CMCSA, CNOBP, EMP, ENB, JQC, PINE, REI.UN:CA,

Economy: 

Consumer Price Index Summary - 2024 M05 Results:

CPI Annual: 3.3%, down from 3.4% through April 

Core CPI Annual: 3.4%, down from 3.6% through April 

Annual Core CPI less "shelter" was up 1.9%, down from 2.1% through April.  

Month-To-Month CPI: Unchanged

Month-To-Month Core CPI: +.02%  

Discussed at CPI report: CNBC 

Annual owners equivalent rent: 5.7%, down from 5.8% through April

Month-To-Month OER = .4%, unchanged. 

Table 2.  CPI by detailed expenditure category - 2024 M05 Results

Fed Holds FF Rate at 5.25%-5.5% - Sees Only 25 Basis Point This Year - CNBC   I discussed this new forecast in a comment published on 6/12/24. 

The Fed - June 12, 2024: FOMC Projections materials 

Producer prices declined by .2% in May. PPI report: Wholesale prices unexpectedly fell 0.2% in May

Prices for imports fell .4% in May and were up 1.% Y-O-Y. U.S. Import and Export Price Indexes summary - 2024 M05 Results

Federal Reserve issues FOMC statement "Recent indicators suggest that economic activity has continued to expand at a solid pace. Job gains have remained strong, and the unemployment rate has remained low. Inflation has eased over the past year but remains elevated. In recent months, there has been modest further progress toward the Committee's 2 percent inflation objective."

Office Buildings’ Losses Are Growing, With More Pain to Come - The New York Times

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Allocation Shifts Discussed in this Post: 

Treasury Bills Purchased at Auction: +$11,000 in principal amount

Corporate Bonds: +$6,000 in principal amount 

CDs: +$3,000

Inflow U.S. Common Stocks: +$7.42

(consisting of $731.5 of purchases minus $724.08 in proceeds)

Canadian REIT: +C$851.5 (converted to US$622 to determine allocation dollars)

Inflow Common Stocks:  +$629.42

Leverage Senior Loan CEF: -$228.43

Equity Preferred Stock: -$304.1

First Mortgage Bond (EMP): +$109.58

2024 Outflow Common Stocks/Stock Funds: -$30,243.9

Treasury Yield Curve - June 2024: 

Resource Center | U.S. Department of the Treasury

+++

Trump and His Party: 

RealClearPolitics - Election 2024 - General Election: Trump vs. Biden

Trump’s Latest Campaign Pledge: Revenge-U.S. News & World Reports

Justice Thomas received an estimated $4.2M in gifts. Supreme Court Justice Clarence Thomas got millions in gifts

Trump hits tech fundraiser in San Francisco, some guests pay $300,000 The fundraiser was hosted by David O. Sacks and Chamath Palihapitiya who founded Social Capital. 

Felon candidate Trump and convicted allies threaten U.S. officials after guilty verdict - YouTube 

Donald Trump Wants Five Lawmakers Indicted-Newsweek The congressional representatives were members of the January 6th Committee that published a 864 page report on the republican insurrection. Select January 6th Committee Final Report and Supporting Materials Collection | GovInfo

Trump ally Steve Bannon ordered to report to prison July 1 in contempt of Congress case - CBS News A federal district court judge appointed by Trump issued this order. 

Bannon' said "this is about shutting down the MAGA movement, shutting down grassroots conservatives, shutting down President Trump." 

Trump blamed the weaponization of the Justice Department by the "CROOKED" Biden administration for the jury verdict finding Bannon guilty of criminal contempt. He was without question guilty IMO. The verdict was upheld by a three judge appellate panel finding that Bannon had no defense for his refusal to testify or to provide documents in response to a congressional subpoena. Steve Bannon Prison News Sparks MAGA Fury - Newsweek; Appeals court upholds Steve Bannon's conviction for defying Jan. 6 probe-POLITICO; Appellate Court Opinion One of the judges on the panel, Justin R. Walker, was appointed by Trump.  

Clarence Thomas, in Financial Disclosure, Acknowledges 2019 Trips Paid by Harlan Crow - The New York Times (6/7/2024). Even after amending his disclosure forms, Thomas left out gifts that he received from a GOP megadonor. Clarence Thomas took more trips on GOP megadonor’s private plane than previously known; New documents show unreported trips by Justice Clarence Thomas - The Washington Post (6/13/24).  

Jeffrey Toobin: Trump documents judge Cannon 'trying to kill this prosecution' I am convinced now that Judge Cannon will delay a trial until after the election. While others can debate her motives, the delay is inexcusable and is consistent with a judge doing whatever she can to protect Trump from more criminal convictions.

Trump claims Jan. 6 insurrectionists were 'set up' by Capitol police - YouTube

Hunter Biden conviction shatters Trump’s persecution narrative Hunter had almost a zero chance of an acquittal and should have pled guilty IMO.  Biden says he will not pardon Hunter or commute his sentence - The Washington Post

Southern Baptists vote to formally oppose IVF - YouTube; Southern Baptists formally oppose IVF They are part of what I call the American Taliban wing of Trump's party. Senate Republicans block Democratic bill to protect IVF nationwide

Washington man allegedly kills teen because he mistook an airsoft gun for a real firearm - ABC News The 17 year old was returning an airsoft gun and was shot in the back by a gun wielding private citizen.  

Let’s Talk About Trump’s Gibberish - The Atlantic  

Supreme Court strikes down Trump-era ban on bump stocks Justice Thomas wrote the opinion. The decision was 6-3 with all Republican Justices voting to eliminate the ban. A bump stock, capable of firing more than 1000 rounds in 11 minutes, was used at the  2017 Las Vegas music festival mass shooting that killed 60 and wounded 413. The subsequent panic brought the number of injuries to about 847.  

Trump floats eliminating U.S. income tax and replacing it with tariffs on imports Idiotic in the extreme and the most ridiculous policy proposal ever made by a candidate for President. Almost 50% of U.S. taxpayers pay no federal income tax. The tariff hike would increase the prices paid for imported goods, and provide an umbrella for price increases by domestic companies. The consequence would be a huge tax like increase, in effect, on lower and middle income households. And hiking tariffs to replace income taxes would result in lower tariff revenues, as imported goods become far too expensive and are no longer imported in any quantity, leaving the U.S. government will almost no revenue, hyperinflation, debt defaults, a plunging USD, and a depression that can not be alleviated by government spending.  

++

Psychopath Putin and His Imperialistic Nation: 

Losses ∙ Russia ∙ WarSpotting — documented material losses in Russo-Ukrainian war

Before Putin is willing to discuss a peace agreement, Ukraine must first withdraw Ukrainian troops from the territories of Donetsk, Kerson, Luhansk and Zaporizhzhia and abandon any plan to join NATO. Russia's Putin sets out conditions for peace talks with Ukraine The war will continue. Putin is hoping that Trump wins the election. Trump has made it clear that he will both terminate aid to Ukraine and pressure Ukraine to relinquish territory.  

S-300 Launchers and Radars Confirmed by ATACMS Destroyed Near Yevpatoria, Crimea - YouTube Destroying air defenses in Crimea would be a prelude to a full scale attack by the Ukrainian army that would include the use of the F-16s. Another prelude would be to cut off Russian supply routes to Crimea by sea and over the Kerch bridge. There is no reason for Ukraine to destroy the bridge/rail link until it is ready to retake Crimea. Losing Crimea would be hard for Putin to explain away. The sea supply route has been effectively cut off already by marine drones that have sunk or damaged several ships in Russia's Black Sea navy.  

Putin's air defences destroyed in Crimea | Matthew Savill - YouTube

Buk SAM System Destroyed by Switchblade & Pantsir Destroyed by HIMARS - YouTube

One Drone Did Impact at Mozdok Airbase in North Ossetia! - YouTube

Ukraine Hits Top Su-57 Fighter Jet Inside Russia - Newsweek; Ukraine says deep drone strike destroys rare Russian Su-57 stealth fighter | CNN (372 miles behind the front lines at the Akhtubinsk air base in the Astrakhan Oblast) The Su-57 has launched Kh-59 and Kh-69 cruise missiles at Ukrainian targets. Sukhoi Su-57-Wikipedia The Su-57 was not even protected by a hanger, notwithstanding its cost of around $35M. 

Why Russia Is Happy at War - The Atlantic

Russian Train in Kursk Attacked by FPV Drones - YouTube

Marine Drones Attack Russian Tug & Barge in Taganrog Bay (First Use of Toloka Underwater Drone?) - YouTube

Three Russian T-62 Tanks and a BMP Destroyed in Failed Russian Attack on Starytsya, Kharkiv - YouTube

New US sanctions against Russia force end of dollar and euro trading on Moscow Exchange 

G7 leaders agree to loan Ukraine money backed by profits from frozen Russian investments; G7 summit opens with deal to use Russian assets for Ukraine - ABC News 

++++

1. Small Ball Buys: 

A. Added 5o REI.UN:CA at C$17.01-(C$1 Interactive Brokers Commission): 

Quote:  RioCan Real Estate Investment Trust (Canada: Toronto)

Total Cost: C$851.5

As of 3/31/24, the portfolio consisted of "188 properties with an aggregate net leasable area of approximately 32.6 million square feet (at RioCan's interest) including office, residential rental and nine development properties." 

Footnotes omitted from snapshot

Q1 2024 - Supplemental Disclosure 

I classify RioCan as primarily a retail REIT with some apartment and office properties. As of 3/31/24, the REIT owned 14 apartment buildings with 3,072 units. 

Occupancy and Rent Information: 

Supplemental at page 4. 

U.S. Pink Sheets: RIOCF I have bought and sold the USD priced shares but will no longer trade them. Item #3.C. Sold 20 RIOCF at US$17.7 (12/16/21 Post)(profit snapshot = $139.02)   

Investment Category: Equity REIT Common and Preferred Stock Basket Strategy

Website: RioCan REIT - Real Estate Investment Trust Company

Last Discussed: Item # 1 Restarted REI.UN:CA - Bought 100 at C$18.5 (12/23/23 Post) 

Last Elimination: Item # 7 Sold 100 REI.UN:CA at C$27.04 (6/19/14 Post) Riocan was trading near C$25 in March 2020. In response to the pandemic, the price had slid to about C$15.5 in June 2020.  The monthly dividend was cut from C$.12 to C$.08 effective for the January 2021 payment. 

New Average cost per share: C$18.01 (150 units)

Dividend: Monthly at C$.0925 per unit (C$1.11 annually)

Canada will withhold a 15% tax. Claiming Foreign Taxes: Credit or Deduction? | Charles Schwab

RioCan REIT  - Distributions

RioCan Real Estate Investment Trust Announces May 2024 Distribution

Yield at C$18.01 AC per unit: 6.16%

Last Ex Dividend: 5/31/24 (owned 100 as of)   

Last Earnings Report (Q/E 3/31/24): 

RioCan Reports First Quarter Results - Strong Leasing Results Driven by Accelerated Demand for High-Quality RioCan Space

All amounts are in Canadian Dollars. 

FFO per unit: $.45

Book value per unit: $24.89

Operational Highlights: 

Net Income to FFO Reconciliation:  

As with other Canadian REITs, real estate is not depreciated, so there is no non-cash depreciation expense that would be deducted from net income to arrive at FFO, which is the case for U.S. REITs. Instead, net income is adjusted up or down by fair value estimates of the owned real estate. This adjustment is a mushy number compared to using the depreciation method which is a precise number.  

2024 Guidance: FFO per unit at $1.79 to $1.82. The P/FFO is currently less than 10.   

B. Added to PINE - Bought 10 at $15.25: 

Quote: Alpine Income Property Trust Inc. (PINE)

Cost: $152.5

Managed by a wholly owned subsidiary of CTO Realty Growth Inc. (CTO) which I also own. 

PINE is a retail REIT that owned 138 properties as of 3/31/24. The REIT also makes secured construction loans for the development of retail properties and also has an interest in a first mortgage loan secured by retail properties as discussed below.  

SEC Filings

2023 SEC Filed Annual Report (properties are listed starting at page 7)

Property Portfolio — Alpine Income Property Trust, Inc.

Website: Alpine Income Property Trust, Inc.

Investment Category: Equity REIT Common and Preferred Stock Basket Strategy

Last Discussed: Item # 2.A. Added to PINE - Bought 10 at $15.18 (4/5/2024 Post)(discussed 2023 4th quarter report, SEC Filed Earnings Release); Item # 1.A. Added to PINE - Bought 5 at $14.9; 5 at $14.4 (10/28/23 Post)

New Average cost per share: $15.98 (56 shares)

Snapshot Intraday on 6/7/2024 after add

Dividend: Quarterly at $.275 per share ($1.1 annually), last raised from $.27 effective for the 2022 third quarter. 

PINE Dividend History | Nasdaq

Yield at New AC: 6.88%

Last Ex Dividend: 6/13/24 (owned all as of) 

Recent News: Alpine Income Property Trust Announces Sale of a Senior Portion of First Mortgage Loan Investment Proceeds of $13.6M were used to pay down borrowings under PINE's credit facility. This sale reduced PINE's interest in the FM loan investment to $9.8M at an interest rate of approximately 9.94%. The loan is secured by a portfolio of retail properties. 

Prior to this sale, this mortgage note receivable was in the principal amount of $23.37M as of 3/31/24:

Page 15 10-Q for the Q/E 3/31/24 

Last Earnings Report (Q/E 3/31/24): 

SEC Filed Press Release and SEC Filed Supplemental 

FFO per share: $.41

AFFO per share: $.42 

Net Income to AFFO Reconciliation: 

Number of Properties: 138

Weighted Average Remaining Lease Term: 6.9 years 

Occupancy: 99% 

"Repurchased 45,768 shares of the Company’s common stock at a weighted average gross price of $16.90 per share, for a total cost of $0.8 million."

Debt: Spreads to SOFR

While the SOFR rates were fixed with interest rate swaps, as referenced in the footnotes, the company still pays the spreads to SOFR. The SOFR rate on the credit facility has been fixed at 3.21% which is higher than the 2 term loans maturing in May 2026 and January 2027 that are fixed at 2.05% and 1.18% respectively. Paying down the credit facility borrowings would lower interest rate costs the most.  

2024 AFFO per share guidance: $1.53 to $1.58 

C. Restarted CMCSA - Bought 10 at $38.91; 5 at $37.98: 

Quote: Comcast Corp. Cl A

Cost:  $579

Comcast is the largest cable operator with over 32.2M customers as of 12/31/23 (14.1M in video; 32.3M in broadband internet; and 6.6M in wireless). 

The media segment includes  the NBC and Telemundo broadcast networks, the Peacock streaming network; cable channels Bravo, CNBC, E!, Golf Channel, MSNBC, SKY, Style, Syfy and USA; 12 regional sports and news networks, and owned TV stations. 

The movie and television studio is branded under NBC/Universal. 

Comcast also owns theme parks in Orlando, Hollywood, Osaka, and Beijing. 

CMCSA Analyst Estimates | MarketWatch

CMCSA SEC Filings

SEC Filed 2023 Annual Report 

Last Eliminations: Item # 3.C. Eliminated CMCSA - Sold 25+ at $46.89 V(8/19/23 Post)(profit snapshot = Net of +$102.85); Item # 3.D. Eliminated CMCSA in Vanguard Taxable Account - Sold 7 at $45.6 (8/5/23 Post)(profit snapshot = $35.56) 

Average cost per share: $38.6 (15 shares)

Dividend: Quarterly at $.31 per share ($1.24 annually), last raised from $.29 effective for the 2024 second quarter payment. 

CMCSA Dividend History | Nasdaq

Yield at $38.60: 3.21%

Next Ex Dividend: 7/3/24

Last Earnings Report (Q/E 3/31/24): SEC Filed Earnings Press Release 

Comparisons are to the 2023 first quarter. 

Revenues: $30.058B, up from $29.691B

GAAP E.P.S. = $.97, up from $.91

Adjusted E.P.S. $1.04, up from $.92

Non-GAAP Consensus Estimate at $.99 per Schwab

Free Cash Flow: $4.538B, up from $3.8B

In Millions, except for per share data

Reconciliation GAAP to Non-GAAP: 

The adjustment for amortization of intangibles, a noncash expense. 

Revenue and Adjusted EBITDA  by Operating Segments: 

In Millions

10-Q for the Q/E 3/31/24 at page 6 

Comcast does face a long term headwind of customers cutting their subscription to the video channels. Even when that is done, many cord cutters will keep an internet subscription for streaming. 

I subscribe to an expanded Comcast video package and its internet service. The internet downloads at 400+mbs. The total cost is almost $300 per month. If a family is financially strained, this kind of service can be characterized as a luxury that needs to be cut entirely or substantially reduced in cost.   

Last Bond Offering (May 2024): Prospectus 

Analyst Reports (available to Schwab Customers): 

Morningstar (4/25/24): 5 stars with a fair value of $56 and a wide moat. The analyst referred to several weaknesses in the last earnings report, including the net loss of 65,000 broadband customers (though revenue per customer increased 4.2%), weak revenue growth in the theme park business of 1.5% Y-O-Y, and wireless customer growth at the slowest rate in more than 2 years. 

S&P (4/30/24): 4 stars with a 12 month PT of $50. 

Argus (5/6/24): Buy with a $50 price target. Estimated 2024 E.P.S. at $4.21 and at $4.47 in 2025. 

2. Small Ball Sells: 

A. Eliminated 1 of 2 Duplicate Positions in ENB - Sold 20 at $36.2 - Vanguard Account: 

Quotes: 

USDs: Enbridge Inc. (ENB)

CADs:  Enbridge Inc. (Canada: Toronto)

Proceeds: $724.08

Website: Home - Enbridge Inc.

ENB Key Metrics | Reuters

ENB SEC Filings

10-Q for the Q/E 3/31/24 

SEC Filed 2023 Annual Report (At pages 14- 33, the various energy infrastructure businesses are discussed, with maps of the pipelines and other facilities)  

Profit Snapshot: $141.47

Last Buy Discussions: Item # 1.F. Added to ENB in Vanguard Taxable Account-Bought 5 at $29.51; 5 at $28.95; 5 at $27.4 (10/31/20 Post); Item # 1.C. Added 5 ENB at $30.65-Fidelity Taxable (8/15/20 Post); Item # 1.C. Added 1 ENB at $27.23; 1 at $26.21; 1 at $25.49; 1 at $24.29; 1 at $23.68  (4/18/20 Post)

Dividends: Quarterly at C$.915 (C$3.66 annually), last raised from C$.8875 effective for the 2024 first quarter payment. 

Dividends and Common Shares - Enbridge Inc.

Dividend History in CADs: Excellent so far. 

Last Ex Dividend: 5/16/24 (owned as of)

Last Earnings Report (Q/E 3/31/24):

SEC Filed Earnings Press Release   and 10-Q for the Q/E 3/31/24 

All amounts are in Canadian Dollars. 

GAAP Net Income of $1.4B or $.67 per share. 

Adjusted net income of $2B or $.92, up from $.85

Distributable cash flow of $3.463B, up 9%

DCF per share: $1.63

"Closed the acquisition of The East Ohio Gas Company ("EOG"), now doing business as Enbridge Gas Ohio, from Dominion Energy Inc. on March 6, 2024 for a purchase price of US$6.6 billion (including US$2.3 billion of assumed debt)"

"Excluding the contributions from, and the impact of financing, the U.S. Gas Utilities Acquisitions, DCF of $3.4 billion an increase of 8%, compared with $3.2 billion in 2023."

"Closed the previously announced sale of Enbridge's interests in Alliance Pipeline ("Alliance") and Aux Sable to Pembina Pipeline Corporation on April 1, 2024 for proceeds of $3.1 billion."

Operating Revenues: $11.038B

Some Sell Discussions: Item # 5.B. Pared ENB in Fidelity Account - SOLD 3 at $40.63 (1/16/23 Post)(profit snapshot = $24.15); Item # 3.B. Pared ENB in Fidelity Taxable Account - Sold 2 at $43.01 (8/23/22 Post)(profit snapshot = $19.2); Item # 7.A. Pared ENB in Schwab Account - Sold 2 at $46.77 (4/28/22 Post)(profit snapshot = $33.27); Item # 3.F. Pared ENB in Fidelity Account - Sold 5 at $42.4 (3/17/22 Post)(profit snapshot = $42.71); Item 1.F. Pared ENB - Sold 3 at $42.18 (2/3/2022 Post)(profit snapshot = $22.89); Item # 1.E. Sold Remaining Shares Purchased with Dividends in Fidelity Account at 40.14 (10/15/21 Post)(profit snapshot = $20.93); Item # 1.B. Sold 8 ENB at $42.36 (2/19/20 Post)(profit snapshot = $68.36); Item # 3.B. Sold 17 ENB at $40.21 (1/18/20 Post)(profit snapshot = $68.18); Item # 1.B. Sold 15 ENB at $37.61-Used Commission Free Trade (2/20/19 Post)(profit snapshot = $9.29); Item # 3 Sold 50 ENB at $39.03 (12/21/17 Post)(profit snapshot = $72.48); Sold 10 ENB at $40.14 (1/4/18 Post)(profit snapshot =  $6.21)(no item #) 

ENB Realized Gains to Date: $540.32

Remaining ENB Taxable Account Positions: 

Fidelity: 30 shares at a $29.55 average cost per share

Schwab: 10 shares with a $28.52 average cost per share

I own ENB in two Roth IRA accounts. Based on the current U.S.-Canada tax treaty, no Canadian withholding tax is taken when the dividend is paid into a U.S. citizens retirement account.  

Goal: Any profit on the shares plus the dividend

Current Position in ENBPRP:CA (reset equity preferred stock):

I own 500 shares of ENBPRP:CA with an average cost per share at C$16.05:

Price as of 6/7/24/Unrealized gain at +C$1,060

Annual Dividends for 500 shares =  C$739.75

Last Buy Discussions: Item # 2.A. Added to ENBPRP:CA - Bought 100 at C$16.2 (11/15/22 Post); Item # 3.A. Added to ENB.PRP:CA Bought 50 at C$11.98 and 50 at C$11.76 (6/13/20 Post); Item # 3.A. Added to ENB.PRP:CA-Bought 50 at C$16.47 (2/16/20 Post); Item # 2.A. Bought 50 ENB.PRP:CA at C$15.68 (11/27/19 Post)

Sell Discussions: Item # 1.A. Sold 100 out of 400 ENBPRP:CA at C$20.20 (12/31/21 Post)(profit snapshot = C$368); Item # 4.A. Sold 200 ENBPRP at C$19.91 (3/25/17 Post)(profit snapshot = C$963, contains a snapshot of a prior realized gain of US$1,458.25 converted by Fidelity into USDs from CADs.)  

Realized Gains ENB Reset Equity Preferred Stocks: 

2016 ENBPRF (100) = C$196

2017 ENBPRP (300) = C$1,814

2017 ENBPRP (200) = C$963

2021 EBGEF (150-2 trades) = US$351.52 (traded on the U.S. Grey Market)

2021 ENBPRP (100) = C$368

Totals: +C$3,341; +US$ 351.52 

My video: Canadian Reset Equity Preferred Stocks - YouTube

Current Position in ENB SU bonds: 6

The last 4 mature on 3/15/25. 

B. Pared JQC - Sold 40 at $5.71: 

Quote: Nuveen Credit Strategies Income Fund Overview

Proceeds: $228.43 

Leveraged at 38.21% as of 4/30/24

"The Fund primarily invests in senior loans, high yield corporate debt, and collateralized loan obligation (CLO) debt."

Credit Quality: 

Given the substantial leverage, the narrowing spread between the cost of borrowings and the yields of securities bought with borrowed money, and the overall low credit quality of the portfolio, I view this fund as high risk. 

Last Discussed: Item # 2.D. Sold 5+ Shares Purchased with Dividends (3/22/24 Post) I eliminated all shares purchased with dividends and turned off dividend reinvestment. I will only buy shares now when the purchase reduces my average cost per share. 

SEC Filings

Nuveen Credit Strategies Income Fund - SEC Filed semiannual shareholder report for the period ending 1/31/24. List of JQC holdings starts at page 38. 

Sponsor's website: JQC - Nuveen Credit Strategies Income Fund

Investment Category: Monthly Income Generation 

Number of Holdings (as of 4/30/24): 421 

Profit Snapshot: +$21.93

New Average cost per share:  $5.07

Snapshot Intraday on 6/7/24 after pare

Dividend: Monthly at $.054 per share ($.648 annually)

Yield at $5.07: 12.78% 

Last Ex Dividend: 6/14/24

Data Date of 6/7/24 Trade: 

Closing Net Asset Value per share: $5.92

Closing Market Price: $5.65

Discount: -4.56%

Average 3 year discount: 10.04%

Sourced: JQC-CEF Connect (Click Pricing Information Tab) 

Last Buy Discussions: Item # 6.B. Added to JQC - Bought 10 at $5.08; 10 at  $5 (11/11/23 Post); Item # 1.F. Added to JQC - Bought 20 at $5.07 (8/12/23 Post); Item # 2.A. Added to JQC - Bought 10 at $4.94 (6/17/2023 Post)

Similar unleveraged ETFs: 

SPDR Blackstone Senior Loan ETF (SRLN) and Invesco Senior Loan ETF (BKLN) I have a small ball position in SRLN. 

3. Treasury Bills Purchased at Auction: 

A. Bought 5 Treasury Bills at the 6/10/24 Auction: 

182 Day Bill

Matures on 12/12/24

Interest: $130.56 

Investment Rate: 5.377%

B. Bought 1 Treasury Bill at the 6/11/24 Auction: 

1 Year Bill

Matures on 6/12/25

Interest: $49.7

Investment Rate: 5.177%

C. Bought 5 Treasury Bills at the 6/12/24 Auction: 

119 Day Bill

Matures on 10/15/24

Interest: $86.28

Investment Rate: 5.385%

4. Equity Preferred Stocks: 

A. Eliminated CNOBP - Sold 15 at $20.27: 

Quote: ConnectOne Bancorp Inc. 5.25% Preferred Series A  (CNOBP)

Proceeds: $304.1

Issuer: ConnectOne Bancorp Inc. (CNOB) - A Bank Holding company. 

CNOB SEC Filings

CNOB SEC Filed Earnings Press Release for the Q/E 3/31/24 ("Diluted earnings per share were $0.41 for the first quarter of 2024 compared with $0.46 for the fourth quarter of 2023 and $0.59 for the first quarter of 2023.") This downtrend in E.P.S. can be described as normal for regional banks. The general problem is that the cost of deposits and borrowings has exerted downward pressure on net interest margins. The problem has been aggravated by owning longer duration and low yielding mortgage backed and other fixed coupon securities. 

Profit Snapshot: $53.25

Last Discussed: Item # 5.D.  Added  5 CNOBP at $16.25 (10/14/23 Post); Item # 5.B. Bought 10 CNOBP at $16.95 (8/5/23 Post)

CNOBP Prospectus

Par Value: $25

Fixed Coupon: 5.25% to and excluding 9/1/2026

Floating Rate: From and including 9/1/2026 at the 5 year treasury rate + 4.42% This reset date is too far into the future for me to assign a current value. Most likely the issuer would call the preferred stock rather than paying the reset coupon.  

Reset Period: 5 years. Once the coupon resets, it stays in effect for 5 years, but the issuer has the option to call at anytime.  

Dividends: Paid Quarterly, Qualified, and Non-Cumulative

Last Ex Dividend: 5/14/24 (owned as of)

5. CD Purchases - FDIC Insured: 

A. Bought 2 First National Bank 5.2% CDs Maturing on 12/22/25: 

Interest paid monthly. 

B. Bought 1 Eagle Bancorp 5.35% CD Maturing on 6/25/25: 

Interest paid monthly.  

6. Corporate Bonds: 

A. Bought 2 Cubesmart LP 4% SU Maturing on 11/15/25 at a Total Cost of 97.723: 

Issuer: Operating entity for CubeSmart (CUBE), a storage REIT who guarantees the notes: 

Prospectus 

CUBE SEC Filings 

SEC Filed Investor Presentation - June 2024 

SEC Filed Earnings Press Release for the Q/E 3/31/24 

I have a small ball position in the commons stock (9 shares at a $21.19 average cost per share)  

Finra Page: Bond Page | FINRA.org

Credit Ratings: Baa2/BBB

YTM at Total Cost: 5.68%

Current Yield at TC = 4.09%

I now own 8. 

Last Bond Offering (11/2021): 

B. Bought 2 Welltower 4% SU Maturing on 6/1/25 at a Total Cost of 98.499: 

Issuer: Welltower Inc.  (WELL) - Healthcare REIT

WELL SEC Filings 

SEC Filed Earnings Press Release for the Q/E 3/31/24 

10-Q for the Q/E 3/31/24 

Finra Page: Bond Page | FINRA.org

Credit Ratings: Baa1/BBB+

YTM at Total Cost: 5.611%

Current Yield at TC = 4.061%

I now own 5 bonds. 

C. Bought 2 Oracle 2.95% SU Maturing on 5/15/25 at a Total Cost of 97.725:

Issuer: Oracle Corp.  (ORCL) 

ORCL Analyst Estimates | MarketWatch

ORCL SEC Filings 

ORCL SEC Filed Earnings Press Release for the 4th Fiscal Q/E 5/31/24

Finra Page: Bond Page | FINRA.org

Credit Ratings: Baa2/BBB

YTM at Total Cost = 5.511%

Current Yield at TC = 3.019%

I have 4 Oracle 3.4% SU bonds maturing on 7/8/2024: 

This last purchase extends the maturity of my Oracle bond position.    

7. Exchange Traded First Mortgage Bonds: Exchange traded means that the bond trades on the stock exchange, like a common stock, rather than in the bond market. 

A. Added to EMP in Fidelity Account - Bought 5 at $21.92: 

Quote: Entergy Mississippi LLC 4.9% First Mortgage Bonds Overview

Cost: $109.58

Issuer: One of the wholly owned operating subsidiaries of the utility holding company Entergy Corp. (ETR)

ETR 10-Q for the Q/E 3/31/24 The Entergy Mississippi operating results can be found starting at page 95. 

Investment Category: Exchange Traded Baby Bond

Last Discussed: Item # 6.A. Added to EMP in Vanguard Taxable Account - Bought 5 at $22.15; 5 at $22 (12/16/23 Post); Item # 4.A. Added to EMP in Schwab Account - Bought 5 at $22.18 (12/9/23 Post)

As with other FM exchange traded bonds, I will own up to 300 shares in taxable accounts and a few more in Roth IRA accounts.  

Prospectus

Par Value: $25

Security: First Lien on substantially all assets 

Coupon: 4.9% paid on the $25 par value

Interest: Paid quarterly

Trades Flat (whoever owns the security on the ex interest date receives the entire quarterly payment)

Maturity: 10/1/2066 unless called at par value earlier at the issuer's option. 

Interest Rate Risk: Asymmetric in favor of the issuer. 

New average cost per share this account: $22.25 (55 shares)

Yield at AC = 5.51%

Next Ex Interest Date: 6/28/24

I am not concerned about the credit risk. 

Given the potentially long maturity, there is a lot of interest rate risk which remains for as long as the issuer does not exercise its early redemption right. The only reason for doing so would be that interest rates have declined sufficiently for the issuer to be better off calling EMP and offering new FM bonds with a lower coupon.  

EMP Realized Gains to Date: $464.90; Item # 5.A. Pared EMP-Sold 5 at $26.84  (6/27/20 Post); Item # 4.A. Eliminated EMP-Sold 70 at $24.87 (5/1/19 Post)(profit snapshot = $207.92); Item # 2.B. Sold 30 EMP at $24.44  (2/13/19 Post); Item # 2.A. Sold 50 EMP at $24.47 (7/22/17 Post)(profit snapshot = $66.98)

8. Bought 1 TIP in a Roth IRA Account: 

I periodically discuss purchases of TIPs in the secondary market. All of those purchases are made in a Roth IRA account. 

This was a purchase made in the secondary market. 

Maturity 4/15/2028

Price Paid: 96.195

Coupon: 1.25%

Real Yield: 2.289% 

Inflation Factor: 1.04263

Principal Paid to Seller: $1,002.96 (calculated by multiplying the inflation factor of 1.04263 x. the 96.195 price paid = 100.295793 x. 10 = $1,002,96)

The inflation factor compensates the seller for the inflation accretion to the principal amount since the TIP was originally issued.   

5 Year TIP Breakeven Inflation Rate as of 6/10/24: 2.33% (the average annual CPI over the next five years needed for the 5 TIP purchase to breakeven with a purchase of the 5 year non-inflation protected security) 

Chart 5-Year Breakeven Inflation Rate-St. Louis Fed (starts in 2003)

 

This TIP was originally issued on 4/15/23. TIPS/CPI Query Results 

The inflation factor used was for the 6/11/24 settlement date 

This information can be found at the previous link. The number is increasing slightly each day. 

9. Corporate Bond Maturities on 6/15 and 6/17: Added 6/15/24

Fidelity is the only broker that I use that will show proceeds received on Saturday or Monday on Saturday. 

Fidelity Account: $23,000

Schwab Account: $10,000 

The third party price shown for this bond as of 6/15 is 99.21, a ridiculous number, since the bond matured on 6/15 and has paid off in full. I owned 2 in my Fidelity account.     

Interactive Brokers: $5,000

I already have an excessive amount of corporate bonds maturing over the next 12 months. Yields for investment grade corporate bonds have become less attractive in the 1 to 2 year maturity range which will cause me to redirect more corporate bond proceeds into treasury bills.  

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.