Hope you have a nice extended weekend hanakookie. I appreciate the thought and knowledge you put into your blurbs. You have some good insight into the 'nuts and bolts' of this space.
True but if solvency becomes an issue, it does not matter whether there is 100 million shares of common or 1 million shares of common. Wasting precious money buying back common when solvency is an issue just seems crazy to me.
Just the perception of some major conflicts seems to drive the spot price up, even if it is mostly psychological. My pipeline energy holdings got a big boost today, up 5-7%. I was actually hoping they would drop more before the year was done, as I had several low ball limit orders in place to double my positions in them heading into 2016.
I believe MDLY traded ex-div today, thus the $0.20 discrepency. Date of record is 27th, but stock goes ex-div 3 days prior.
Seems that floor near $11.50 is decently strong. NRZ has bounced off of it a few times now. I think buying under $12 will end up being the same great opportunity that buying under $6 was (pre-split) when NRZ was just spun-off and scuffled around for a long while before making a very strong move up.
Given that Brazil appears to be in full on implode mode right now, it might be some time yet before S. America gets its act together.
Man, I sure hope today is just another head fake and not the start of the real come back. Got a limit order below $40 that still needs to be filled. C'mon tax loss sellers...I know you're still out there!
If anything, buy back the bonds should the discount get big enough. Unlike common and preferred, the senior debt *has* to be redeemed in full at some point or rolled over (if possible) into a later maturity. If Frangou has the chance to redeem some early at 50 cents on the dollar, it might be worthwhile. Buying back preferred at $7 or common below $1 makes a lot less sense to me.
You left out the greatest disparity of them all. Japanese sovereign debt is trading near 0% for 10yr even as Japan has debt to GDP of around 240% and climbing by the day.
I've been patiently holding onto SJB for the past 4-5 months now, like watching paint dry really. Up a bit on it, and I think the next 4-5 months could get real interesting in the distressed junk debt space.
Correct, who knows how many leveraged funds are being forced sellers due to the consistent weakness in the space lately.
It's kind of amazing to think that the midstream MLPs today are now yielding what the upstream MLPs were yielding 12 months ago. Just total destruction of unit prices across the board.
Ironically NRZ may see a good amount of tax loss selling. I'm still scratching my head at why the price action has been so horrid over the past few months.
For whatever reason, there is just no buying interest. Both STNG and NNA are putting up good to great earning numbers. Their reward? Nada. Disappointing to say the least.
I am sure there is plenty of tax loss selling going on. The last day to sell and get the tax loss for 2015 is December 31st, but usually people start selling now before everybody else does. Most analysis shows tax loss selling volume subsides in mid-December. I have a few low ball limit orders in place to snag more TRGP, PAGP, and ENLC, but if they do not trigger by then, I likely will just buy at the market price. There could be more pain ahead in 2016, one never knows. But I think overall this sector has been beat up pretty good and should be a decent risk/reward moving forward for those buying now.
The one negative catalyst that could really bite for 2016 is if the Fed really starts raising rates again and again as the year progresses. 25 basis points is not much, but string 3 consecutive rate increases in a row, and that will not help matters much for these companies that have relatively high levels of debt to EBITDA.
Also, specifically for TRGP there remains uncertainty about the NGLS roll up plan which is likely causing some short selling interest in both names.