More New Preferred Issues Hit the Market

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The new issues have been coming fast and furious in the last couple of weeks.  We had previous covered CHS Preferreds, Paragon Shipping Senior Notes and Invesco Mortgage Capital Preferred (you can check articles to the right or those below for any thoughts we had on those issues).

We had not touched on a new issue fromAmTrust Financial Services–a non cumulative preferred.  This issue started trading on the OTC market today (Thursday) under a temporary ticker.  We have no interest in this 7.625% issue as it is perpetual and non cumulative and at this time we are not buying long duration preferreds, except under special circumstances.  Additionally AmTrust continues to receive negative attention from the GeoTeam on Seeking Alpha–the most recent accusing the officers of breaking SEC and IRS.  Todate these have been BS but it just adds more uncertainty to an issue we don’t really care to own.

Details of the issue are here.


Additionally a new issue 7.75% monthly paying preferred from Vanguard Natural Resources LLC comes to the OTC market tomorrow.  Again the issue is perpetual and does not help our very slow move to shorter durations.  Also this issue will generate a K-1 for you at tax time.

Details of this issue are here.

Tim McPartland

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Tim McPartland
Tim McPartland is a private investor with over 45 years of investing experience. His analysis, research and writing is devoted to the hunt for income producing securities of all types, but in particular specializing in preferred stocks, exchange traded debt and Master Limited Partnerships.
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