Preferreds Weekly Review: Recent Issues Often Offer Highest Yields

Like
Comment
Favorite

Preferreds Weekly Review: Recent Issues Often Offer Highest Yields

seekingalpha09-16

We take a look at the action in preferreds and baby bonds through the fourth week of July and highlight some of the key themes we are watching.Preferred stocks and baby bonds saw positive price ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment

No comments yet

Most Discussed

7x24

All

Terms and Conditions·Privacy Policy

Company: TTMF Limited. Tech supported by Xiangshang Yixin.

Email：uservice@ttm.financial

{"i18n":{"language":"en_US"},"data":{"share":"https://ttm.financial/m/news/2467848532?lang=en_US&edition=fundamental","thumbnail":"https://static.seekingalpha.com/cdn/s3/uploads/getty_images/2058537479/image_2058537479.jpg","is_english":true,"pubTime":"2024-09-16 20:49","share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","id":"2467848532","market":"sg","top_or_hot":-1,"title":"Preferreds Weekly Review: Recent Issues Often Offer Highest Yields","media":"seekingalpha","content":"<div>\n<p>We take a look at the action in preferreds and baby bonds through the fourth week of July and highlight some of the key themes we are watching.Preferred stocks and baby bonds saw positive price ...</p>\n\n<a href=\"https://seekingalpha.com/article/4721319-preferreds-weekly-review-recent-issues-often-offer-highest-yields\">Source Link</a>\n\n</div>\n","source":"seekingalpha","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Preferreds Weekly Review: Recent Issues Often Offer Highest Yields</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPreferreds Weekly Review: Recent Issues Often Offer Highest Yields\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-09-16 20:49 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4721319-preferreds-weekly-review-recent-issues-often-offer-highest-yields><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>We take a look at the action in preferreds and baby bonds through the fourth week of July and highlight some of the key themes we are watching.Preferred stocks and baby bonds saw positive price ...</p>\n\n<a href=\"https://seekingalpha.com/article/4721319-preferreds-weekly-review-recent-issues-often-offer-highest-yields\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"VLYPN","symbol_name":"VALLEY NATIONAL BANCORP FIXED RATE RESET PERP PFD SER C","start_time":0,"source_url":"https://seekingalpha.com/article/4721319-preferreds-weekly-review-recent-issues-often-offer-highest-yields","article_id":"2467848532","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/2058537479/image_2058537479.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2467848532","pubTimestamp":1726490984,"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"We take a look at the action in preferreds and baby bonds through the fourth week of July and highlight some of the key themes we are watching.Preferred stocks and baby bonds saw positive price moveme","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"VLYPN":"VALLEY NATIONAL BANCORP FIXED RATE RESET PERP PFD SER C","BK4211":"区域性银行","CCIA":"Carlyle Credit Income Fund","CCIF":"CARLYLE CREDIT INCOME FUND"},"translate_title":"优先股每周回顾：最近发行的股票通常提供最高收益率","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CCIA":1,"CCIF":1,"VLYPN":1,"US10Y.BOND":0.9,"US12M.BOND":0.9,"US2Y.BOND":0.9,"US30Y.BOND":0.9,"US3Y.BOND":0.9,"US5Y.BOND":0.9,"US6M.BOND":0.9,"US7Y.BOND":0.9,"US912797GW17.BOND":0.6,"US912797HE00.BOND":0.6},"content_text":"We take a look at the action in preferreds and baby bonds through the fourth week of July and highlight some of the key themes we are watching.Preferred stocks and baby bonds saw positive price movement, with most sub-sectors finishing in the green on the week with credit spreads remaining tight.New issues often offer stronger yields than existing shares; investors should monitor new securities for better yield opportunities.Carlyle Credit Income Fund's new 7.125% 2029 term preferred highlights mispricing in CCIA, with better yields available in ECC.PD and PRIF.PH.PM Images Welcome to another installment of our Preferreds Market Weekly Review, where we discuss preferred stock and baby bond market activity from both the bottom-up, highlighting individual news and events, as well as top-down, providing an overview of the broader market. We also try to add some historical context as well as relevant themes that look to be driving markets or that investors ought to be mindful of. This update covers the period through the first week of September. Be sure to check out our other weekly updates covering the business development company (\"BDC\") as well as the closed-end fund (\"CEF\") markets for perspectives across the broader income space. Market Action Preferreds were mostly up this week alongside Treasuries. All sub-sectors but two finished in the green. Preferreds have quickly retraced the spread widening we saw in early August and continue to trade at very tight credit spreads. ICE The median yield-to-worst recently headed lower in line with the move in longer-term Treasury yields, now trading at around 6.5%, well off the 8% peak of this cycle. Systematic Income Preferreds Tool The percentage of the market trading at a negative yield-to-call has now risen to above 10% which requires due diligence on the part of investors to look beyond the stripped yield. Systematic Income Preferreds Tool Market Themes This week, we added a few securities to our investor Preferred and Baby Bond Tools, some of which began trading in the last couple of weeks. The Valley National Bank Series C (VLYPN) was added to two of its sister preferreds (VLYPO, VLYPP). VLYPN looks best in the suite in terms of the forward yield profile as shown in the chart below. It is a 5-year CMT (5Y Treasury Yield) reset preferred, with the first call date in 2029. Its yield-to-worst is 7.8%. Systematic Income Preferreds Tool Regions Bank Series F (RF.PF) was added to its two sister preferreds (C and E). F looks best with a 6.5% yield-to-worst in the suite. Systematic Income Preferreds Tool SCE.PN and SCE.PM from utility Southern California Edison were added to the suite, which now has 7 preferreds. The pricing is fairly efficient with the exception of G and L where investors could do better by switching. L is not pictured in the chart due to chart constraints and as it's right on top of G. Systematic Income Preferreds Tool In the baby bond space, 2028 bond ABLLL from insurance asset manager Abacus Life was added to the Fins sector of the Baby Bond Tool. The bond is unrated and trades at an 8.1% yield. The takeaway here is that it pays for investors to keep an eye on new issues as they can often offer stronger yields than existing shares of the same issuer. This is likely because the new stock is often issued at a yield premium to not only protect the bookrunner but also to entice informed investors into buying or rotating into the new issue when it comes out. Market Commentary CLO Equity CEF Carlyle Credit Income Fund (CCIF) is issuing a private convertible 7.125% 2029 term preferred. The coupon is quite a bit lower than the 8.75% on its Series A (CCIA) which will lower its cost of leverage. It would not be surprising to see CCIA redeemed in about a year given it's trading well above par, indicating the fund can refinance with a lower coupon stock. We have highlighted a number of times the surprisingly low sub-6% CCIA yield. This has corrected a bit as CCIA has underperformed the sector and its yield is now around 6.3%. This is still too low relative to other CLO CEF preferreds. The 7.125% coupon on the new convertible preferred shows just how mispriced CCIF is. Not only does the new preferred have a maturity, but it also has the conversion option. Both factors mean it should trade at a lower yield than CCIA. In the sector, we like ECC.PD which has now moved out to an attractive yield of 8.7% as well as PRIF.PH at a 9.4% yield. Even better, bonds from other CLO CEFs like OXLCI with an 8.2% yield offer much stronger risk/reward.  Editor's Note: This article covers one or more microcap stocks. Please be aware of the risks associated with these stocks.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"analysis","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"hasMoreComments":false,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false}}