Seeking Alpha


Send Message
View as an RSS Feed
View 2whiteroses' Comments BY TICKER:

Latest  |  Highest rated
  • Retirement Strategy: What If I Had Lots Of Money? [View article]
    Creese - I have accounts at two brokerages and if your experience is similar to mine, you'll find you're giving up a lot (relatively) buying your CDs through your brokerage accounts as opposed to directly. For example, the best 1 yr CD available at my broker is .85% and that's for one of the Puerto Rican banks. There are well known bank 1 year CDs available as high as 1.25% outside the brokerage networks according to bankrate and, though the absolutes are still peanuts, the percentage yield improvement is significant.
    Nov 27, 2015. 05:59 PM | Likes Like |Link to Comment
  • BreitBurn Energy Partners: Q3 Results In Line With Guidance, But 2016 Needs A Significant Recovery [View article]
    Smight -

    A novice???? You sure don't sound novice-like so congrats on being a learned novice.... I've never shorted anything personally, but I did when I was an institutional muni bond trader way back when. As I mentioned, what I wrote was sort of a stream of consciousness wondering taken to paper, but I surely understand your reasoning on "arbing the capital structure." It makes a whole lot of sense on paper, but who knows if it could work in practice given the thinness of all entities.... And as far as who is responsible for a past coupon once it's finally paid, I suppose you're probably right that the last one off the rollercoaster, the one, if any, who's short WHEN the back coupon gets paid would be liable, not the one who was short when it was passed... Record keeping any other way would be a nightmare......It wouldn't seem fair, but I suppose there'd be no other way...
    For the record, check out the Additional Disclosure at the end of EA's article. He is short BBEPP according to that.
    Nov 6, 2015. 03:06 PM | 1 Like Like |Link to Comment
  • BreitBurn Energy Partners: Q3 Results In Line With Guidance, But 2016 Needs A Significant Recovery [View article]
    Smight -

    Your comments and Elephant's being short BBEPP leaves me with some stream of consciousness questions and a general comment. If you short BBEPP, aren't you responsible for the coupon? If that's correct, that's a monthly negative to a successful short I would think... Then I was also wondering, if Breitburn suspended BBEPP dividends, would someone still be responsible for the dividend whenever it gets paid? Since BBEPP is cumulative, somebody's responsible for a suspended dividend whenever the dividends are resumed, is it the guy who was short when the dividend was passed or Bretiburn? So could the shorter of a cumulative preferred have a continuing liability well into the future if the divvy's missed while he's short?
    Then my comment is, I do not understand making comparisons between a perpetual preferred and bonds with stated, relatively short maturities... To me, maturity matters, but I suppose taken the thought to its logical conclusion, it only adds to the validity of the conclusion that BBEPP is too high.
    Nov 6, 2015. 11:17 AM | 1 Like Like |Link to Comment
  • Annaly Capital Management And The 3 Series Of Preferred Shares [View article]
    In reading your article and the comments, I can't help but think most are not aware of the website quantumonline which provides a good starting point for research on most listed preferreds including every one mentioned so far. In fact, it even tells you what happened to NLY-B which was apparently a mandatory convertible preferred with final conversion date 4/2/12. Practically all issues shown on quantum provide links to the original prospectus and, if you're looking to discover if a particular company has any listed preferreds, it gives you a link to searching that way as well.... For example, I just entered symbol NLY and then went to the link to Find All Related Securities for NLY and found all 4 preferreds, including the B's which are identified as inactive while giving the reason why.
    Oct 27, 2015. 09:53 AM | Likes Like |Link to Comment
  • Aberdeen Asia-Pacific Income: Emerging Markets Bonds At A 17% Discount [View article]
    Mevo and Gratian - Many thanks for the leads and explanations on understanding ROC better. I own FAX in an IRA, so that may be partially why the tax implications have not been particularly important in my thoughts on ROC, however, there's still something illogical about this to me. For example, it would seem to me the logical conclusion to your point, Mevo, would be to be rooting for an ever expanding disparity between price and NAV so you can capture an even greater discount for the ROC portion of the dividend. That's not what I hope for when I time my purchases of CEFs at what I hope to be an aberrationally high discount to NAV. And in fact, I also own Special Opportunities Fund, [SPE] who's primary strategy is to invest in CEFs trading at high discounts and then proactively lobby for changes to close the gap. I might point out that SPE right now is ironically trading at a large discount to its own NAV, but that's beside the point.... So is SPE's strategy a faulty one? Are they advocating for a bad outcome? To me, ROC contributes to a downward pressure on NAV that I would hope not to happen and in most cases, the purpose of the ROC portion of dividend policy for most CEFs doesn't appear to be tax efficiency or miscalculation of expected overall income but to be able to overstate its yield... Is that too simplistic a conclusion?
    Oct 14, 2015. 11:41 AM | Likes Like |Link to Comment
  • Aberdeen Asia-Pacific Income: Emerging Markets Bonds At A 17% Discount [View article]
    Levis - Would you explain your rationale a bit more? To me paying a dividend partially using return of capital has the effect of lowering the NAV drip by drip. If a CEF had a constant NAV over time and continuously paid out return of capital in dividend, that constant NAV would constantly go down. And as I mentioned, to me, paying a dividend partially with return of capital technically overstates the dividend yield since part of what's happening is the company is using your already invested money to pay you. I don't think that's generally taken into account by many retail investors who do nothing more than see the dividend yield printed somewhere......What am I missing? Your point about liquidating has nothing to do with dividend paying. It's the nature of the beast on practically all CEFs since a majority of them do trade at discounts to NAV.
    Oct 13, 2015. 08:07 PM | Likes Like |Link to Comment
  • Aberdeen Asia-Pacific Income: Emerging Markets Bonds At A 17% Discount [View article]
    To me, the fact that about 1/3 of the dividend is Return of Capital is an important factor you have not mentioned in considering the dividend yield as stated.... In a way it's a good news/bad news situation. I'm not a particular fan of managed return funds because I believe it tends to have an effect of overstating the return in most search engines and that's the bad news. It's almost as if the 9.23% yield you point out should come with an asterisk. The good news is, if you estimate the amount of dividend paid annually strictly from income to be 24.6 cents, then the yield on that amount based on Friday's close of 4.70 is still 5.23%. For the quality and relative short duration of their bond portfolio, that's still a bargain imho... I'm long FAX...
    Oct 12, 2015. 08:17 PM | 3 Likes Like |Link to Comment
  • Consider Whitehorse Finance Baby Bonds For A Steady 6.5% Yield [View article]
    Sorry, the language didn't copy.... It reads, "The Notes.... will be structurally subordinated to any existing or future indebtedness of any of our Subsidiaries, financing vehicles, or other entities (as described ....)" I know I've wondered just exactly what that means in some companies that are structured like holding companies where all activity actually occurs at the subsidiary level, not meaning to imply that WHF is so structured necessarily.... Mine was probably a misplaced comment.
    Oct 10, 2015. 07:56 PM | Likes Like |Link to Comment
  • Consider Whitehorse Finance Baby Bonds For A Steady 6.5% Yield [View article]
    Like I said, I'm probably just confused so you're absolutely right in not beign sure what I mean because maybe I don't know what I mean either.... What I do know, speaking in generalities, as that all of the Senior Notes of baby bonds that I've looked at all have language similar to this language in WHFLB's prospectus which led me to wonder where you stand in line in worst case.... It might be pure boilerplate and absolutely meaningless in the case of WHFLB, but it's always made me wonder......
    Oct 10, 2015. 07:50 PM | Likes Like |Link to Comment
  • Consider Whitehorse Finance Baby Bonds For A Steady 6.5% Yield [View article]
    Thanks for the article. I'm in a few of these listed baby bonds but had not looked into Whitehorse. From a credit point of view, one thing I have never been able to figure out on these is what are you really getting from a credit point of view? I understand the 200% asset coverage ratios coverage under the 1940 Act, and in fact, there are even a few PREFERREDs, mind you, not notes, such as Tortoise and Kayne Anderson, that have voluntarily agreed to minimum coverage ratios of 225% as opposed to 200%, but what confuses me a bit is that all of these seemed to be structured to be senior notes of essentially holding companies whereby the debt of the holding company is junior to the debt of all subs. So if you're senior debt of a shell holding company, what is your real credit standing? I only point this out as maybe you can clear up my confusion.... Are the true assets held in the subsidiaries or at the holding company level? I am long SAQ, Saratoga Investment Corp Senior Note 7 1/2% 5/31/2020, a BDC, and also WSFSL and CUBS senior notes issued by banks.
    Oct 10, 2015. 12:17 PM | Likes Like |Link to Comment
  • Prospect Capital: It's Time [View article]
    Without having delved deeply into this there are a few questions that come to mind immediately: 1. Why would you advocate a buy back of shares right now? Given S&P's action, wouldn't a stock buyback have the impact of adding more pressure on the rating by increasing debt to equity ratios? 2. Aren't all comparison of how big a discount price is to NAV out of date? Isn't the only NAV published right now one that's from June? Am I correct they only update NAV quarterly? What are the odds that NAV number is accurate today OR more importantly, improved since then?
    Sep 30, 2015. 04:21 PM | 5 Likes Like |Link to Comment
  • Single-Family Home REITs - The New Darling Of Wall Street? [View article]
    There seems to be one, maybe two, institutional sellers of AMHpB in the market right now... At first, the seller stopped out at 25.10, but it seems as though he couldn't get it all done at that price but still wants to exit the position for whatever reason.... Maybe he wants out by quarter's end, who knows.... In any event, I've seen this before on this one and it's always represented opportunity... I think for the most part, AMH preferreds seem to be retail products so when relative size is in the market to sell, it's tough to get it done. You can see this right now when comparing volume and price on AMHpB this week when compared to the almost identical AMHpA.
    Sep 24, 2015. 10:01 AM | Likes Like |Link to Comment
  • Oxford Lane Capital Sell-Off Is Irrational [View article]
    Chris - I don't disagree, however, the risk that bothers me is not the potential call. I think that risk is baked in to the current price on the up side at slightly above par. My concern is the potential for buying a credit at a AAA price (NOT using rating quality actually applicable to ECCA itself for this example) when you fully expect it to rapidly become A quality. In other words, I wonder if it would be prudent to pay up for ECCA right now when there's a high likelihood of the spread differential to OXLCN or OXLCO to narrow when ECC is more likely to issue more preferred. Again, I have not done my work and am only expressing a gut feeling (or yet another excuse on my part to do what I seem to be best at actually doing which is nothing).
    Sep 14, 2015. 08:56 AM | 1 Like Like |Link to Comment
  • Oxford Lane Capital Sell-Off Is Irrational [View article]
    I'm thinking you mean ECCA, not ECAA. As what I call a reluctant investor, ECCA has all the characteristics I'm looking for but I've been procrastinating for about 2 weeks now in doing my own DD..... As a stated maturity preferred with apparently much better coverage than OXLCO or OXLCN, it's a yield tradeoff I'd be willing to make, however, I can't help but think there's a possibility that the better coverage might very well stem from ECC being a younger company than OXLC that only has this one preferred outstanding because they haven't been around long enough to issue more..... It's just a gut feeling at this stage, with DD still undone, but I just have this suspicion that one could be getting in at too early a stage if buying now and more issuance of preferreds in the future could eventually degrade the credit quality.
    Sep 13, 2015. 09:34 AM | Likes Like |Link to Comment
  • Oxford Lane Capital Sell-Off Is Irrational [View article]
    Is not ARU the same credit as AFC? If so, there is a more apples to apples comparison OXLCO vs ARU as ARU has a maturity of 10/2022. Conclusion's the same, though as ARU's yield is 5.875% and OXLCO is about 7.55%.
    Sep 12, 2015. 09:03 AM | Likes Like |Link to Comment