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  • Orchid Island Capital Plummets, One Analyst Predicted It [View article]
    And the cost of shorting a 20% div yield ORC?
    Jun 29, 2015. 03:42 PM | 1 Like Like |Link to Comment
  • Bank Preferred Rundown - Morgan Stanley [View article]
    I didn't select any of the trust preferred (despite the fact they are cumulative) due to the capital treatment provision. We have been seeing firms redeem the trust preferreds due to the change in what is considered tier 1 capital.
    Jun 28, 2015. 11:36 PM | Likes Like |Link to Comment
  • Bank Preferred Rundown - Morgan Stanley [View article]
    excellent point. I will include the calcs going forward. It is stripped yield divided by adjusted duration.
    Jun 28, 2015. 01:33 AM | Likes Like |Link to Comment
  • Bank Preferred Rundown - Morgan Stanley [View article]
    there is nothing immoral about the non cumulative nature of bank preferred - no more so than an equity dividend that gets cut. The possibility of a dividend stop is a risk, and one that you should get compensated for based on the probability of a stoppage. yes, you can buy all REIT preferred (and I am a fan and have written extensively on them), but this is simply taking a different form of risk. a preferred stock portfolio should not be singularly invested in REITs. Anyone involved in preferreds cannot simply nix non-cum. while I understand your point, I could never advocate a portfolio solely focused on REITs (unless you have a portfolio mandate that calls for it and has a balance elsewhere).
    Jun 28, 2015. 01:32 AM | 1 Like Like |Link to Comment
  • Bank Preferred Rundown - Morgan Stanley [View article]
    preferred stock trades with accrued dividends, so the price reflects the price of the instrument and the accrued dividend. the stripped yield takes out the accrued dividend and shows what the yield is on the preferred stock at its "clean" price. this allows for comparison between preferred with different accounts of accrued dividends.
    Jun 28, 2015. 01:24 AM | 1 Like Like |Link to Comment
  • Digital Realty: 4% And Good For The Environment [View article]
    I can do that John, thanks for the idea (and obviously, thanks for reading).
    Jun 22, 2015. 11:59 PM | Likes Like |Link to Comment
  • Digital Realty: 4% And Good For The Environment [View article]
    Consider that many of the large institutional shareholders (think CALPERS) have green mandates and ESG is finding its way to every proxy. The shareholders want this, and will demand it. On top of this, green buildings have significant implied value.
    Jun 22, 2015. 11:58 PM | Likes Like |Link to Comment
  • Digital Realty: 4% And Good For The Environment [View article]
    But building an energy efficient data center makes sense. LEED certified qualifies as green, purchase power contracts from renewable sources qualifies. That said, Tesla batteries would be nice.
    Jun 22, 2015. 12:50 AM | Likes Like |Link to Comment
  • Digital Realty: 4% And Good For The Environment [View article]
    It is. I will be honest, fixed income doesn't get page views, so if you are in it for the money, it can be disappointing. I don't write for the money (I have another gig for that), I do it because it is what I know and love and I get to present ideas and learn from the feedback. Thanks for reading.
    Jun 22, 2015. 12:47 AM | 1 Like Like |Link to Comment
  • Digital Realty: 4% And Good For The Environment [View article]
    Until they come up with the green projects the funds will be allocated to (they aren't "shovel ready"), they will pay down their revolver. As the projects arise, they will allocate cash/credit to them up to the amount of the bonds. Essentially, they issue now, build later and do journal entries as they go.
    Jun 22, 2015. 12:39 AM | Likes Like |Link to Comment
  • Investing In One Sucker Yield REIT Can Sink The Fleet [View article]
    Right on Brad! RMR is toxic and the only hope these REITs have is another shareholder coup similar to what we saw at Commonwealth. Anything RMR is a suckers bet as the only people who stand to make money is the Portnoy clan.
    Jun 8, 2015. 09:04 AM | 5 Likes Like |Link to Comment
  • InfraREIT: Another Boundary-Pushing REIT [View article]
    Spot on Reuben. T&D is a great sector (you mention ITC, which is absolutely right), but not in this form and at the management/incentive fee. If it was a pure play, separate entity, maybe, but not like this. CSAL is another weak link until it can get more diversity of customers. It must be said, however, that this type of entity can work, as we see with Granite and their mega customer Magna. Good article.
    Jun 2, 2015. 09:14 PM | 1 Like Like |Link to Comment
  • Peabody Energy, Cloud Peak sink on negative Goldman Sachs view [View news story]
    BTU 2nd lien debt was off over $2. trading low 70s with a 10% coupon. doesn't say much about the perception of value in the name.
    Jun 1, 2015. 07:11 PM | Likes Like |Link to Comment
  • Banco Santander: One Of The Best Banks In The World Sells At A Discount [View article]
    Of course, only 17% of profits are derived from Spain and Portugal, so they are not a "ground zero" bank. Yes, 20% of their loan portfolio is in Spain, and NPLs aren't truly reliable, but they are better positioned than most (BBVA is also worth a look). Fully loaded capital ratios are below US peers, but still strong, Coverage ratios are decent (yes, I get the understatement of NPLs) and it came out strong in ECB stress tests (yes, I get those were pretty weak). All in, SAN is not your biggest concern in Europe and is not ground zero. The "bet" is on Latin America - as it has been with the large Spanish banks for some time. The elimination by Ana Botin of the scrip divvie stinks due to tax implications (can't get credit in a tax deferred account), but she has a decent grasp of the environment and the business. Can't paint the bank Spanish due to its name or home country. I would be more worried about Deutsche personally.
    May 27, 2015. 03:59 PM | 3 Likes Like |Link to Comment
  • Northstar Is Far From An Intelligent REIT Alternative [View article]
    don't think the three year numbers include the spin of NSAM. They have outperformed everyone in the space
    May 18, 2015. 08:55 AM | 8 Likes Like |Link to Comment
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