court decision in Roe v. Wade accelerated the movement of many democrats to the republican party, as the two political tribes dividend along pro-choice and pro-life positions respectively.
Kevin Phillips and Richard Nixon developed the Southern strategy, which used race to break-up the FDR coalition that included working class whites throughout the nation, with an emphasis on the southern states. That strategy worked then and is working now.
Reagan's racist call with then-President Nixon released by National Archives, ex-Nixon library director says Reagan referred to blacks as monkeys. Reagan continued: "To see those, those monkeys from those African countries-damn them, they're still uncomfortable wearing shoes!"Ratcliffe had no prior background or experience in intelligence.
His only qualification was that he was a Trump True Believer on steroids and attacked Mueller during his testimony to Trump's delight.
After receiving considerable push back from republican Senators, Donald withdrew the nomination, asserting that he did not want Ratcliffe to undergo continued "slander and libel" from the "LameStream Media".
Prior to becoming one of the most far right representatives in the House, Ratcliffe was the Mayor of Health Texas, which has about a 7000 population. The town is noteworthy for its Yacht Club. Heath - Google Maps
In TrumpWorld, the media slandered Ratcliffe by pointing out he had no qualifications for this job.
Trump: 'I think the Washington Post is a Russian asset'
When I was growing up in the South, the racist politicians were Democrats, which had been the case for about a century when the the more dominant non-Southern branches of that party started to advocate for equal opportunities and civil rights for African Americans.
Thereafter, the racists and their fellow travelers moved to the republican party and have stayed with that party since the passage of civil rights legislation in the mid-1960s.
The Supreme Court decision in Roe v. Wade accelerated the movement of many democrats to the republican party, as the two political tribes dividend along pro-choice and pro-life positions respectively.
Kevin Phillips and Richard Nixon developed the Southern strategy, which used race to break-up the FDR coalition that included working class whites throughout the nation, with an emphasis on the southern states. That strategy worked then and is working now.
Ronald Reagan's Long-Hidden Racist Conversation with Richard Nixon
I recall reading Kevin Phillips The Emerging Republican Majority, published in 1969, around 1971 as part of assigned reading in a political science class (I graduated with 3 majors: political science, history and philosophy with 163 semester hours credit and enough graduate history courses for a M.A. I was accepted at Harvard's history Phd program but elected to go another professional route).
+++++
Bill Maher on the Democrats:
“All the Democrats have to do to win is to come off less crazy than Trump, and, of course, they’re blowing it.” Their candidates for President are “coming across as unserious people who are going to take away all your money so migrants from Honduras can go to college for free and get a major in ‘America sucks.'”
Bill Maher: Dems Need to Win Moderates With Trump Fatigue
The Democrats are rapidly turning off and away voters that are necessary to win back the Presidency.
+++++
Honduras As a Failed State:
After reading this NYT article about Honduras, it is understandable why people are fleeing that country. Violent gangs rule the streets and the government is hopelessly corrupt. Withholding aid money or increasing it substantially will not solve the problems that lead to mass migration.
Pay or Die - The New York Times
++++
Commission Free Trades: I have acquired another 300 more free trades at Fidelity by depositing $50K in that account. That will give me flexibility to continue small ball trading for another 2 years.
++++
Commission Free Trades: I have acquired another 300 more free trades at Fidelity by depositing $50K in that account. That will give me flexibility to continue small ball trading for another 2 years.
+++++
1. Bought 100 IGR at $7.65 ($1 IB commission):
Quote: IGR | CBRE Clarion Global Real Estate Income Fund Overview
Sponsor's Website: CBRE Clarion
SEC Filings
Closing Price Last Friday: IGR $7.57 -$0.04 -0.53%
Portfolio holdings as of 3/31/19-SEC Filing
Last Discussed: Item # 1 (6/29/19 Post) That purchase was made in a Fidelity account where I will be reinvesting the dividends.
Data Date of Trade &/17/19):
Closing Net Asset Value Per Share = $8.83
Closing Market Price = $7.65
Discount: -13.36%
Sourced: CBRE Clarion Global Real Estate- CEF Connect
Current position: 300 Shares + shares purchased with dividends on a 200 share lot
Maximum Position: 500 shares
Purchase Restriction: None (whenever the spirit moves me)
Dividend: Monthly at $.05 per share ($.60 annually, supported by ROC)
Last Ex Dividend Date: 7/18/19 (day after this purchase)
Dividend Yield at $7.65 = 7.84%
Last Round Trip: Item # 1 Sold 283 IGR at $7.89+ (8/24/13 Post)
Portfolio Leverage: 13.58% as of 6/30/19
Total Expense Ratio (ex interest expense) = 1.17%
2. Bought 50 OFS at $11 ($1 IB Commission):
Quote: OFS Capital Corp. (OFS)
Website: Homepage - OFS Capital
Investments - OFS Capital
Closing Price Last Friday: OFS $11.19 +$0.17 +1.54% (slightly favorable response to second quarter earnings report)
OFS SEC Filings
2018 Annual Report (risk factor summary starts at page 25 and ends at page 51)
Dividends: Quarterly at $.34 per share ($1.36 annually)
Dividend Yield at $11 = 12.36% (excludes special dividends)
Last Ex Dividend Date: 6/30/19
Last Sell Discussions: Item # 3 Pared OFS-Sold Highest Cost Lots in Schwab Account: 50 Shares at $12.47 and 50 Shares at $12.27 (5/5/19 Post) This transaction reduced my average cost in that account to $10.1 and increased the dividend yield for the remaining shares to 13.465%.
Last Buy Discussions: Item # 3B. Bought 10 OFS at $9.95 and 20 at $9.61 Using Fidelity Commission Free Trades (1/9/19 Post); Item # 4.B. Bought 10 OFS at $11.07 and 10 at $10.75 Used Fidelity Commission Free Trades (11/11/18 Post)
5 year Chart (as of 7/24/19):
5 Year Annual Average Total Return Through 7/24/19 = +9.31%
DRIP Returns Calculator | Dividend Channel
Last Earnings Report Before Purchase (Q/E 3/31/19):
NII was reported at $.36 per share, above the $.34 quarterly distribution.
"As of March 31, 2019, floating rate loans as a percentage of fair value comprised 88% of OFS Capital’s debt investment portfolio, with the remaining 12% in fixed rate loans." (emphasis added)
OFS Capital Corporation Announces First Quarter 2019 Financial Results
Last Earnings Report (Q/E 6/30/19)(released last Friday):
OFS Capital Corporation Announces Second Quarter 2019 Financial Results
Weighted Average Yield-Performing Debt: 11.41%
Non-Accrual Loans: No new non-accruals
Net Asset Value Per Share History: The recent trend starting in 2017 is worrisome.
6/30/19: $12.95 Page 2 10-Q 3/31/19 $13.04 10-Q
12/31/18 $13.10
6/30/18 $13.70
03/31/18 $13.67
12/31/17 $14.12
12/31/16 $14.82
12/31/15 $14.76
12/31/14 $14.24
12/31/13 $14.54
IPO Offering Price at $15 (November 2012) with proceeds after the underwriters' discount at $13.05 Final Prospectus Supplement
Current Positions/Total Average Cost Per Share:
Interactive Brokers: 50 shares/ $11.02
Schwab: 59+ Shares / $10.16
Fidelity: 86+ Shares (lowest price in chain: 20 at $9.61)
The Fidelity account has a small ball purchase restriction in place.
I will consider averaging down in my IB account since the broker's commission is just $1.
In the Schwab account, I will not be buying more shares since I do not have any commission free trades left. I will continue to use dividends to buy shares as long as the likely purchase price is at a discount to net asset value per share.
OFS Baby Bond:
OFS has an exchange trade SU baby bond: OFS Capital Corp. 6.375% Notes due 2025 (OFSSL); Prospectus
On 10/12/18, OFS sold $48.11+M (with the greenshoe) in principal amount of 6.5% senior unsecured notes maturing on 10/31/25. OFS Capital Corporation Prices Public Offering of $43,500,000 6.50% Notes Due 2025
1. Bought 100 IGR at $7.65 ($1 IB commission):
Quote: IGR | CBRE Clarion Global Real Estate Income Fund Overview
Sponsor's Website: CBRE Clarion
SEC Filings
Closing Price Last Friday: IGR $7.57 -$0.04 -0.53%
Portfolio holdings as of 3/31/19-SEC Filing
Last Discussed: Item # 1 (6/29/19 Post) That purchase was made in a Fidelity account where I will be reinvesting the dividends.
Data Date of Trade &/17/19):
Closing Net Asset Value Per Share = $8.83
Closing Market Price = $7.65
Discount: -13.36%
Sourced: CBRE Clarion Global Real Estate- CEF Connect
Current position: 300 Shares + shares purchased with dividends on a 200 share lot
Maximum Position: 500 shares
Purchase Restriction: None (whenever the spirit moves me)
Dividend: Monthly at $.05 per share ($.60 annually, supported by ROC)
Last Ex Dividend Date: 7/18/19 (day after this purchase)
Dividend Yield at $7.65 = 7.84%
Last Round Trip: Item # 1 Sold 283 IGR at $7.89+ (8/24/13 Post)
Portfolio Leverage: 13.58% as of 6/30/19
Total Expense Ratio (ex interest expense) = 1.17%
2. Bought 50 OFS at $11 ($1 IB Commission):
Quote: OFS Capital Corp. (OFS)
Website: Homepage - OFS Capital
Investments - OFS Capital
Closing Price Last Friday: OFS $11.19 +$0.17 +1.54% (slightly favorable response to second quarter earnings report)
OFS SEC Filings
2018 Annual Report (risk factor summary starts at page 25 and ends at page 51)
Dividends: Quarterly at $.34 per share ($1.36 annually)
Dividend Yield at $11 = 12.36% (excludes special dividends)
Last Ex Dividend Date: 6/30/19
Last Sell Discussions: Item # 3 Pared OFS-Sold Highest Cost Lots in Schwab Account: 50 Shares at $12.47 and 50 Shares at $12.27 (5/5/19 Post) This transaction reduced my average cost in that account to $10.1 and increased the dividend yield for the remaining shares to 13.465%.
Last Buy Discussions: Item # 3B. Bought 10 OFS at $9.95 and 20 at $9.61 Using Fidelity Commission Free Trades (1/9/19 Post); Item # 4.B. Bought 10 OFS at $11.07 and 10 at $10.75 Used Fidelity Commission Free Trades (11/11/18 Post)
5 year Chart (as of 7/24/19):
5 Year Annual Average Total Return Through 7/24/19 = +9.31%
DRIP Returns Calculator | Dividend Channel
Last Earnings Report Before Purchase (Q/E 3/31/19):
NII was reported at $.36 per share, above the $.34 quarterly distribution.
"As of March 31, 2019, floating rate loans as a percentage of fair value comprised 88% of OFS Capital’s debt investment portfolio, with the remaining 12% in fixed rate loans." (emphasis added)
OFS Capital Corporation Announces First Quarter 2019 Financial Results
Last Earnings Report (Q/E 6/30/19)(released last Friday):
OFS Capital Corporation Announces Second Quarter 2019 Financial Results
Weighted Average Yield-Performing Debt: 11.41%
Non-Accrual Loans: No new non-accruals
"Net investment income of $4.86 million, or $0.36 per share, an increase of 6% year-over-year and above the $0.34 quarterly distribution." NII is in excess of the quarterly dividend rate.
"As of June 30, 2019, floating rate loans as a percentage of fair value comprised 89% of OFS Capital’s debt investment portfolio, with the remaining 11% in fixed rate loans."
"On July 30, 2019, OFS Capital's Board of Directors declared a distribution of $0.34 per share for the third quarter of 2019, payable on September 30, 2019 to stockholders of record as of September 23, 2019."
OFS has a subordinated loan made to Southern Technical Institute that is on non-accrual. The original principal amount was 1.563M and has been already written down to a zero value.
6/30/19: $12.95 Page 2 10-Q 3/31/19 $13.04 10-Q
12/31/18 $13.10
6/30/18 $13.70
03/31/18 $13.67
12/31/17 $14.12
12/31/16 $14.82
12/31/15 $14.76
12/31/14 $14.24
12/31/13 $14.54
IPO Offering Price at $15 (November 2012) with proceeds after the underwriters' discount at $13.05 Final Prospectus Supplement
Current Positions/Total Average Cost Per Share:
Interactive Brokers: 50 shares/ $11.02
Schwab: 59+ Shares / $10.16
Fidelity: 86+ Shares (lowest price in chain: 20 at $9.61)
I will consider averaging down in my IB account since the broker's commission is just $1.
In the Schwab account, I will not be buying more shares since I do not have any commission free trades left. I will continue to use dividends to buy shares as long as the likely purchase price is at a discount to net asset value per share.
OFS Baby Bond:
OFS has an exchange trade SU baby bond: OFS Capital Corp. 6.375% Notes due 2025 (OFSSL); Prospectus
On 10/12/18, OFS sold $48.11+M (with the greenshoe) in principal amount of 6.5% senior unsecured notes maturing on 10/31/25. OFS Capital Corporation Prices Public Offering of $43,500,000 6.50% Notes Due 2025
3. Short Term Bond/CD Ladder Basket Strategy:
A. Sold 1 Anheuser Busch InBev Financial 2.65% SU Maturing on 2/1/21:
Finra Page: Bond Detail
Issuer: Wholly owned subsidiary of Anheuser-Busch InBev S.A. who guarantees the notes
Sold at 100.496
YTM at 100.496 = 2.307%
4. Intermediate Term Bond Ladder Basket:
A. Sold 1 Anheuser Busch InBev Financial 2.5% SU Maturing on 7/15/22:
Sold at 100.716
YTM at 100.716 = 2.253%
Prior Round-Trip: Item # 3.A. Sold 2 BUD 2022 (4/3/19 Post)-Item # 3.C. Bought 1 BUD 2022 SU at 96.95 TC (5/17/2018 Post); Item # 4.C. Bought 1 BUD 2022 SU at 97.824 (4/19/18 Post)
5. Long Term Bond Strategy- Tennessee Municipal Bonds:
A. Bought 5 City of Springfield, TN. 3.25% GO Maturing on 6/1/34:
I am classifying this bond as long term since the maturity is over 10 years from the purchase date.
This municipal bond and others that I own are being priced as if the issuer will call at par value when it has the right to do so.
The issuer can call this bond at par value plus accrued interest on or after 6/1/23.
If called, the bond would in effect become an intermediate term one (greater than 3 years to maturity).
Springfield-Google Maps Springfield is located in Robertson County Tn. which is one of the middle Tennessee counties that are part of the Nashville greater metropolitan statistical area.
Emma Page
Credit Rating: Aa3 Moody's
Security:
Taxation: Federally Tax Free interest
Bought at a Total Cost of 102.197 (with $1 per bond commission)
Current Tax Free Yield = 3.18%
YTM = 2.641% (assumes issuer optional redemption on 6/1/23)
5. Added 50 FSK at $5.62-Used Commission Free Trade:
Quote: FS KKR Capital Corp (FSK)
Website: FS KKR Capital Corp
Closing Price Last Friday: FSK $5.66 +$0.03 +0.53%
I am not following the First Law of Holes on this one. When one is in a hole, the First Law of Holes says quit digging.
I am lowering my average cost per share which is easy to do since the price keeps falling.
Last Substantive Discussion: Item # 4 Added 50 FSK at $5.95 (6/5/19 Post (discussed last earnings report in that post)
Average Cost Before 50 Share Add: $6.48
Average Cost After Add: $6.18
As I have stated in prior posts, FSK is a deservedly hated BDC.
Dividend: Quarterly at $.19 per share ($.76 annually)
Far more likely to be cut than raised IMO
Dividend Yield at Total Average Cost = 12.3%
Last Ex Dividend Date: 6/18/19
Dividend Reinvestment: Yes, as a way to average down
Net Asset Value Per Share as of 3/31/19 (last report) = $7.86
Discount to NAV at $7.86 NAV and Average Cost of $6.18 = -21.37%
Since the external managers have been in an asset incineration mode, a 21% discount to net asset value per share is not a sufficient buffer until that mode is replaced first by stabilization and then some increases.
5. Long Term Bond Strategy- Tennessee Municipal Bonds:
A. Bought 5 City of Springfield, TN. 3.25% GO Maturing on 6/1/34:
I am classifying this bond as long term since the maturity is over 10 years from the purchase date.
This municipal bond and others that I own are being priced as if the issuer will call at par value when it has the right to do so.
The issuer can call this bond at par value plus accrued interest on or after 6/1/23.
If called, the bond would in effect become an intermediate term one (greater than 3 years to maturity).
Springfield-Google Maps Springfield is located in Robertson County Tn. which is one of the middle Tennessee counties that are part of the Nashville greater metropolitan statistical area.
Emma Page
Credit Rating: Aa3 Moody's
Security:
Taxation: Federally Tax Free interest
Bought at a Total Cost of 102.197 (with $1 per bond commission)
Current Tax Free Yield = 3.18%
YTM = 2.641% (assumes issuer optional redemption on 6/1/23)
5. Added 50 FSK at $5.62-Used Commission Free Trade:
Quote: FS KKR Capital Corp (FSK)
Website: FS KKR Capital Corp
Closing Price Last Friday: FSK $5.66 +$0.03 +0.53%
I am not following the First Law of Holes on this one. When one is in a hole, the First Law of Holes says quit digging.
I am lowering my average cost per share which is easy to do since the price keeps falling.
Last Substantive Discussion: Item # 4 Added 50 FSK at $5.95 (6/5/19 Post (discussed last earnings report in that post)
Average Cost Before 50 Share Add: $6.48
Average Cost After Add: $6.18
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| 263+ Shares |
Dividend: Quarterly at $.19 per share ($.76 annually)
Far more likely to be cut than raised IMO
Dividend Yield at Total Average Cost = 12.3%
Last Ex Dividend Date: 6/18/19
Dividend Reinvestment: Yes, as a way to average down
Net Asset Value Per Share as of 3/31/19 (last report) = $7.86
Discount to NAV at $7.86 NAV and Average Cost of $6.18 = -21.37%
Since the external managers have been in an asset incineration mode, a 21% discount to net asset value per share is not a sufficient buffer until that mode is replaced first by stabilization and then some increases.
Disclaimer: I am not a financial advisor but simply an individual investor who has been managing my own money since I was a teenager. In this post, I am acting solely as a financial journalist focusing on my own investments. The information contained in this post is not intended to be a complete description or summary of all available data relevant to making an investment decision. Instead, I am merely expressing some of the reasons underlying the purchase or sell of securities. Nothing in this post is intended to constitute investment or legal advice or a recommendation to buy or to sell. All investors need to perform their own due diligence before making any financial decision which requires at a minimum reading original source material available at the SEC and elsewhere. A failure to perform due diligence only increases what I call "error creep". Stocks, Bonds & Politics: ERROR CREEP and the INVESTING PROCESS Each investor needs to assess a potential investment taking into account their personal risk tolerances, goals and situational risks. I can only make that kind of assessment for myself and family members.
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