Mark Gottlieb

Mark Gottlieb
Contributor since: 2012
Company: Mark Gottlieb Consulting
I still see B- for S&P on eTrade. Do you see any updates from S&P since then?
S&P still rates the Peabody Energy bonds (e.g. 2018 and 2020s) B-. Amazing considering they are paying about 120% YTM and they have paid all coupons to date. This shows commentary from S&P re the bond rating of B- for the subordinated debt
Another great article on Peabody. I couldn't agree more with your logic and am onboard for the ride back up on Peabody bonds. I suspect the ship will begin to sail as Peabody closes in on an assets sale to Bowie for $358 million. There aren't any other places where you can get a 93% YTM on a 6% bond just 2 years out at a price of 17.11 on the dollar (the Cusip # is 704549AK0).
This could be a problem for Fannie and Freddie investors unless there is relief from the courts.
You can buy RIG bonds from most brokerage firms (e.g. eTrade, Schwab, TD Ameritrade, Merrill Lynch, etc.).
Check out Global Marine Inc Sr Glbl Nt 7%28 (379352AL1). Priced at 63 with 13% YTM. It is owned by Transocean and has a similar credit rating to Transocean bonds (S&P BB+). Over last month it is down 11% while Transocean 7 1/2s down just 3%. I own a lot, great deal in my opinion.
Assuming this is accurate, here are the SHLD holdings of FAIRX If FAIRX has anywhere near 13% of its assets in FAIRX, I would have figured FAIRX would have tanked this week with SHLD -31%. 26.5 million SHLD shares X 28.07 =744 million of 5.6 billion in assets =13% in SHLD.
I'm not so sure how much Berkowitz owns. If he still had a large SHLD position, his FAIRX fund would be cratering this week along with SHLD stock. Maybe he unloaded a lot of SHLD before this latest price drop and is now buying more cheap SHLD stock or is more interested in owning the Seritage shares. I wonder how much did the Seritage rights take off the value of SHLD shares this week.
Shawn, I sorted through the controversy on AFSI and MHLD. It sounded like someone trying to make money shorting AFSI. AFSI approved buying back its stock Insiders of AFSI have been buying a lot- MHNC was up 7% since I bought it. Lots of preferred stocks had a healthy new year's bounce after what I suspect was lots of year end tax selling. I'll see if their prices hold at these somewhat higher levels as trading gets back to normal this week. I think they should and think Maiden and AmTrust have more room to run. It's still best to be diversified with preferred stocks/fixed income and Doug knows the most about preferred stocks.
I personally like MHNC (Maiden Holdings) which is an exchange traded debt security rated BBB-by S&P. It was issued on 11/18/13 at 25 and trades at 20.69 for a 9.36% current yield
MHNC also is a great buy in my opinion- Maiden Holdings reinsures AFSI and dropped with AFSI.
Investment grade exchange debt security- 11/18/13 IPO was at 25, currently 20.70 and 9.36%. I haven't seen anything this attractive in fixed income since I was scooping up investment grade European banking and telecom bonds last year in the 9-10% range.
I picked up some more Maiden on Friday, 7 3/4s at 20.70 (symbol MHNC) which came out at 25 about 1 month ago. Nice deal, 9.3% for this investment grade security.
Look at all the big recent insider buying at AFSI including - I wouldn't be surprised if a AFSI short squeeze takes place soon.
MH_PA also looks good to me after today's drop.
At current pricing I like MHNC better. MHNA bounced nicely off the day's lows, MHNC didn't bounce much.
Another great buying opportunity for MHNA today.
The preferred shares of Maiden were a great deal before today and I suspect a much better deal now. Sounds like this was market manipulation to me.
I wouldn't be surprised if AmTrust and Maiden bounce back a lot tomorrow.
Sounds like market manipulation to me. I wouldn't be surprised if the Maiden preferred shares have a big bounce soon.
Agreed- hopefully they'll have some changes which will help the bond. Part of the decline has been the rate uptrend but Telecom Italia has been underperforming. It probably is a decent buy at this level assuming rates don't spike a lot from here and assuming it doesn't get downgraded to junk.
Nice articles. It seems the lower coupon preferred stocks are getting clobbered way more than the higher coupon ones (e.g. at 20.09 off from its 25 IPO) with all the fear of rising rates. I was lucky to shield the overall decline this year with higher coupon preferred stocks 7-10% (e.g. VLY_PA, MT_PA, MH_PA, MRH_PA, KFN.P, SAN_PE, AHL_PA). Most are investment grade or in the BB area with their bonds/notes rated investment grade. I picked up some more VLY_PA with what I perceive as little risk at pennies above par including its recent X Div (it had partial calls last year and earlier this year). I was lucky to pick up more MT_PA when it dropped to 24.96 earlier this year (8 1/2% coupon).
Morningstar good to see discounts for Closed End Funds in the and average discounts.
Good article. The economy still appears weak. The big question is how much fixed income assets will leave fixed income and come into stocks as investor follow past returns which isn't a great idea. The contrarian in me thinks bonds may not be such a bad investment at these levels given the economy. Glad Jeff Gundlach of DoubleLine feels the same way.
Mktneutralhedger - I agree, Telecom Italia bonds look like a good value here.
Party at Wireless Tech's house! LOL I'm glad I didn't sell these.
Your technique is great when you can find them. See anything meeting your parameters in preferred stocks that is investment grade and paying a competitive yield?
Got That Swing- glad you picked up some Telecom Italia bonds at the currently depressed pricing. This is the only European bond I like at the current levels. I still own Telefonica, BBVA, Abbey (Banco Santander), and Arcelor Mittal which I picked up when they were cheap but they've all risen quite a bit.
Fooflt13- the inaccuracy in the title's been fixed.