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John Huss

John Huss
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  • Bank Preferred Rundown - Goldman Sachs [View article]
    According to Doug LeDu, preferreds with coupons of less than 6.5% are much less likely to be called over a market cycle than higher coupon preferreds. As interest rates go up, I would not want to be stuck with Goldman's Series I, since I think it will not be in Goldman's interest to call it and unlikely that it will trade at or above par in a normalized interest rate environment. Since I am a buy and hold investor, the Series K definitely looks better, but I am keeping whatever powder I have dry until rates are on average about 50 basis points (or more) higher than they are today.
    Jun 30, 2015. 04:08 PM | 1 Like Like |Link to Comment
  • Bank Preferred Rundown - Morgan Stanley [View article]
    If you want to know if an issue is a Trust Preferred, check Quantum Online. There are very few Trust Preferred's left. Banks called most of them promptly after Dodd-Frank rules went into effect. There are still some preferreds around which can be called early in the event of an acquisition, but I believe most newly issued preferreds of quality companies have protective provisions in their trust indentures to guard against premature calls.

    Given where interest rates seem to be heading, now is definitely not the time to buy a preferred substantially above its call price, IMHO.
    Jun 30, 2015. 03:57 PM | Likes Like |Link to Comment
  • Digital Realty: 4% And Good For The Environment [View article]
    It would be interesting to compare Digital Realty's bonds to its outstanding PFD Stock issues.
    Jun 22, 2015. 02:07 PM | Likes Like |Link to Comment
  • Resource Capital Needs To Get Its Act Together [View article]
    If the company is that poorly managed how safe is their PFD stock? I am underwater by over 10% on RSO-B, while my other M-REIT and standard REIT PFD holdings have held up quite well.
    May 22, 2015. 04:01 PM | 1 Like Like |Link to Comment
  • Northstar Is Far From An Intelligent REIT Alternative [View article]
    Good article. If as you say the business is sound, isn't it reasonable to own Northstar PFD paying about 8%? Will the spin-off of the European assets have a negative effect on the PFD valuation since there will be fewer money making assets to cover the dividends?
    May 18, 2015. 11:18 AM | 2 Likes Like |Link to Comment
  • White Shoe Shuffle - Morgan Stanley Calls 2 Cap Trusts, Here Are Options [View article]
    There seems to be a good deal of fear in the PFD market over the prospect of rising interest rates. Is now a good time to sit tight and wait for further price drops or is this just a passing squall?
    May 7, 2015. 03:09 AM | Likes Like |Link to Comment
  • Prospect Capital: What Comes Next? [View article]
    PRY has been called as of 5/15. I was referring to the weekly offerings of new debt to retail investors.
    Apr 24, 2015. 09:14 AM | 1 Like Like |Link to Comment
  • Prospect Capital: What Comes Next? [View article]
    I own a little PSEC debt because S&P (not Moody's) treats it as an investment grade company (BBB vs NR by Moody's). How secure do you think the debt is given the questionable nature of the company's management?
    Apr 23, 2015. 01:44 PM | Likes Like |Link to Comment
  • The REIT Dividend Delusion [View article]

    Thanks, Southern Gent! Very helpful
    Apr 21, 2015. 08:35 AM | Likes Like |Link to Comment
  • New York Mortgage Trust - Estimating 7.87% And Not Overly Impressed [View article]
    The title of your article seems to be at odds with the tone of the article itself which I found quite positive.

    I would be very interested in an article on RSO, ABR, and HTS. Does the market price of RSO PFDs accurately reflect a significantly higher risk than that of its peers or is there something of a mis-pricing going on?
    Apr 18, 2015. 11:24 AM | Likes Like |Link to Comment
  • Make Over 6% Income With Utility CEFs [View article]
    I am interested in your thoughts on less seasoned utility CEFs, particularly DPG with its global focus and broad definition of what counts as a utility. It sells at what I consider a substantial discount (currently 11.94%). Granted that utility stocks are likely to suffer once fears of interest rate increases accelerate, do you think the presence of stocks not part of the US stock market could prove helpful to NAV preservation?
    Apr 18, 2015. 11:14 AM | Likes Like |Link to Comment
  • The REIT Dividend Delusion [View article]
    Very interesting comment with regard to PFD holders not being ones to bolt at the first sign of trouble. Have you done any research with respect to tendencies to bolt among CEF investors who focus on leveraged income CEFs including a good number of PFD CEFs? I have the impression--without having researched the matter--that CEFs are held by retail investors who are quite ready to bolt at the first sign of trouble, e.g., with respect to interest rate concerns. Any thoughts on that? Fortunately a CEF seller only affects the price of the CEF in question--premium/disc... not the value of the investments held by the fund.
    Apr 18, 2015. 11:01 AM | Likes Like |Link to Comment
  • Colony Financial: 7.125% Is Okay, But I'll Pass On The New Preferred Stock [View article]
    I find your analysis persuasive. Do you have any thoughts on constructing a diversified portfolio of PFDs. What degree of concentration do you find acceptable? With unrated issues is even a 5% limit on a single issuer too high, or is even 10% acceptable for the right unrated issuer? How much MREIT exposure is too much? Your comments on this issue of portfolio construction would be read with great interest by many of your followers.
    One might want to pick up some CLNYpB if one had reached one's limit in AGNC or NRF PFDs, for example.

    Unrelated question: Do you have an opinion on ANHpC?
    Apr 15, 2015. 03:43 PM | Likes Like |Link to Comment
  • Equity CEFs: The Insanity Of CEF Investors - Part II [View article]
    You raise the problem of accurate data reporting on CEFs. Any opinion on the quality of data reporting by CEF Connect?
    Apr 14, 2015. 05:12 PM | Likes Like |Link to Comment
  • REITs, Rates And Reality - A Further Study [View article]
    Would love to see you write a similar article on rising rates and leveraged fixed income CEFs. You have exceptional knowledge of PFDs and the CEFs that specialize in PFDs and I very much miss not seeing any new articles by you in this area.
    Apr 13, 2015. 11:53 AM | Likes Like |Link to Comment