BDN, CFG, CIOPRA, DEA, FMAGX, HBI, HPP, MDT, NYCB, OGN, OPI, ORCC, PDM, SLG, SLGPRI, SWZ,VNO,

Economy: 

Stanley Druckenmiller sees 'hard landing' in 2023 with a possible deeper recession than many expect

Second Quarter Real GDP (third estimate): -.6% at an annual rate, unchanged from the second estimate. The current dollar GDP was +8.5%. 

Gross Domestic Product (Third Estimate), GDP by Industry, and Corporate Profits (Revised), 2nd Quarter 2022 and Annual Update | U.S. Bureau of Economic Analysis (BEA)(The decrease in real GDP reflected decreases in private inventory investment, residential fixed investment, federal government spending, and state and local government spending, that were partly offset by increases in exports and consumer spending. Imports, which are a subtraction in the calculation of GDP, increased (table 2)." Disposable personal income increased $253.3B or 5.7%. 

Personal consumption expenditures were up 2% in the 2nd quarter. 

The Atlanta FED's GDP model currently predicts +2.3% real GDP in the third quarter. GDPNow - Federal Reserve Bank of Atlanta

Initial unemployment claims for the W/E  9/24/22 decreased to 193K. News Release

August PCE inflation was reported at 6.2%, down from 6.4% in July. Core PCE inflation rose .2% to 4.9%: 

Personal Income and Outlays, August 2022 and Annual Update | U.S. Bureau of Economic Analysis (BEA)

Eurozone Inflation Sets Another Record, Hitting 10 Percent in September - The New York Times

The 5 year TIP breakeven inflation rate continues to trend down, closing at 2.26% yesterday: 

5-Year Breakeven Inflation Rate -St. Louis Fed

The peak breakeven rate was 3.57% hit on 3/23/22, which was also the highest number shown on this chart.  

The 2.26% annual average CPI prediction over the next 5 years may be about right, too high or too low, but is nonetheless relevant for how investors price  stocks and bonds now. The last reported CPI numbers, however, do not support this optimistic prediction. 

Problematic inflation has been the primary cause of the 2022 bear markets in bonds and stocks. The current breakeven inflation rates for various TIP maturities are inconsistent with inflation being anything other than a short term problem. 

2.24% as of 10/3/22

10-Year Breakeven Inflation Rate-St. Louis Fed

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Putin, recommitting to war, illegally claims annexation of Ukrainian regions - The Washington Post This annexation of Ukraine's territory is of course a blatant violation of international law and indicates that Russia intends to continue the war with no chance of peace negotiations. 

The four areas are Donetsk, Luhansk, Kherson and Zaporizhzhia. None of those areas are totally under Russia's military control. 

These annexations will further cement Russia's much deserved reputation as a pariah nation totally controlled by a murderous psychopath. 

The sham vote count supporting Russia's annexation of internationally recognized Ukrainian territory was 87 percent in the Kherson region; 93 percent in the Zaporizhzhia region; 99 percent in the Donetsk region; and 98 percent in the Luhansk region. 

The U.N. condemned Russia's flagrant violation of international law. UN Secretary-General condemns Russia annexation plan - UN News

Putin's new land grab is dangerous for Ukraine -- and the world | CNN Politics

Putin's Annexation of Ukraine's Land Raises Nuclear Risks, Escalates War

Russia's forced annexation of 40,000 square miles of Ukrainian territory (about 1/5th of that nation) reinforces and increases the concerns that it may extend its territorial grabs to other nations, particularly those that were at one time part of the Soviet Union but are now independent democracies. 

In Putin's speech declaring that 1/5th of Ukraine's territory was now part of Russia, Putin, who has unfettered and absolute control of that nation, ranted and raved about "totalitarianism, despotism and apartheid" and a "repression of freedom" in western democracies, signaling out the U.S. for what he called "Satanism" and "neocolonial hegemony".  

Russian troops were defeated and driven out of Lyman, located in Ukraine's Donetsk province, a location viewed by military strategists as a key railway supply hub shortly after Russia annexed this area. Ukraine retakes key city in region Putin annexed | DW News - YouTube; Russian forces retreat from strategic city in Ukraine - YouTube

Putin’s Claims to Donetsk Are News To Some Residents of Newly-Liberated Lyman, republished at MSN.com from the NYT.  

'Utter ferocity': See the devastating scene in a newly-liberated Ukrainian town - YouTube Lyman is a Ukrainian town that had a prewar population of about 20,000 and is included in the territory annexed by Russia. Notwithstanding that annexation, Russia left the town in ruins, with unburied bodies everywhere. Garbage was left in the structures still standing. No effort was made to feed or provide medical services to the 5,000 or so new "Russian citizens", mostly elderly people, who stayed in that Ukrainian city during Russia's occupation. Russia made no effort to provide water to its "citizens". Russian soldiers asked the residents during the occupation where they can find the "nazis". They only needed to look in the mirror. Ukrainian woman reveals the question Russian soldiers 'always' asked-YouTube; Russia’s Annexation Claim Is News to Residents of Lyman, Ukraine - The New York Times 

Russia leaves its dead soldiers where they died. Ukrainian unit finds dead Russian troops-The Washington Post (Some bodies left by Russia are booby trapped with explosives.); Ukraine claims that over 50K Russian soldiers have been killed. 

Lyman: CNN team visits key city, hours after Ukraine regains control from Russian forces | CNN

A Russian might ask themselves this simple question. Why did Russia mobilize 300K civilians when, as recently claimed, it had suffered only 5K+ killed in action? 

Can't Russia's regular army, supplemented by forced conscription in occupied Ukrainian territories and a very large contingent of mercenaries, suffer 5K+ in losses and continue fighting without a surge of 300K civilians. 

The Russian Defense Ministry claims that those recently called up civilians are now in the front lines.  

Putin obviously views the soldiers as cannon fodder for his personal imperial and financial ambitions. 

I do believe that the war is in part aimed at enriching Putin and other Russian kleptocrats who remain out of harm's way with all of the creature comforts. There are profits to be made in the seized Ukrainian territories. 

Saving Ukrainian speaking Russians from the fictional Nazis in Kiev is just Putin propaganda designed to deceive the gullible/ignorant/stupid and to disguise his true purposes for the invasion. Russia makes no distinction between civilians who speak Russian or Ukrainian when murdering them or destroying their homes and businesses.  

Fleeing occupied Zaporizhzhia as forced conscription into Russian army looms

‘Putin Is a Fool’: Intercepted Calls Reveal Russian Army in Disarray - The New York Times

Deadly strikes hit civilian convoy in Russian-occupied Ukraine ("In interviews with Washington Post reporters on Thursday, the civilians had described the reason for their travel. Some were doctors, crossing battle lines to conduct lifesaving surgeries in hospitals that Russian forces have failed to adequately restock. Others were ordinary civilians trying to rescue loved ones who were too elderly or infirm to make the journey themselves.") The convoy was attempting to take Ukrainians out of Russian occupied areas or to render aid to those unfortunate people living in Russian occupied territory. 

BBC: Anti-war poet tortured by Russian police - YouTube

No one should be surprised when Putin uses a tactical nuclear weapon in Ukraine. Nuclear weapons convoy sparks fears Putin could be preparing test to send ‘signal to the West’, republication by MSN.Com, with original article published in the Telegraph available only to subscribers. 

Russia is a state sponsor of terrorism and needs to be declared as such by the U.S. U.S. senators introduce bill to designate Russia state sponsor of terrorism | Reuters  

Maureen Dowd referred to Putin as a modern day Medea, a play written by Euripides and first performed in 431 B.C., which is an appropriate analogy.  Medea (play) - Wikipedia; Medea-Plot Summary 

If the Nord Stream pipelines were sabotaged, which has not yet been conclusively determined, Russia is the most likely culprit.  

The pipelines are easily susceptible to sabotage since they are submerged only about 250 feet below the sea surface. Nord Stream Sabotage Shows Vulnerability of Undersea Cables, Pipelines Putin claims the U.S. did it. 

One day after the leaks were discovered, the Baltic pipeline running from the North Sea to Poland opened for operation. Baltic Pipe - Wikipedia

Assuming Russia is responsible, and that is a common and understandable opinion at this time, Russia is sending a clear signal to Europe that their infrastructure facilities are easily susceptible to destruction. The explosions rupturing the Nord 1 and 2 pipelines are also consistent with Russia using energy supplies as a weapon against Europe and further highlights the folly of Europe relying on Russia for any natural gas, crude oil or anything else. Nord Stream pipeline "leaks" remind Europe it can't rely on natural gas from Russia - MarketWatch  

An attack on the Nord Stream pipelines also highlights the vulnerability of other pipelines, including the ones from Norway to Europe. Norway to deploy military to protect its oil and gas installations | Reuters If Russia sabotages those pipelines, the odds of a hot war with NATO go up meaningfully. 

Russia Beat and Denied Food to Prisoners of War, Ukraine Says, republished by MSN.com from Russia Beat and Denied Food to Prisoners of War, Ukraine Says - The New York Times

Trump never surprises me in just how disgusting and repulsive he can be.Trump intensifies attacks on McConnell with 'death wish' remark on his social media platform.  The attack included a clearly racist comment directed at McConnell's wife Elaine Choa. 

Trump lawyer Alex Cannon declined in February to say all documents returned - The Washington Post, republished at MSN.Com,  A Trump lawyer refused Trump’s request to say all documents returned ("Trump himself eventually packed the boxes that were returned in January, people familiar with the matter said. . . Trump asked his team to release a statement he had dictated. The statement said Trump had returned “everything” the archives had requested. . . the former president told his aides that the documents in the boxes were “newspaper clippings” and not relevant to the archives, two of these people said")

The lawyer who signed the statement that all documents responsive to the Grand Jury subpoena were produced is now reportedly cooperating with the DOJ/FBI investigation. Trump attorney lawyers up — and says she’s willing to cooperate with DOJ in Mar-a-Lago case: report | Salon.com

Donald has filed another libel suit, seeking $475M in punitive damages from CNN. Trump sues CNN for defamation - CBS News It is virtually impossible IMO to say anything about that creature that would be cognizable as libel or slander. Why Donald Trump Has Never Won a Libel Case | Vanity Fair Maybe Trump can win a libel suit by shopping it to a judge like Aileen Cannon that he appointed who will allow it to go to the jury, no matter how frivolous, and 12 republicans sit on the jury, all of whom believe Donald is honest and a role model for their children, which are opinions shared by about 80% of republicans. Opinion | Judge Cannon shows the courts have been politicized far beyond SCOTUS - The Washington Post

USA TODAY Network: Dive into Donald Trump's thousands of lawsuits - azcentral

USA TODAY exclusive: Hundreds allege Donald Trump doesn’t pay his bills; Report: Trump has refused to pay hundreds of workers | The Hill; Trump still owes money to contractors who built Taj Mahal casino

Unfiltered Russian Propaganda’: Joe Scarborough Outraged by CPAC’s Reference to ‘Ukraine-Occupied Territories’; CPAC backpedals on pro-Russia tweet as some U.S. conservatives back Putin - The Washington Post;  Fox News' Tucker Carlson repeats baseless Russian talking point on pipeline sabotage | Fortune Carlson receives considerable airtime on Putin TV since he regurgitates so many Kremlin talking points, false claims and propaganda to U.S. listeners.  

When a republican man impregnates a woman, and both view an abortion as their best choice, the republican man is in favor of an abortion but not other ones when he is not the father. ‘Pro-Life’ Herschel Walker Paid for Girlfriend’s Abortion Walker, who is the GOP's candidate for the U.S. senate, denied the accusation even though the woman has documents supporting her claim. 

Walker is a family values republican who has had some past difficulty in publicly acknowledging the number of children he has fathered out of wedlock. Herschel Walker, Critic of Absentee Dads, Has Yet ANOTHER Secret Son—and a Daughter; How many secret children can Herschel Walker reveal before he’s in real trouble?; Herschel Walker, critic of absentee fathers, reportedly has children he doesn’t see

++++

1. Corporate Bonds: 

Interest rates rose meaningfully in September: 

The five year yield went from 3.39% to 4.06%, a rise of 19.764% during the month. The 2 year yield rose 20.22+%. 

The primary reasons for the surge were continued hot inflation reports (both CPI and PCE) and the FED raising its expectations for FF rate increases in 2022 and 2023. 

I started to build a bond ladder in March. The short end of the ladder has already started to roll over into higher coupons. 

Excluding reinvestments of proceeds from maturing treasuries, corporate bonds and CDs, I am about 75% done with my reallocation out of cash into fixed income securities. To reach that level, it has taken about 6 months with heavier buying in July-September than in March-June. 

I am over 2 months behind in discussing my fixed income purchases. I will continue to discuss more recent purchases in each post along with the older ones. 

I am broadening my search to include more First Mortgage bonds issued by operating subsidiaries of  utility holding companies. The parent does not guarantee payment of those bonds but they are secured by substantially all assets of the operating subsidiary who issues them. The First Mortgage bonds will generally have a higher credit rating than the senior unsecured debt issued by the parent company, generally two notches higher or more. 

I discuss below buying a FM bond issued by Public Service of New Hampshire which is a new name for me in this FM bond sector. 

A. Bought 1 Laboratory 3.25% SU Maturing on 9/1/24 at a Total Cost of 98.919: 

Purchased 7/18/22

Issuer: Laboratory Corp. of America Holdings  (LH) 

LH Analyst Estimates | MarketWatch

LH SEC Filings 

SEC Filed Earnings Press Release for the Q/E 3/31/22 

I now own 2 bonds. 

FINRA Page: Bond Detail (prospectus not linked)

Prospectus 

Credit Ratings: Baa2/BBB

YTM at Total Cost = 3.786%

Current Yield at TC =  3.2855%

On the day of this purchase (7/18/22), the 2 year treasury note closed at 3.15%. Resource Center | U.S. Department of the Treasury   

B. Bought 2 Williams 3.9% SU Maturing on 1/15/25 at a Total Cost of 99.119: 

Purchased 7/18/22

Issuer: Williams Cos. (WMB) 

WMB Analyst Estimates | MarketWatch

WMB SEC Filings 

The original issuer was Williams Partners L.P., which was acquired by Williams, Inc.  

FINRA Page: Bond Detail (prospectus linked)

Credit Ratings: Baa2/BBB

YTM at Total Cost = 4.277%

Current Yield at TC = 3.9347%  

C. Bought 1 Citigroup 3.75% SU Maturing on 7/30/23 at Par Value: 

Purchased 7/18/22-Fidelity Corporate Notes Program.  

Issuer:  Citigroup Inc.  (C) 

Citigroup Inc. Analyst Estimates | MarketWatch

Interest: Paid Monthly

Credit Ratings: A3/A 

D. Bought 2 Ameren 2.5% SU Maturing on 9/15/24 at a Total Cost of 96.984: 

Issuer: Ameren Corp. (AEE) - Utility

AEE Analyst Estimates | MarketWatch

AEE SEC Filings 

Finra Page: Bond Detail (prospectus linked) 

Credit Ratings: Baa1/BBB

One of the AEE subsidiaries, Ameren Illinois, issues first mortgage bonds that have a higher credit rating than the SU bonds issued by its parent. 

YTM at Total Cost =  3.976%

Current Yield at TC = 2.5777%

E. Bought 1 Treasury 2% Coupon Maturing on 2/15/25 at 96.968: 

YTM at Total Cost:  3.238% 

Current Yield at TC = 2.0625%

F. Bought 2 Brixmor 3.65% SU Maturing on 5/15/24 at a Total Cost of 98.754: 

Purchased 7/22/22. 

Issuer: Operating entity for Brixmor Property Group Inc. (BRX) 

BRX SEC Filings 

2021 Annual Report 

Finra Page: Bond Detail (prospectus not linked)

Prospectus 

Credit Ratings: Baa3/BBB-

YTM at Total Cost = 4.343%

Current yield at TC =  3.796%

G. Purchased 1 Marathon Oil 4.4% SU Maturing on 7/15/27 at a Total Cost of 98.93: 

Purchased 7/26/22. 

Issuer: Marathon Oil Corp. (MRO) 

MRO Analyst Estimates | MarketWatch

MRO SEC Filings 

Finra page: Bond Detail

Credit Ratings: Baa3/BBB-

YTM at Total Cost = 4.643%

Current yield at TC =  4.4476%

H. Bought 2 American Tower 3.375% SU Maturing on 6/15/24 at a Total Cost of 99.344: 

Issuer: American Tower REIT  (AMT) 

This company, along with Crown Castle International Corp (CCI), dominate the independent U.S. cell phone tower market. Both have international operations. AMT recently expanded into digital data centers with the 2021 acquisition of CoreSite Realty for $10.4B, including assumption of debt. 2021 Annual Report 

AMT Profile Reuters 

AMT SEC Filings 

Finra Page: Bond Detail (prospectus not linked)

Prospectus 

Credit Ratings: Baa3/BBB-

YTM at Total Cost = 3.754%

Current Yield at TC = 3.4%

I. Purchased 2 Healthcare Trust of America 3.5% SU Maturing on 8/1/26 at a Total Cost of 96.233: 

Purchased 8/2/22. 

FINRA Page: Bond Detail (prospectus linked)

Credit Ratings: Baa2/BBB

YTM at Total Cost = 4.545%

Current Yield at TC = 3.637%

I now own 4 bonds. The other two bonds were bought in May 2017. 

J. Bought 1 Kinder Morgan 4.15% SU Maturing on 2/1/2024 at a Total Cost of 98.927: 

Purchased 9/26/22. Discussed out of time order. 

Issuer: Now a Kinder Morgan Inc. (KMI) obligation. 

KMI SEC Filings 

I own the common stock. 

FINRA Page: Bond Detail (prospectus linked) 

Credit Ratings: Baa2/BBB 

YTM at Total Cost = 4.982%

Current Yield at TC = 4.195%

K. Bought 2 Public Service of New Hampshire 3.5% First Mortgage Bonds Maturing on 11/1/23 at a Total Cost of 98.932:

Purchased 9/29/22. Discussed out of time order. 

Issue: Wholly owned subsidiary of Eversource Energy (ES) 

ES Analyst Estimates | MarketWatch

ES SEC Filings 

ES 10-Q for the Q/E 6/30/22 (Public Service of New Hampshire results can be found at pages 13-16; quarterly net income at $37.038M on $307.055M in revenue) 

Security: First Mortgage Bond 

FINRA Page: Bond Detail (prospectus linked)

Credit Ratings: A1/A+

YTM at Total Cost = 4.524%

Current Yield at TC = 3.5378% 

L. Bought 1 Entergy Mississippi 3.1% First Mortgage Bond Maturing on 7/1/2023 at a Total Cost of 99.087: 

Purchased on 9/29/22. Discussed out of time order. 

Security: First Mortgage Bond

Issuer: Wholly owned subsidiary of Entergy Corp. (ETR) 

I have eliminated my common stock position and am currently buying first mortgage bonds issued by ETR subsidiaries. 

ETR SEC Filings 

ETR 10-Q for the Q/E 6/30/22 (Entergy Mississippi results can be found at pages 147-160; net income of $48.955M on $405.5M in revenues)

Finra Page: Bond Detail (prospectus linked)

Credit Ratings: A2/A

YTM at Total Cost = 4.354%

Current Yield at TC  = 3.1286%  

I now own 5 bonds including 1 in a RI account. 

2. REIT Equity Preferred Stock: 

A. Added to CIOPRA - Bought 5 at $19.9 in Fidelity Taxable: 

Quote: CIO-PA

Issuer: City Office REIT Inc. (CIO) I previously eliminated my CIO common stock position. 

CIO SEC Filings 

SEC Filed Earnings Press Release for the Q/E 6/30/22 

History this Account: 

The other shares were purchased in March 2020 at lower prices. 

Last Buy Discussions: Item # 1.A. Bought 20 CIOPRA at $20.6; 5 at $19.14; 5 at  $18.6; 5 at $18.35; 5 at $17.5; 5 at $15.15; 5 at $13.56; 10 at $16.5(3/28/20 Post) 

Investment Category: Advantages and Disadvantages of Equity REIT Cumulative Equity Preferred Stocks, a subcategory of the Equity REIT Common and Preferred Stock Basket Strategy

Security: Prospectus Supplement

Par Value: $25

Coupon: 6.625% 

Dividends: Paid Quarterly, cumulative and non-qualified (pass through entity) 

Maturity: Potentially perpetual. Issuer option to redeem at par value + accrued and unpaid dividends started on 10/4/21.  

Placement in the capital structure: Equity preferred stock, senior only to common stock.  

Stopper Clause: Standard

Average cost per share this account = $16.78 (35 shares)

I also own a few shares in my Schwab taxable account and in 2 RI accounts. The total exposure in all accounts is less than 50 shares. 

Schwab Taxable Account-10 shares with a $12.95 AC: 

Price as of 10/3/22 Close/Yield at AC = 12.79%

Yield at $16.78 AC =  9.87%

Yield at $19.9 = 8.32%

Next Ex Dividend: 10/6/22

Last Sell Discussion:  Item # 4.A. Pared CIOPRA in Fidelity Account - Sold 10 at $24.47 (8/22/20 Post)(profit snapshot = $55.99). I have now bought back 5 shares.  

Prior Sell Discussions: Item # 6.A. Pared CIOPRA-Sold 10 at $21.17 and 10 at $22.25-Highest Cost Lots (6/6/20 Post)(profit snapshot = $22.17); Item # 1.A. Eliminated  CIOPRA-Sold 50 at $24.77-Used Commission Free Trade (4/24/19 Post)(profit snapshot = $155.22); Item # 4.A. Sold 50 CIOPRA at $24.14-Used Commission Free Trade (3/17/19 Post)(profit snapshot = $20.86); Item 3.A. Sold 50 CIOPRA at $25.21 (1/27/17 Post)(profit snapshot = $146.97) 

CIOPRA Realized Gains to Date: $401.21

3. Small Ball: 

I am continuing averaging down in small lots and have not had to wait long before making another purchase at a lower price, with some adds during the same trading day.  

Dividend yields for owned securities are consistently moving higher as I buy more shares. 

I of course do not know when the stock market will end its slide, maybe it ended yesterday or maybe not, or when the stocks that I am buying will hit bottom. 

At some unknowable time, there will most likely be a rally that will take most of my owned common stocks sufficiently higher that I will be able to unload my highest cost shares profitably. I do not know when.  

Many of the stocks that I am buying now are at prices near, or even below, the bottoms hit in March 2020.   

The common stock purchases made over the past 6 trading days will be discussed in this post and the next two. Given the number, I will discuss only about 1/2 of the purchases. 

A. Added to PDM -Bought 5 at $10.60; 5 at $10.2-Schwab Taxable Account: 

Quote: Piedmont Office Realty Trust Inc. Cl A  (PDM)

$10.2 is the lowest price that I have paid for this stock. The prior low was a 10 share lot bought at $10.30. Item # 1.H. Added to PDM in Schwab Taxable Account-Bought 5 at $13.6; 5 at $13.3; 5 at $12.5; 5 at $12.3; 5 at $11.69; 5 at $11.4 and 10 at $10.30 (10/31/20 Post) All of those shares have been sold. 

SEC Filings

10-Q for the Q/E 6/30/22

Website: Home - Piedmont Office Realty Trust

Markets - Piedmont Office Realty Trust

Management: Internal

Investment Categories: Equity REIT Common and Preferred Stock Basket Strategy/Bond Substitute

Average cost per share this account: $12.61 (45+ shares)

Dividend: Quarterly at $.21 per share, last raised from $.20 effective for the 2014 4th quarter payment. 

Dividend History | Piedmont Office Realty Trust, Inc.

I am reinvesting the dividend in this account. 

Yield at AC = 6.66%. 

Last Ex Dividend: 8/25/22

Last Discussed: Item # 3.C. Added to PDM - Bought 5 at $11.6 (9/6/22 Post) 

Last Substantive Buy Discussion: Item # 3.B. Added to PDM in Schwab Taxable - Bought 5 at $12.46 (8/30/22 Post) I discussed the last earnings report in that post. SEC Filing

Sell Discussions: Item # 1.A. Eliminated PDM in Schwab Account - Sold 5 at $18.71 and 34+ at $18 (12/31/21 Post)(profit snapshot = $235.88); Item # 2.H. Eliminated PDM- Sold 10 at $17.95 in Fidelity Account and 10 at $18.02 in Vanguard Taxable Account  (1/7/22 Post)(profit snapshots = $128.95)

Purchase Restriction: Each subsequent purchase will be limited to 10 shares or less and must be at the lowest price in the chain. 

B. Added to DEA - Bought 5 at $15.71-Fidelity Taxable Account: 

Quote: Easterly Government Properties Inc.

DEA SEC Filings

Properties | Easterly Government Properties, Inc.

10-Q for the Q/E 6/30/22

Management: Internal 

Investment Categories: Equity REIT Common and Preferred Stock Basket Strategy/Bond Substitute

Last Discussed: Item # 3.E. Added to DEA in Fidelity Taxable Account - Bought 5 at $17.7  (9/6/22 Post) I discussed the last earnings report in that post. SEC Filed Press Release

Average cost per share  = $19.66 (80 shares)

Dividend: Quarterly at $.265 per share ($1.06 annually)

DEA Dividend History | Nasdaq

I have started to reinvest the dividend effective for the next payment. 

Yield at AC = 5.39%

Yield at $15.71 = 6.75%

Last Ex Dividend: 8/10/22

DEA Realized Gains to Date: $561.84. The largest gain was $272.6. Item # 1.A. Sold 21+ DEA at $28.81 (6/6/20 Post)

Other Sell Discussions: Item # 3.A. Sold 10 DEA at $22.39 (11/20/19 Post)(profit snapshot = $47.24); Items 1.A. and 1.B. Sold 10 DEA at $19.81 and Eliminated DEA in Schwab Account at $19.81 (8/24/19 Post)(profit snapshots $74.38); Sold 10 DEA at $21.44-Used Commission Free Trade (5/17/18 Post)(profit snapshot = $22.59); Item 5. A. Sold 50 DEA at $21.59-Used Commission Free Trade (12/11/17 Post)(profit snapshot = $97.85)

I will quit buying DEA in this account when I reach 100 shares. 

C. Added 5 HBI at at $7.65-Schwab Taxable Account : 

Quote: Hanesbrands Inc.

HBI Analyst Estimates-MarketWatch

Annual Report for the F/Y Ending 1/1/22

HBI SEC Filings

SEC Filed Earnings Press Release for the Q/E 7/2/22

Last Substantive Discussion: Item # 3.H. Bought 5 HBI at $8.66 (9/6/22 Post) I discussed the last earnings report in that post. SEC Filed Earnings Press Release 

Investment Category: Contrarian Value-clearly not working but I still have the faith.  

Average cost per share = $12.42 (86+ shares)

Dividend: Quarterly at $.15

I am reinvesting the dividend. 

Yield at AC = 4.83%

Last Ex Dividend: 8/23/22

I will stop buying after buying 200 shares (all accounts), excluding shares purchased with dividends.  

D. Added 2 OPI at $16; 3 at $15.03; 1 at $14.49; 4 at $14.15; 1 at $13.67-Schwab Taxable Account: 

Quote: Office Properties Income Trust  (OPI)

OPI SEC FILINGS

10-Q for the Q/E 6/30/22

Last Discussed: Item # 3. Added 5 OPI at $18.6; 5 at $18.24 (8/30/22) I discussed the last earnings report in that post. SEC Filed Report

As previously discussed, OHI is a deservedly hated Office REIT. Just look at a five year price chart. Office Properties Income Trust (OPI) Interactive Stock Chart - Yahoo Finance

As long as the current dividend is maintained and remains covered by cash available for distribution, I will speculate in the shares, hoping to eventually sell at whatever profit may be available. 

Management: External and viewed by many in a highly unfavorable manner, which is justified IMO, and is validated by the stock chart. 

Investment Category: Equity REIT Common and Preferred Stock Basket Strategy

Average Cost per share = $17.67 (31 shares)

Dividend: Quarterly at $.55 per share 

OPI Dividend History | Nasdaq

Yield at AC = 12.45%

Last Ex Dividend: 7/22/22 (owned 10 shares as of)

The two highest cost lots in the current chain were 5 shares lots bought at $20.49 and $19.88. Those lots will be sold when and if the price rise to $20.50 or higher. The remaining shares may be sold in the $22-$25 range.  

The last elimination was at $24.47. Item # 2.G. Eliminated OPI-Sold 10 at $24.47 (1/7/22 Post) 

E. Added to HPP - Bought 5 at $11.25-Fidelity Taxable Account: 

Quote: Hudson Pacific Properties Inc.  (HPP)

Working my way up to 100 shares. 

HPP SEC Filings

2021 Annual Report

Website: Hudson Pacific Properties: A West Coast Real Estate Group

Investment categories: Equity REIT Common and Preferred Stock Basket Strategy/Bond Substitute

Last Discussion: Item # 3.A. Added to HPP in Fidelity Taxable Account - Bought 5 at $13.3; 5 at $12.75 (9/6/22 Post) I discussed the last earnings report in that post. SEC Filed Press Release and Supplemental

Average cost per share this account: $13.11 (35 shares)

Dividend: Quarterly at $.25 per share

Yield at AC = 7.6278%

Last Ex Dividend: 9/16/22

F. Added to ORCC - Bought 5 at $11.14-Fidelity Taxable Account: 

I believe this is the lowest price that I have paid for ORCC.  

Working my way up to 100 shares.  

Quote: Owl Rock Capital Corp. - A BDC

ORCC SEC Filings

10-K for 2021 (risk factors summarized starting at page 31 and ending at page 64)

3 year Financial History: 

Page 74 10-K, footnotes omitted

10-Q for the Q/E 6/30/22 (summary of investments starts at page 4)

Owl Rock Capital Corporation - Investor Relations

Management: External

Last Buy Discussions: Item # 2.F. Added to ORCC-Bought 5 at $11.65 (10/13/20 Post); Item # 1.J. Added 4 ORCC at $12.02 (9/12/20 Post); Item # 4.E. Started ORCC-Bought 10 at $12.67; 1 at $12.59; 5 at $12.27 and 5 at $11.95 (6/27/2020 Post)

Last Sell Discussion: Item # 3.K. Sold All ORCC Shares Purchased with Dividends at $14.17 - Fidelity Account (5/28/21 Post) When I do this, I will turn off dividend reinvestment. I am more concerned about shares purchased with dividends going down in price below cost than in the compounding effect. 

Average cost per share this account: $12.11  (40 shares)

Dividend: Quarterly at $.31 (regular only)

Yield at AC = 10.24%

Last Ex Dividend: 9/29/22 (owned all as of)

Net Asset Value per share history: 

 6/30/22:    $14.48

 3/31/22:     $14.88

12/31/21:     $15.08 

12/31/20.    $14.74

IPO: 7/29 at a $15.3 offering price. Prospectus (proceeds to company after the underwriters' commission at $14.382 with ORCC also incurring about $.25 per share in offering expenses. 

Last Earnings Report (Q/E 6/30/22): SEC Filed Press Release 

NII per share = $.32

Portfolio as of 6/30/22 based on "fair value": 73.1% secured first lien and 14.5% second lien secured (5.8% common equity); % at debt investments at floating rates = 98.8%.  

"As of June 30, 2022, 1 portfolio company with an aggregate fair value of $11.0 million was on non-accrual status, representing 0.1% of the total fair value of the debt portfolio."

Company Evaluation of Risk Levels: 

10-Q at pages 100-101 

Some Owl Rock SU Bonds: Rated Baa3/BBB-

5.25% SU Maturing on 4/15/24

4% SU Maturing on 3/30/25 (own 2 bonds)

3.75% SU Maturing on 7/22/2025

4.25% SU Maturing 1/15/26 

2.875% SU maturing 6/11/28 

Over the past several months, BDC SU bonds have generally experienced larger percentage declines in price than similarly rated bonds from non-pass through entities. 

G. Added to OGN - Bought 5 at $25.1; 5 at $23.6-Fidelity Taxable Account: 

Quote: Organon & Co.  (OGN)

OGN SEC Filings

2021 Annual Report

OGN Analyst Estimates | MarketWatch

Home | Organon

Organon | Products list

Last Discussed: Item # 4.G. Added to OGN - Bought 5 at $27.72; 5 at $26.4 (9/27/22 Post) 

Last Substantive Buy Discussion: Item # 3.I. Added to OGN - Bought 5 at $28.72 (9/6/22 Post) I discussed the last earnings report in that post. SEC Filed Press Release

New Average cost per share =  $27.14 (35+ shars)

Dividend: Quarterly at $.28 per share ($1.12 annually)

Yield at AC = 4.1268%

Last Ex Dividend: 8/12/22

H. Added to SWZ - Bought 5 at $6.65-Fidelity Taxable Account: 

Quote: Swiss Helvetia Fund Inc. Overview- A Stock CEF that owns Swiss stocks. 

SWZ SEC Filings 

Last SEC Filed Shareholder Report: Semiannual Period ending 6/30/22 

Sponsor's website: SWZ Fund - Schroders

Last Discussed: Item # 1.J. Sold Remaining SWZ Shares Purchased with Dividends at $10 (9/24/21 Post)(profit snapshot = $6.77) 

10 Largest Holdings as of 8/31/22: 

Of those stocks, I currently have a small ball position in Novartis. I have previously owned and sold Nestle, Roche and Zurich Insurance. 

Data Date of 9/27/22 Trade: 

Closing Net Asset Value per share: $7.86

Closing Market Price: $6.65

Discount: -15.39%

Sourced: SWZ-CEF Connect (click "Pricing Information" tab)

Average cost per share =  $7.12 (105 shares)

Dividends: Quarterly at $.1665 per share (regular only as part of a managed distribution plan; year end capital distributions may occur depending on trading results)

Dividend History - SWZ Fund (last long term capital gain paid in 2016)

Yield at $7.12 AC (regular dividend only) = 9.3539%

Last Ex Dividend: 9/20/22

I. Added TO SLG - Bought 1 at $39-Fidelity Taxable Account: 

Quote: SL Green Realty Corp.

Properties

10-Q for the Q/E 6/30/22

Investment Categories: Equity REIT Common and Preferred Stock Basket Strategy/Bond Substitute 

Last Discussed: Item # 4.I. Added to SLG - Bought 1 at $43; 1 at $41.9; 1 at $41.2; 1 at $39.65  (9/27/22 Post) 

Last Substantive Discussion: Item # 2.G. Added 2 SLG at $45 (8/30/22 Post) I discussed the last earnings report in that post. SEC Filing 

Dividend: Monthly at $.3108 per share ($3.73 annually)

Dividend History | SL Green Realty Corp.

I am reinvesting the dividend.

Average cost per share = $53.95 (24+ shares)

Yield at AC = 6.9138%

Yield at $39 = 9.56%

Last Ex Dividend: 9/29/22 (owned all as of) 

Purchase Restriction: 1 share lots, with each purchase having to be at the lowest price in the chain. I made five 1 share purchases in September. 

J. Added to SLGPRI - Bought 5 at $22.74; 5 at $22.55: 

Quote: SLG-PI

Issuer: SL Green Realty Corp.

SLG SEC Filings

Last Discussed: Item # 3.H. Added to SLGPRI- Bought 5 at $23.48 (9/13/22 Post) 

Investment Category: Equity REIT Common and Preferred Stock Basket Strategy, part of the Equity REIT Common and Preferred Stock Basket Strategy

Security: Prospectus

Placement in Capital Structure: Equity preferred stock, senior only to common stock. 

Coupon: 6.5% paid on a $25 par value

Dividends: Cumulative and non-qualified (pass through entity)

Term: Potentially perpetual, issuer has the option to call at par value + accrued and unpaid dividends. 

Average cost per share = $24.04 (20 shares)

Yield at $24.04 = 6.76%

Last Ex Dividend: 9/29/22 (owned all as of)

Purchase Restriction: I will continue buying in 5 share lots until I reach 100 shares. Each subsequent purchase must be at the lowest price in the chain.

SLGPRI Trading Profits to Date: $151.58

K. Added to VNO - Bought 1 at $23.72; 4 at $23.15-Schwab Taxable Account: 

Quote: Vornado Realty Trust  (VNO)

VNO SEC Filings

Last Discussed: Stocks, Bonds & Politics: (9/6/22 Post) 

Last Substantive Discussion: Item # 3.K. Bought 5 VNO at $28.43; 2 at $27-51- Schwab Taxable Account (8/10/22 Post) I discussed the last earnings report in that post. SEC Filed Press Release

Investment Categories: Equity REIT Common and Preferred Stock Basket Strategy/Bond Substitute

Average cost per share = $26.02 (15 shares)

Dividend: Quarterly at $.53 per share ($2.12 annually)

VNO Dividend History | Nasdaq

Yield at $26.02 = 8.1476%

Last Ex Dividend: 8/5/22

L. Added to CFG - Bought 3 at $33.89; 2 at $33.29-Schwab Taxable Account: 

Quote: Citizens Financial Group Inc.  (CFG)

Investment Category: Regional Bank Basket Strategy

CFG Analyst Estimates | MarketWatch (As of 10/3/22, the average E.P.S. estimate for 2022 was at $4.25; at $5.10 in 2023 and at $5.09 in 2024)

CFG SEC Filings

Last Discussion: Item # 3.I. Added 2 CFG at $36.73 in Schwab Taxable Account (8/10/22 Post)

Last Substantive Discussion: Item # 2.F. Bought 3 CFG at $37.34 - Schwab Taxable Account (8/2/22 Post) I discussed the last earnings report in that post. SEC Filed Earnings Press Release

Average cost per share this account: $36.4 (17 shares)

Using the average 2023 E.P.S. estimate of $5.1 in 2023, the P/E at $36.4 is 7.14.

Dividend: Quarterly at $.42 per share ($1.68 annually), last raised from $.39 effective for the 2022 third quarter payment. 

CFG Dividend History | Nasdaq

Yield at $36.74 = 4.57%

Last Ex Dividend: 8/1/22

M. Added to BDN - Bought 15 at $6.81-Schwab Taxable Account: 

Quote: Brandywine Realty (BDN)- Office REIT

Our Properties | Brandywine Realty Trust

SEC Filings

10-Q for the Q/E 6/30/22

SEC Filed Earnings Press Release for the Q/E 6/30/22

Investment Category: Equity REIT Common and Preferred Stock Basket Strategy

With this purchase, I hit my maximum 100 share position in this account.  

Last Substantive Buy Discussion: Item # 3.F. Added to BDN - Bought 5 at $8.93; 10 at $8.75; 15 at $8.58; 10 at $8.37 - Schwab Taxable Account (8/10/22 Post) I discussed the last earnings report in that post. 

Average cost per share this account = $8.42 (100 shares)

Dividend: Quarterly at $.19 per share ($.76 annually)

Yield at $8.42 AC = 9.036%

Yield at $6.81 = 11.16%

Last Ex Dividend: 10/5/22 (owned all as of)

I have started small ball positions in my Fidelity and Vanguard account which will have a lower cost per share. 

Maximum Position in all accounts: 300 shares. 

N. Added to NYCB - Bought 10 at $8.57-Vanguard Taxable Account: 

Quote: New York Community Bancorp Inc. (NYCB)

NYCB SEC Filings

10-Q for the Q/E 6/30/22

SEC Filed Earnings Press Release for the Q/E 6/30/22 

Investment Categories: Regional Bank Basket Strategy/Bond Substitute 

Last Buy Discussion: Item # 2.F. Added to NYCB in Vanguard Taxable Account - Bought 10 at $8.89; 10 at $9.3 (5/26/22 Post)

Last Sell Discussion: Item # 2. Sold 100 NYCB in Vanguard Taxable Account at $10.87  (8/23/22 Post) I discussed the last earnings report in that post and reiterated the reasons for my overall negative opinion. 

Average cost per share this account: $9.18 (42+ shares)

Dividend: Quarterly at $.17 per share ($.68 annually)

I am reinvesting the dividend in this account

Yield at AC = 7.41%

Last Ex Dividend: 8/5/22

Other Sell Discussions: Item # 1.A. Eliminated NYCB in Fidelity Account-Sold 46+ shares at $12.31 (3/10/19 Post); South Gent's Comment Blog # 5: Sold 50 NYCB at $15.58  (11/16/16 Comment); Update For Regional Bank Basket Strategy As Of 10/19/15 - South Gent | Seeking Alpha: Item # 1 Sold 150 NYCB at $18.57 (profit snapshot = $999.66); Item # 2.D. Sold 50 NYB  at $14.25 (3/25/13 Post); Item # 7 Sold 50 NYB at $17.51 (7/28/2010 Post)(profit snapshot +$331.03)  

NYCB Realized Gains to Date: $1,505.34

O. Added to MDT - Bought 1 at $81.94-Schwab Taxable Account: 

Quote: Medtronic PLC  (MDT)

MDT Analyst Estimates | MarketWatch

MDT SEC Filings

MDT Key Metrics- Reuters

Last Substantive Buy Discussion: Item # 3. Added to MDT - Bought 1 at  $86.286(9/13/22 Post) I discussed the last earnings report in that post. SEC Filed Earnings Press Release 

Average cost per share: $91.27 (7 shares) 

Dividend: Quarterly at $.68 per share

Yield at $91.27 = 2.98%

Last Ex Dividend: 9/22/22

P. Added $50 to FMAGX at $10.41: 

Quote: Fidelity Magellan Fund Overview | MarketWatch

FMAGX – Fidelity® Magellan® Fund-Morningstar (currently rated 3 stars, YTD total return through 9/30/22 at -30.72%)

Average cost per share = $11.83 (27+ shares)

4. Bond Early Redemptions: 

For the first time in over 15 years, I am okay with issuer early redemptions since I can now invest the proceeds into other bonds that at least have decent YTMs. Previously, during the extended FED Jihad Against the Savings Class, redemption proceeds could only be reinvested at lower YTMs than the redeemed bonds, a situation so unfavorable that I refused to use the proceeds to buy bonds in several of those years, with 2021 being the last year when no bonds were bought with early redemption proceeds. 

A. $10,000 Par Value 3.25% Tax Free Metropolitan Government of Nashville and Davidson County Health and Facilities Board for Vanderbilt University Maturing on 10/1/2037:  

Vanguard and Schwab Taxable Accounts: 

Interest payments made with the principal amount: 

Semiannual Interest payment 5 bond lot due 10/1/22:  $81.25

Accrued Interest payment 5 bond lot: $.90

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 sale 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 my family members.