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Rubicon Associates

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  • Wells Fargo: 7.1% Yield And A Word Of Caution [View article]
    You are referring to a capital call. If the issue can't be treated as tier 1 capital, or there is an overwhelming likelihood it won't, it can be redeemed at par.
    Dec 11 03:48 PM | Likes Like |Link to Comment
  • Morgan Stanley - Is 6.875% Attractive? [View article]
    I understand what you are saying, but getting a high coupon at a premium can work against you in the event of a call. One thing to consider is that lower coupons will get hit more than higher coupons as rates rise. The comfort with the yield is essential in any case as when you least want it, you will have it. Normally, I can be premium/discount agnostic (while many don't like premiums) depending on my objective. Running against a benchmark with a return bogey, has a different objective than managing a retirement account with a yield bogey.
    Dec 10 04:37 PM | Likes Like |Link to Comment
  • Fifth Third's New Preferred - 6.625% Isn't Enough [View article]
    I prefer these at 7% +, which is consistent with peers.
    Dec 9 09:24 AM | Likes Like |Link to Comment
  • Fifth Third's New Preferred - 6.625% Isn't Enough [View article]
    Good point, in the PSA complex, I would look at the PSA Xs.
    Dec 9 09:23 AM | Likes Like |Link to Comment
  • Fifth Third's New Preferred - 6.625% Isn't Enough [View article]
    Rats, my mistake. I apologize for the inclusion.
    Dec 9 08:24 AM | Likes Like |Link to Comment
  • Digital Realty's Digital Reality Is As I Expected: Weak [View article]
    Digital Realty oper fundamentals “weaker and questionable,” mgmt didn’t address needed issues on call yday, Citi’s Emmanuel Korchman writes in note.
    • Rates neutral, cuts PT to $53 from $64, removes position in REIT model portfolio
    Oct 31 02:22 PM | Likes Like |Link to Comment
  • Digital Realty's Digital Reality Is As I Expected: Weak [View article]
    Putting my money where my mouth is, I positioned DLR in three accounts this morning at $47.50. 6.50% yield - the low since Feb 2010.
    Oct 31 10:46 AM | 6 Likes Like |Link to Comment
  • Brixmor: Blackstone's Strip Center Contender [View article]
    Your comment and alschroed's comment below make sense. I would also like to see continued development on occupancy and a lower payout. Thanks for reading and commenting.
    Oct 30 04:27 PM | Likes Like |Link to Comment
  • Brixmor: Blackstone's Strip Center Contender [View article]
    Blackstone is one of the largest real estate owners on the planet. If they are selling, it is something to consider. I realize they continue to hold the largest share of the REIT, but they are bringing it public now for a reason. Great feedback, thanks.
    Oct 30 04:25 PM | Likes Like |Link to Comment
  • Dell Inc. Bonds: A Silver Lake Or A Dark Pond? [View article]
    "Dell Inc. has experienced fairly minimal variation in its default probabilities over the last decade, particularly in comparison with financial institutions." Dell is NOT a financial institution and not subject to the same volatility nor default and recovery assumptions. Don't understand the validity of the comparison.

    Dell’s Pre-LBO Unsecured Debt Cut to B1 from Baa1 by Moody’s - so much for the bottom of the IG range.
    Oct 30 02:59 PM | Likes Like |Link to Comment
  • Citigroup's New Preferred Stock - 7% Is Attractive [View article]
    Do you buy dividend paying equities of "junk" rated companies? Non-cumulative and lower in the capital structure. Just saying. Buffet must only buy investment grade companies - unlike his namesake.
    Oct 29 04:42 PM | 1 Like Like |Link to Comment
  • Citigroup's New Preferred Stock - 7% Is Attractive [View article]
    Normal long rates? I am not sure what normal rates are as they vary depending on the cycle, financial conditions... Then you must consider the investment grade market at 200 below "normal rates" to be insane and therefore a huge short. Sorry, the logic isn't logical. If you can invest in historical averages, please share as I can only invest in what exists today.
    Oct 29 11:12 AM | 2 Likes Like |Link to Comment
  • First Republic Bank - 7% And Solid [View article]
    Z, Like to convert preferred strategies, but the convert option still seems expensive. I own the KFN's as well (prefs) and plan to do another review of the company given the CLO/CDO market dynamics and the continued run-off of their existing portfolio. The royalties in the company make me somewhat nervous as it is a different approach and was begun when the CLO market shut down. The DKT's are interesting as well and I like Deutsche. As always, great points and ideas.
    Oct 28 08:49 AM | Likes Like |Link to Comment
  • First Republic Bank - 7% And Solid [View article]
    As they are bank preferreds, I expect the non-cum nature of them. Given the financial profile of the bank (their credit), I do not see a curtailment or deferral. If it were a weaker bank, this would be more of a consideration.
    Oct 28 08:46 AM | Likes Like |Link to Comment
  • First Republic Bank - 7% And Solid [View article]
    Dividends are considered dividends for US tax purposes. This should make them QDI and taxable at the dividend rate, not interest.
    Oct 28 08:44 AM | Likes Like |Link to Comment
COMMENTS STATS
1,760 Comments
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