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srisner

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  • A Preferred Bond Replacement Strategy For Intelligent REIT Investors [View article]
    Fundflow:

    Just to clarify, you wrote:

    3) REIT pfds. usually have a five year call date and a fixed maturity date (some are perpetual)

    In fact, traditional preferred stocks do not have a maturity date - they are perpetual securities. Trust preferreds and Exchange Traded Debt (ETDs) do have maturity dates.
    Apr 5 10:33 PM | Likes Like |Link to Comment
  • A Preferred Bond Replacement Strategy For Intelligent REIT Investors [View article]
    I noticed that, even though it has recovered most of it, NRF.B declined approximately 11% from late May 2013 to the lows in late Dec 2013. Not sure many Income investors could stomach that drop in Principal.
    Apr 5 10:28 PM | Likes Like |Link to Comment
  • A Preferred Bond Replacement Strategy For Intelligent REIT Investors [View article]
    Personally, I would not touch ANY preferred that is Non Cumulative. In fact, I use most of the criteria set by Doug Le Du who publishes on Seeking Alpha as well as running a subscription based service.

    http://bit.ly/15Pq0Vh

    One criteria that I will "fudge" on is the rating. I will go as low as Ba1 to Ba2 and also add some Non-Rated issues knowing that I must do more Due Diligence on them before investing and of course have a tighter leash on them as well.

    One piece of advice for those thinking of purchasing Traditional Preferreds now, I would say do not buy them unless you are willing to be what Le Du refers to as a "Perpetual Owner". Meaning they may never be Called/Redeemed. A way around Perpetual Ownership is to buy an Exchange Traded Debt (ETD) that has a set maturity date like a bond.
    Apr 5 10:24 PM | Likes Like |Link to Comment
  • A Preferred Bond Replacement Strategy For Intelligent REIT Investors [View article]
    In fact, O has 2 preferreds currently trading -- O.E and O.F. Both last traded over Par. (over $25).

    Note that the lower coupon rate issue O.F at 6.625% is off some 8.5% from the highs of last May (pre Taper Tantrum) whereas O.E at 6.75% is only off 3.4% during that same time.
    Apr 5 10:17 PM | Likes Like |Link to Comment
  • How Does An Intelligent Investor Navigate Mortgage REIT Risk? [View article]
    MissCBD:

    A good way to add a chart or any screenshot to a post is to use the Jing program from TechSmith the makers of SnagIt. It is Free and I have been using it for years without any problems.

    http://bit.ly/1iLXOpz
    Mar 21 07:25 PM | Likes Like |Link to Comment
  • How Does An Intelligent Investor Navigate Mortgage REIT Risk? [View article]
    WmHilger1:

    Thank you for your comments and insights. Yes, if a company goes bust, I will be S.O.L., but that is a risk that I am willing to take.

    Even though I have not personally experienced your pain, I have a number of investor friends who have. For that very reason, I diversify across several companies and industries.

    Like others, I never purchase Above the Call Price, so that if I am called, I will experience a capital Gain not a Loss. Of course, there is the possibility that if I buy an issue with a very low coupon rate and rates rise, the issue will never be Called away and I will be a perpetual owner.
    Mar 21 07:22 PM | Likes Like |Link to Comment
  • Digital Realty: Despite Turmoil, New Preferred Is Interesting [View article]
    Thanks for the thought provoking article.

    I only have one minor comment regarding your comparison of the DLR G series preferred to the DLR common stock. I contend that, in the absence of any dramatic shift in the financial stability of the underwriting company, the vast majority of Preferreds more closely track the change in Interest Rates than to the change in the Price of the Common stock.

    Here is a chart that I believes "proves" it. I have superimposed the price of the DLR G preferred (the GREEN line) to the IEF 10 year Treasury Bond Fund (the light BLUE line). Notice that except for the month of July 2013 they are highly correlated and that eventually, they came in line.

    http://bit.ly/1gQUA3m
    Mar 21 05:51 PM | Likes Like |Link to Comment
  • How Does An Intelligent Investor Navigate Mortgage REIT Risk? [View article]
    Brad:

    Thank you for yet another thought provoking article.

    You commented above:

    Thomas: As you know, I'm a more conservative investor and one of the things that cause me concern in the Mortgage REIT sector are dividend cuts. For many investors, a dividend cut can be painful, especially when you are depending on that income. What are your thoughts about the sustainability of Mortgage REIT dividends?

    ++++++++++

    Like you, I like to have a stable stream of income which is why I chose to purchase a select few Preferred shares of some mREITs. I like the higher coupon and believe that they are not likely to go out of business. My mREIT holdings include: ARR.A, ARR.B, IVR.A and NLY.C all paying between 7.625% and 8.25%.
    Mar 20 11:17 AM | 1 Like Like |Link to Comment
  • CYS Maintained Book Value. Provided A 15%+ Dividend For Q3; And Its Outlook Is Positive. [View article]
    David:

    Thanks again for another nice article. With regards to the 10 year treasury yield, as improbable as it sounds, the TNX weekly chart appears to be forming a Head & Shoulders top here.

    http://bit.ly/1g1L3XN

    Thanks again,
    Oct 25 11:11 PM | 2 Likes Like |Link to Comment
  • A BDC Investment Philosophy And 4 Portfolios [View article]
    Though they are not "Baby Bonds", I have a couple of Exchange Traded Debt Securities (ETDS's) from BDCs. Specifically from HTGC, and MVC with coupons of 7% and 7.25%. The beauty of those is that they are fixed amounts (cannot be reduced) and are higher in the pecking order than the common dividends.

    Folks may want to investigate those. A few great resources I use are: http://bit.ly/qWc98b, http://bit.ly/15Pq0Vh and http://bit.ly/I81bHK
    Sep 10 04:18 PM | Likes Like |Link to Comment
  • Annaly Capital: Is It Time To Abandon Ship? [View article]
    Thank you for your article. I guess it would be safe to say that you and I believe that the long term profitability of the mREITs is going to depend on the Interest Rate Spreads. If so, which Durations do you use to measure the spread?

    I too follow the 10 year interest rates (via TNX), but are the spreads that the mREITs use to make their profits based on another set of rates?
    Jul 16 03:20 PM | Likes Like |Link to Comment
  • 5 New Preferred Stocks Clear 7%, First Time Since July 2012 [View article]
    Zgb:

    One stock that I picked up on a recent dip was NNN-D at $24.80. It is Investment Grade, is Cumulative, has a 6.625% coupon and, at the time I bought it, was under Par.
    Jul 2 04:53 PM | Likes Like |Link to Comment
  • 5 New Preferred Stocks Clear 7%, First Time Since July 2012 [View article]
    Doug:

    Thank you for the article and your subscription service. I am a subscriber of your site as well as a contributor to the QuantumOnline site.

    Thanks to you both.
    Jul 2 04:43 PM | Likes Like |Link to Comment
  • 5 New Preferred Stocks Clear 7%, First Time Since July 2012 [View article]
    Zgb:

    You are correct with regards to most banks who want to count their Preferreds as Tier 1 capital. I do not recall any bank preferreds being issued this year that are Cumulative. This is the choice that they have made based on the new capital requirements and the markets are free to price them as they deem appropriate.

    I agree with you that I would not invest in a non-Cumulative issue, but there are some that feel the risk is acceptable. That is what makes markets.

    Investing is not math, there is a fair amount of judgement required. I for one have some preferreds in my portfolio below "Investment Grade". In fact, one of my best performers has been DDT which is rated B2 by Moody's. I have done my due diligence and feel the risk is acceptable, but believe that others may not.
    Jul 2 04:41 PM | Likes Like |Link to Comment
  • 5 New Preferred Stocks Clear 7%, First Time Since July 2012 [View article]
    Zgb:

    I am not sure why you feel you have to be so aggressive in your posts, but I will respond to you anyway.

    As of the close on 2 July 2013, there are 11 of what Mr Le Du terms as "Bargain" issues. A few weeks ago there were over twice as many (before the most recent bounce). One of those is CTY which has a coupon of 6.125% and a current yield of 6.27%. Please note that on 1 Jan 2013, Mr Le Du lowered the minimum coupon rate to 6.0% from 6.5% to reflect the then current state of the market.

    I hope that this helps. If you have any other questions, I am sure Mr Le Du would be happy to answer them provided they are delivered in a civil manner.

    Best regards,
    Jul 2 04:32 PM | Likes Like |Link to Comment
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