The Preferred Stock Marketplace For 2013 [View article]
AIG's third party trust preferreds look interesting, symbols MKS and XFP. Selling closer to $24 that $25, and likely called at par. Both yield in the high 6% range and are investment grade.
BAC's CFC-A, CFC-B, MER-F, MER-E are also interesting. They are slightly below investment grade but are guaranteed by BAC. They yield about 7% and are trust preferreds that are likely to be called at par, which will act like a magnet to face value.
Although the real deals of a couple years ago on the trust preferreds are gone, here is an article I wrote about them here on SA. http://seekingalpha.co...
U.S. rail traffic is closing the year with big gains, as intermodal traffic surged 10.2% this week vs. last week’s 8% gain and the 2.55% 12-week moving average. Among the top carload commodity groups: petroleum products +71.5% Y/Y; crushed stone, sand and gravel, +29.5%; lumber and wood products, +27.3%. Decliners: metallic ores -26.3%; coal -11.1%. [View news story]
Carloads down 3% year to date. Containers up 3.4% YTD Total tonnage down 2.2%.
Going over the fiscal cliff "looks like where we're headed," says Senate Majority Leader Reid. S&P 500 losses accelerate, -0.7%. [View news story]
So Reid has lost control of the Senate? He can't get a bill through. Isn't that what the media was reporting about Boehner. Obama failed in leadership by insisting that taxes raise on the rich when the house was willing to give him nearly the same revenues in limiting tax deductions.
The U.S. will hit its $16.4T statutory debt ceiling on Dec. 31, Tim Geither warns in a letter to Harry Reid. Geithner says the Treasury will create $200B in "headroom" by means of "extraordinary measures," which he says would last the government two months in "normal circumstances." [View news story]
Isn't that convenient...Dec 31st, the deadline day for the fiscal cliff. Now they can toss that into the negotiations.
Lawmakers in the U.S. see a quick-patch solution as the best hope of averting the automatic tax increases and spending cuts set to hit on January 1. Over the weekend the blame game was in full cycle while key Senators hit the talk TV circuit. The last word from President Obama is that he would immediately sign a bill into law extending tax cuts for those making $250K or less. [View news story]
Obama did win the national election. However, just because he won a congressman still has to vote as representative of his district. Right now in the legislative branch, (senate and Congress) there are about 284 republicans compared to 251 or so democrats. Right now there are more elected officials in total against raising taxes on anyone. Our system is set up so the large population centers have a hard time running over the more rural and less populated areas.
Lawmakers in the U.S. see a quick-patch solution as the best hope of averting the automatic tax increases and spending cuts set to hit on January 1. Over the weekend the blame game was in full cycle while key Senators hit the talk TV circuit. The last word from President Obama is that he would immediately sign a bill into law extending tax cuts for those making $250K or less. [View news story]
During the Clinton years we had an economy on steroids. We had the baby-boomers hitting their most productive years. The boomers were also hitting the age where they on average build or occupy their most expensive home. The opposite is true today. The boomers are becoming net consumers of goods and services and will weigh on the economy as they downsize.
Lawmakers in the U.S. see a quick-patch solution as the best hope of averting the automatic tax increases and spending cuts set to hit on January 1. Over the weekend the blame game was in full cycle while key Senators hit the talk TV circuit. The last word from President Obama is that he would immediately sign a bill into law extending tax cuts for those making $250K or less. [View news story]
Keep in mind these tax increases are on EARNED income. The very truly rich get much of their income from dividends and capital gains. What is Obama saying about that type of income? My business partner has earned income over $250K from a small business he owns. He never sees a good chunk of that income because he reinvests it in inventory and capital improvements to grow his business. That money comes straight out of profits that are passed through to him as earned income. If taxes go up next year, he will have less to invest. As his business grows he hires more workers. Do we really want to be raising taxes on these job creators? The number of small businessman that are in his position is huge.
Lawmakers in the U.S. see a quick-patch solution as the best hope of averting the automatic tax increases and spending cuts set to hit on January 1. Over the weekend the blame game was in full cycle while key Senators hit the talk TV circuit. The last word from President Obama is that he would immediately sign a bill into law extending tax cuts for those making $250K or less. [View news story]
"The last word from President Obama is that he would immediately sign a bill into law extending tax cuts for those making $250K or less. "
That should read "The last word from President Obama is that he would immediately sign a bill into law raising taxes for married couples earning over $250k, and individuals earning more than $200k."
Or, "The last word from President Obama is that he would immediately sign a bill into law sucking $X bil out of the economy next year by raising taxes for married couples earning over $250k, and..."
American Capital Agency Corp. (AGNC) declares $1.25/share quarterly dividend, in line with previous. For shareholders of record Dec. 27. Payable Jan. 28. Ex-div date Dec. 24. Shares +2.3% AH. (PR) [View news story]
CEO of AGNC bought a chuck of shares this month at higher prices. A director added some as well.
Fannie And Freddie Reform Plan Modeled After AIG [View article]
How is that any different from from companies like CSCO? At least FnF paid a decent dividend. I think FnF had a guideline for executive pay at 75% of comparable financial companies. I think with some research you would find that FnF did not pay above average salaries. That is a fallacy spread by the media IMO.
Why the cliff matters: Eliminating mandated spending cuts and extending 2012's tax regime into 2013 could add 2.9% to GDP, according to Bloomberg's Joe Brusuelas. Of course, what the status quo means for the finances of the government down the road is a different story. [View news story]
" The best course is to agree on things which are acceptable to both parties -"
Not really. If the republicans were to do that they might as well just agree to raising taxes on those earning over $200k. ($250k for couples). The democrats would just let the time run out on the rich and the tax increases would become automatic. Yeah, one could argue that those earning less are being held hostage, but on the other hand, why should those earning more carry a bigger share than what they are now?
Why the cliff matters: Eliminating mandated spending cuts and extending 2012's tax regime into 2013 could add 2.9% to GDP, according to Bloomberg's Joe Brusuelas. Of course, what the status quo means for the finances of the government down the road is a different story. [View news story]
Just another way to spin that if the spending cuts and tax increases were to take place it could cut GDP by about 2.9%. A better number I would like to see is what GDP is projected to be with or without. Even if they kick the fiscal cliff down the road GDP for next year could still be low. Whatever they decide it sounds like tax revenues will increase some, and so will spending cuts - a net negative for GDP.
Nov. ISM Manufacturing Index:49.5 vs. 51.7 consensus and 51.7 prior. Prices index 52.5 vs. 55.0 prior. Employment 48.4 vs. 52.1 prior. Inventories 45.0 vs. 50.0 prior. New orders 50.3 vs. 54.2 prior. [View news story]
Section 179 stimulus has big changes coming year end unless extended and could weigh on manufacturing capital goods.
IRC Section 179 has provided businesses with the ability to substantially accelerate depreciation on qualified purchases for the last decade. The limitation on the available deduction grew to $500,000 during 2010 and 2011 as Congress intended for the increased limits to assist businesses in light of the recession. For 2012, the available deduction has been decreased to $139,000. Without intervention by Congress, the deduction will decrease further for 2013 to $25,000.
IRC Section 179 allows businesses to deduct or expense the purchase price of equipment and machinery, as well as certain vehicles and software in the year of purchase, as opposed to depreciating the equipment over the life of the asset. There are certain limitations that apply to the Section 179 deduction including a cap on total equipment purchases ($560,000 for 2012, to be reduced to $200,000 for 2013.) Additionally, the Section 179 deduction may not exceed taxable income for the year in which it is taken. In addition to Section 179, accelerated (bonus) first year depreciation is also available for certain new fixed asset purchases. For 2012, the bonus depreciation available for purchases decreased from 100% in 2011 to 50% in 2012. The bonus depreciation deduction is also scheduled to expire in 2013 without intervention by Congress.
More on the fiscal cliff talks: The President's opening bid - delivered this afternoon by Tim Geithner - calls for a $1.6T tax increase, a $50B economic-stimulus program, and delivering to the WH the power to raise the federal debt limit without congressional approval. It's a "step backward," says Mitch McConnell. It sounds more like what it's described as: An opening bid. [View news story]
The Preferred Stock Marketplace For 2013 [View article]
BAC's CFC-A, CFC-B, MER-F, MER-E are also interesting. They are slightly below investment grade but are guaranteed by BAC. They yield about 7% and are trust preferreds that are likely to be called at par, which will act like a magnet to face value.
Although the real deals of a couple years ago on the trust preferreds are gone, here is an article I wrote about them here on SA.
http://seekingalpha.co...
U.S. rail traffic is closing the year with big gains, as intermodal traffic surged 10.2% this week vs. last week’s 8% gain and the 2.55% 12-week moving average. Among the top carload commodity groups: petroleum products +71.5% Y/Y; crushed stone, sand and gravel, +29.5%; lumber and wood products, +27.3%. Decliners: metallic ores -26.3%; coal -11.1%. [View news story]
Containers up 3.4% YTD
Total tonnage down 2.2%.
Nothing to see here...
http://bit.ly/UywhN2
Going over the fiscal cliff "looks like where we're headed," says Senate Majority Leader Reid. S&P 500 losses accelerate, -0.7%. [View news story]
The U.S. will hit its $16.4T statutory debt ceiling on Dec. 31, Tim Geither warns in a letter to Harry Reid. Geithner says the Treasury will create $200B in "headroom" by means of "extraordinary measures," which he says would last the government two months in "normal circumstances." [View news story]
Lawmakers in the U.S. see a quick-patch solution as the best hope of averting the automatic tax increases and spending cuts set to hit on January 1. Over the weekend the blame game was in full cycle while key Senators hit the talk TV circuit. The last word from President Obama is that he would immediately sign a bill into law extending tax cuts for those making $250K or less. [View news story]
Lawmakers in the U.S. see a quick-patch solution as the best hope of averting the automatic tax increases and spending cuts set to hit on January 1. Over the weekend the blame game was in full cycle while key Senators hit the talk TV circuit. The last word from President Obama is that he would immediately sign a bill into law extending tax cuts for those making $250K or less. [View news story]
The opposite is true today. The boomers are becoming net consumers of goods and services and will weigh on the economy as they downsize.
Lawmakers in the U.S. see a quick-patch solution as the best hope of averting the automatic tax increases and spending cuts set to hit on January 1. Over the weekend the blame game was in full cycle while key Senators hit the talk TV circuit. The last word from President Obama is that he would immediately sign a bill into law extending tax cuts for those making $250K or less. [View news story]
Lawmakers in the U.S. see a quick-patch solution as the best hope of averting the automatic tax increases and spending cuts set to hit on January 1. Over the weekend the blame game was in full cycle while key Senators hit the talk TV circuit. The last word from President Obama is that he would immediately sign a bill into law extending tax cuts for those making $250K or less. [View news story]
That should read "The last word from President Obama is that he would immediately sign a bill into law raising taxes for married couples earning over $250k, and individuals earning more than $200k."
Or, "The last word from President Obama is that he would immediately sign a bill into law sucking $X bil out of the economy next year by raising taxes for married couples earning over $250k, and..."
American Capital Agency Corp. (AGNC) declares $1.25/share quarterly dividend, in line with previous. For shareholders of record Dec. 27. Payable Jan. 28. Ex-div date Dec. 24. Shares +2.3% AH. (PR) [View news story]
Hatteras Financial: Bucking The Agency Trend May Be The Only Viable Option [View article]
Fannie And Freddie Reform Plan Modeled After AIG [View article]
Why the cliff matters: Eliminating mandated spending cuts and extending 2012's tax regime into 2013 could add 2.9% to GDP, according to Bloomberg's Joe Brusuelas. Of course, what the status quo means for the finances of the government down the road is a different story. [View news story]
Not really. If the republicans were to do that they might as well just agree to raising taxes on those earning over $200k. ($250k for couples). The democrats would just let the time run out on the rich and the tax increases would become automatic. Yeah, one could argue that those earning less are being held hostage, but on the other hand, why should those earning more carry a bigger share than what they are now?
Why the cliff matters: Eliminating mandated spending cuts and extending 2012's tax regime into 2013 could add 2.9% to GDP, according to Bloomberg's Joe Brusuelas. Of course, what the status quo means for the finances of the government down the road is a different story. [View news story]
Nov. ISM Manufacturing Index: 49.5 vs. 51.7 consensus and 51.7 prior. Prices index 52.5 vs. 55.0 prior. Employment 48.4 vs. 52.1 prior. Inventories 45.0 vs. 50.0 prior. New orders 50.3 vs. 54.2 prior. [View news story]
IRC Section 179 has provided businesses with the ability to substantially accelerate depreciation on qualified purchases for the last decade. The limitation on the available deduction grew to $500,000 during 2010 and 2011 as Congress intended for the increased limits to assist businesses in light of the recession. For 2012, the available deduction has been decreased to $139,000. Without intervention by Congress, the deduction will decrease further for 2013 to $25,000.
IRC Section 179 allows businesses to deduct or expense the purchase price of equipment and machinery, as well as certain vehicles and software in the year of purchase, as opposed to depreciating the equipment over the life of the asset. There are certain limitations that apply to the Section 179 deduction including a cap on total equipment purchases ($560,000 for 2012, to be reduced to $200,000 for 2013.) Additionally, the Section 179 deduction may not exceed taxable income for the year in which it is taken.
In addition to Section 179, accelerated (bonus) first year depreciation is also available for certain new fixed asset purchases. For 2012, the bonus depreciation available for purchases decreased from 100% in 2011 to 50% in 2012. The bonus depreciation deduction is also scheduled to expire in 2013 without intervention by Congress.
More on the fiscal cliff talks: The President's opening bid - delivered this afternoon by Tim Geithner - calls for a $1.6T tax increase, a $50B economic-stimulus program, and delivering to the WH the power to raise the federal debt limit without congressional approval. It's a "step backward," says Mitch McConnell. It sounds more like what it's described as: An opening bid. [View news story]