Do you get your cable service through Comcast? How would you like to get some of your cable fee back in the form of a yield of 5%? I'm not talking about buying the common stock of Comcast (CMCSA), which only pays a 1.7% yield.
What I'm talking about are the Comcast 5% Notes (CCV), also known as minibonds, that are publicly traded on the New York Stock Exchange with a
current yield of 5.0%. In case you missed the previous articles about minibonds, such as Goldman Sachs (GS) minibonds, or Banc of California minibonds, you should check them out.
The Comcast 5% Notes,
have a maturity date of December 15, 2061, but is redeemable by Comcast on 12/15/17. The company pays interest of $0.3125 each quarter.
These minibonds are currently trading at 25.00 per share.
Keep in mind the risks. The distributions are interest and not dividends, so no dividend tax
benefits. If interest rates go up, these will go down in value. These are not like regular bonds, so there is no accrued interest between distribution dates. These have much lower liquidity than the common stock.
So what about the company that is backing these
securities? The company reported strong earnings growth of 30.2% on a 13.7% rise in revenues for the latest quarter. The common stock trades at 19 times trailing earnings and 16 times forward earnings.
As long as you can accept
the risks, especially the interest rate risk, you might want to consider these bank mini bonds, in order to
help bring up your overall investment income. If you are interested in
investments like this, your should check out the free stock lists at WallStreetNewsNetwork.com.
Disclosure: Author didn't own any of the above at the time the article was written.
By Stockerblog.com
Showing posts sorted by relevance for query minibonds. Sort by date Show all posts
Showing posts sorted by relevance for query minibonds. Sort by date Show all posts
Friday, May 30, 2014
Tuesday, September 07, 2010
Minibonds: PINES, QUIBS, PD's, and More
Income investors, are always looking for new and different alternatives to the staid municipal bonds and utility stocks. One interesting alternative is the Minibond. This is a bond that is traded, just like a stock, on the New York Stock Exchange or American Stock Exchange for around $25 per share. They are almost like preferred stocks except that they pay interest instead of dividends and they usually have a specific maturity date. Sometimes they are referred to as PINES (Public Income Notes) or QUIBS (Quarterly Interest Bonds) or QUICS (Quarterly Income Capital Securities) or QUIDS (Quarterly Income Debt Securities). There are even a few that are issued as Perpetual Debt or PDs, which means that there is no maturity date.
The advantages of Minibonds to the issuers are that the interest is deductible to the corporation (unlike dividends on preferred and common stocks, which are not deductible).
The advantages to the investor are first, that the bonds are more secure than preferred stocks (in other words, if the corporation goes out of business, the bonds are generally paid off first before the preferred or common stock). Second, the Minibonds (with the exception of the perpetual debt bonds) have some limited protection against inflation versus preferred stocks in that if interest rates go up after purchasing them, their value will drop; however the par value (usually $25) will be paid back at maturity on the Minibonds. Whereas, preferreds have no maturity. The third benefit is the small denomination, especially when looking at a $2,000 IRA investment. A fourth benefit is that since they are traded like stocks, there is more liquidity than buying or selling a $5,000 bond. However, these are still very illiquid investments. Most have a very low daily volume.
An example is the AT&T Inc. 6.375% Senior Note (ATT), which currently yields 5.9% and pays quarterly. Another is the Viacom, Inc. 6.85% Senior Note (VNV), yielding 6.5%, which also distributes payments quarterly.
WallStreetNewsNetwork.com is working on a list of all the Minibonds, which can be downloaded and sorted. It should be posted in the next few days.
Author does not own any of the above.
By Stockerblog.com
The advantages of Minibonds to the issuers are that the interest is deductible to the corporation (unlike dividends on preferred and common stocks, which are not deductible).
The advantages to the investor are first, that the bonds are more secure than preferred stocks (in other words, if the corporation goes out of business, the bonds are generally paid off first before the preferred or common stock). Second, the Minibonds (with the exception of the perpetual debt bonds) have some limited protection against inflation versus preferred stocks in that if interest rates go up after purchasing them, their value will drop; however the par value (usually $25) will be paid back at maturity on the Minibonds. Whereas, preferreds have no maturity. The third benefit is the small denomination, especially when looking at a $2,000 IRA investment. A fourth benefit is that since they are traded like stocks, there is more liquidity than buying or selling a $5,000 bond. However, these are still very illiquid investments. Most have a very low daily volume.
An example is the AT&T Inc. 6.375% Senior Note (ATT), which currently yields 5.9% and pays quarterly. Another is the Viacom, Inc. 6.85% Senior Note (VNV), yielding 6.5%, which also distributes payments quarterly.
WallStreetNewsNetwork.com is working on a list of all the Minibonds, which can be downloaded and sorted. It should be posted in the next few days.
Author does not own any of the above.
By Stockerblog.com
Tuesday, December 26, 2006
PINES and QUIBS and PD's Oh My! Minibonds Anyone?
Have you ever considered Minibonds(TM) for an income portfolio or your retirement plan? These are bonds that are traded just like stocks on the New York Stock Exchange or American Stock Exchange for around $25 per share. They are almost like preferred stocks except that they pay interest instead of dividends and they usually have a specific maturity date. Sometimes they are referred to as PINES (Public Income Notes) or QUIBS (Quarterly Interest Bonds) or QUICS (Quarterly Income Capital Securities) or QUIDS (Quarterly Income Debt Securities). There are even a few that are issued as Perpetual Debt, which means that there is no maturity date.
The advantages of Minibonds to the issuers are that the interest is deductible to the corporation (unlike dividends which are not deductible).
The advantages to the investor are first, that the bonds are 'safer' than preferred stocks (in other words, if the corporation goes out of business, the bonds are generally paid off first before the preferred or common stock). Second, the Minibonds (with the exception of the perpetual debt bonds) have some limited protection against inflation versus preferred stocks in that if interest rates go up after purchasing them, their value will drop, however the par value (usually $25) will be paid back at maturity. Whereas, preferreds have no maturity. The third benefit is the small denomination, especially when looking at a $2,000 IRA investment. A fourth benefit is that since they are traded like stocks, there is more liquidity than buying or selling a $5,000 bond. However, these are still very illiquid investments. Most have a very low daily volume.
Here is a list sorted in order of current yield:
General Motors 7.5 GMS 9.8%
General Motors 7.375 HGM 9.7%
Genl Mtrs Corp Sr Notes BGM 9.6%
General Mtrs 7.25 Notes RGM 9.5%
General Motors 7.25 XGM 9.4%
Gen Motors 7.25 QUIB GMW 9.4%
Great Atl. & Pac 9.375 GAJ 9.2%
Ford Motor 7.6% Notes FCJ 8.3%
A M R Corp 7.875 Pines AAR 8.2%
Converium Fin 8.25 CHF 8.1%
PMA Cap 8.5 Sr Notes PMK 8.1%
Provident Fin Sr Notes PFV 8.0%
Aquila 7.875% QUIBS ILD 7.8%
Realty Income Corp 08 OUI 7.8%
Delphi Fin 8.0 Sr Notes DFY 7.8%
Northern Sts Pwr 8.0 XCH 7.8%
Hilton Hotels 8% QUIBS HLN 7.8%
Stilwell 7.875 Pines SVQ 7.8%
GMAC Llc 7.35 Sr Notes GJM 7.6%
GMAC Llc 7.375% Note GOM 7.6%
Telephone & Data 7.6 TDA 7.5%
GMAC Llc Pines GMA 7.5%
GMAC Llc 7.25% Notes GKM 7.5%
Entergy Louis. Hldgs 7.60% EHL 7.4%
AAG Hldg 7.5 Sr Deb GFW 7.4%
Phoenix Cos 7.45QUIB PFX 7.4%
Natl Rural Util 7.40% NRS 7.3%
Forest Cty Ent. Sr Notes FCY 7.2%
Cons Ed 7.25% Pines EPB 7.1%
AAG Hldg 7.25% Deb GFZ 7.1%
ING Groep Perp Debt INZ 7.1%
Entergy Mississ. 7.25 EMO 7.1%
AT&T Inc 7% Pines SBT 7.0%
ING Groep Perp Debt IND 6.9%
SLM Corp Lkd Notes OSM 6.9%
American Finl 7.125 AFE 6.9%
Finl Sec Assur 6.875 FSB 6.9%
General Mtrs Deb C GPM 6.8%
Telephone & Data Sys TDI 6.8%
Hsbc Fin Corp 6.875 HTB 6.7%
Natl Rural Util 6.75 NRN 6.6%
ENTERGY Arkansas 6.70% EHA 6.6%
Duquesne Light Pines DQC 6.6%
Genl Elec Cap Pines GEA 6.6%
Bank Of Am Corp 6.5% IKJ 6.4%
General Mtr Cv Dbs B GBM 6.3%
Finl Sec Assur Notes FSE 6.2%
Natl Rural Ut Sub Notes NRC 6.2%
Natl Rural Ut Sub Notes NRU 6.2%
Ford Motor Credit 7.375% FCZ 6.2%
SLM Corp Sr Notes JSM 6.1%
AMBAC Fin 5.875 Deb AKT 6.1%
Gulf Power 5.875 Snr GUQ 6.1%
AMBAC Finl 5.95 Debs AKF 6.1%
HSBC Fin Corp 6.0 Notes HTN 6.1%
ING Groep Perp Debt ISP 6.1%
General Elec Cap 6.1 GEC 6.0%
Services and products referred to herein are trademarks, registered trademarks, servicemarks, or registered servicemarks of their respective trademark or servicemark owners. Author owns one of the General Motors notes.
The advantages of Minibonds to the issuers are that the interest is deductible to the corporation (unlike dividends which are not deductible).
The advantages to the investor are first, that the bonds are 'safer' than preferred stocks (in other words, if the corporation goes out of business, the bonds are generally paid off first before the preferred or common stock). Second, the Minibonds (with the exception of the perpetual debt bonds) have some limited protection against inflation versus preferred stocks in that if interest rates go up after purchasing them, their value will drop, however the par value (usually $25) will be paid back at maturity. Whereas, preferreds have no maturity. The third benefit is the small denomination, especially when looking at a $2,000 IRA investment. A fourth benefit is that since they are traded like stocks, there is more liquidity than buying or selling a $5,000 bond. However, these are still very illiquid investments. Most have a very low daily volume.
Here is a list sorted in order of current yield:
General Motors 7.5 GMS 9.8%
General Motors 7.375 HGM 9.7%
Genl Mtrs Corp Sr Notes BGM 9.6%
General Mtrs 7.25 Notes RGM 9.5%
General Motors 7.25 XGM 9.4%
Gen Motors 7.25 QUIB GMW 9.4%
Great Atl. & Pac 9.375 GAJ 9.2%
Ford Motor 7.6% Notes FCJ 8.3%
A M R Corp 7.875 Pines AAR 8.2%
Converium Fin 8.25 CHF 8.1%
PMA Cap 8.5 Sr Notes PMK 8.1%
Provident Fin Sr Notes PFV 8.0%
Aquila 7.875% QUIBS ILD 7.8%
Realty Income Corp 08 OUI 7.8%
Delphi Fin 8.0 Sr Notes DFY 7.8%
Northern Sts Pwr 8.0 XCH 7.8%
Hilton Hotels 8% QUIBS HLN 7.8%
Stilwell 7.875 Pines SVQ 7.8%
GMAC Llc 7.35 Sr Notes GJM 7.6%
GMAC Llc 7.375% Note GOM 7.6%
Telephone & Data 7.6 TDA 7.5%
GMAC Llc Pines GMA 7.5%
GMAC Llc 7.25% Notes GKM 7.5%
Entergy Louis. Hldgs 7.60% EHL 7.4%
AAG Hldg 7.5 Sr Deb GFW 7.4%
Phoenix Cos 7.45QUIB PFX 7.4%
Natl Rural Util 7.40% NRS 7.3%
Forest Cty Ent. Sr Notes FCY 7.2%
Cons Ed 7.25% Pines EPB 7.1%
AAG Hldg 7.25% Deb GFZ 7.1%
ING Groep Perp Debt INZ 7.1%
Entergy Mississ. 7.25 EMO 7.1%
AT&T Inc 7% Pines SBT 7.0%
ING Groep Perp Debt IND 6.9%
SLM Corp Lkd Notes OSM 6.9%
American Finl 7.125 AFE 6.9%
Finl Sec Assur 6.875 FSB 6.9%
General Mtrs Deb C GPM 6.8%
Telephone & Data Sys TDI 6.8%
Hsbc Fin Corp 6.875 HTB 6.7%
Natl Rural Util 6.75 NRN 6.6%
ENTERGY Arkansas 6.70% EHA 6.6%
Duquesne Light Pines DQC 6.6%
Genl Elec Cap Pines GEA 6.6%
Bank Of Am Corp 6.5% IKJ 6.4%
General Mtr Cv Dbs B GBM 6.3%
Finl Sec Assur Notes FSE 6.2%
Natl Rural Ut Sub Notes NRC 6.2%
Natl Rural Ut Sub Notes NRU 6.2%
Ford Motor Credit 7.375% FCZ 6.2%
SLM Corp Sr Notes JSM 6.1%
AMBAC Fin 5.875 Deb AKT 6.1%
Gulf Power 5.875 Snr GUQ 6.1%
AMBAC Finl 5.95 Debs AKF 6.1%
HSBC Fin Corp 6.0 Notes HTN 6.1%
ING Groep Perp Debt ISP 6.1%
General Elec Cap 6.1 GEC 6.0%
Services and products referred to herein are trademarks, registered trademarks, servicemarks, or registered servicemarks of their respective trademark or servicemark owners. Author owns one of the General Motors notes.
Wednesday, May 14, 2014
Banc of California Will Pay You 7.3% On Your Savings - What will Your Bank Pay?
Have you checked with your bank recently abut the interest rates on their savings accounts or certificates of deposit? I did. On a big sign, it said 'Get 1.0% on a CD' but in small letters it said 'Rate payable on a 10 year CD; penalty for early withdrawal.' Of course, on savings accounts and money market accounts, the rate can be less than a tenth of a percent.
So if you want a high yield, where do you turn? How about a bank? The Banc of California (BANC) has minibonds that are publicly traded with a current yield of 7.29%. In case you missed the previous article about Goldman Sachs (GS) minibonds, you should check it out.
The Banc of California 7.50% Senior Notes (BANCL), which trade on NASDAQ, have a maturity date of April 15, 2020, and pay interest quarterly. These minibonds recently closed at 25.70 per share. You could almost think of it as a six year CD.
However, there are several risks:
So what are the advantages?
What about the underlying bank behind these securities? The bank recently reported an 88.1% boost in revenues; however, earnings dropped 18.5%. At least Banc of California is now flush with cash, as they just raised $50 million from the sale of common stock, and another $50 million from the sale of tangible equity units. Much of the proceeds will be used to purchase 20 California branches of Popular Community Bank. The bank has been in business since 1941 and has over 70 banking locations.
As long as you can accept the risks, you might want to consider these bank mini bonds, in order to help bring up your overall investment income. If you are interested in investments like this, your should check out the free stock lists at WallStreetNewsNetwork.com.
Disclosure: Author didn't own any of the above at the time the article was written.
By Stockerblog.com
So if you want a high yield, where do you turn? How about a bank? The Banc of California (BANC) has minibonds that are publicly traded with a current yield of 7.29%. In case you missed the previous article about Goldman Sachs (GS) minibonds, you should check it out.
The Banc of California 7.50% Senior Notes (BANCL), which trade on NASDAQ, have a maturity date of April 15, 2020, and pay interest quarterly. These minibonds recently closed at 25.70 per share. You could almost think of it as a six year CD.
However, there are several risks:
- These exchange traded notes are not protected by FDIC. They are solely based on the ability of the bank to pay the principal on interest in them.
- The distributions are considered interest and not dividends, which of course prevents the investor from taking advantage of individual or corporate dividend tax benefits.
- If interest rates go up, these will go down in value.
- There is no accrued interest between distribution dates.
- Lack of liquidity. Not many shares trade on a daily basis.
So what are the advantages?
- If the bank goes out of business, these notes have priority over the common stock and any preferred stock of the company.
- Since there is a maturity date, there is some interest rate risk protection since at maturity, they would be paid of at par value of $25.
- These notes have small denominations, so you can invest unusual amounts (e.g. $16,375), as opposed to multiples of $5,000.
- The payout is fixed and not subject to fluctuation, unlike the payouts on the common stock.
What about the underlying bank behind these securities? The bank recently reported an 88.1% boost in revenues; however, earnings dropped 18.5%. At least Banc of California is now flush with cash, as they just raised $50 million from the sale of common stock, and another $50 million from the sale of tangible equity units. Much of the proceeds will be used to purchase 20 California branches of Popular Community Bank. The bank has been in business since 1941 and has over 70 banking locations.
As long as you can accept the risks, you might want to consider these bank mini bonds, in order to help bring up your overall investment income. If you are interested in investments like this, your should check out the free stock lists at WallStreetNewsNetwork.com.
Disclosure: Author didn't own any of the above at the time the article was written.
By Stockerblog.com
Saturday, January 02, 2010
10 Preferred Stocks Yielding Over 10%
Preferred stocks have several advantages over common stocks. If the company goes out of business, the preferred shareholders get paid off before the common shareholders. Preferreds pay a steady income. They are usually less volatile than the common stock. However, they don't participate in the growth of the company in the way the common stock does, unless it is a convertible preferred.
Preferreds can be a safer way to speculate on the recovery of a company. If the preferred stock has been knocked down because of the negative earnings of the company, as long as the dividends are still paid regularly and the company eventually recovers, the return can be fairly substantial. Plus, if the business does go belly up, you may still recover your investment, whereas the common shareholders may get little or nothing.
WallStreetNewsNetwork.com turned up a list of ten preferred stocks (and minibonds), all yielding over 10%, and all of which have kept their dividends up to date, as of the latest quarter. Most made payments in November and December of 2009. This does not guarantee that they will continue to make a payment three months from now, but if the economy and the company's business continues in an upward recovery mode, then you may receive not only your dividend but appreciation in the preferred stock price. Minibonds, which are bonds issued in very small denominations such as $25, were also included in this list due to their similarity with preferreds.
One example is the American International Group Preferred F shares ( AVF), which have a healthy yield of 12.4%. This preferred has been paying 48.1 cents per share every quarter. Assuming the US government doesn't let them go out of business, the dividend should be OK, but of course, that's a big assumption.
Supertel Hospitality Inc Preferred P (SPPRP) is another high yielder. This preferred of the Supertel real estate investment trust, pays 6.7 cents every month, generating a yield of 10.5%. The company operates limited service hotels such as Super 8, Comfort Inn/Comfort Suites, Hampton Inn, Holiday Inn Express, Best Western Suites, Days Inn, and Ramada.
To see other high yield preferreds yielding above 10%, some as much as 28.3% and still paying, check out the free database at wsnn.com.
Author does not own any of the above.
By Stockerblog.com
Preferreds can be a safer way to speculate on the recovery of a company. If the preferred stock has been knocked down because of the negative earnings of the company, as long as the dividends are still paid regularly and the company eventually recovers, the return can be fairly substantial. Plus, if the business does go belly up, you may still recover your investment, whereas the common shareholders may get little or nothing.
WallStreetNewsNetwork.com turned up a list of ten preferred stocks (and minibonds), all yielding over 10%, and all of which have kept their dividends up to date, as of the latest quarter. Most made payments in November and December of 2009. This does not guarantee that they will continue to make a payment three months from now, but if the economy and the company's business continues in an upward recovery mode, then you may receive not only your dividend but appreciation in the preferred stock price. Minibonds, which are bonds issued in very small denominations such as $25, were also included in this list due to their similarity with preferreds.
One example is the American International Group Preferred F shares ( AVF), which have a healthy yield of 12.4%. This preferred has been paying 48.1 cents per share every quarter. Assuming the US government doesn't let them go out of business, the dividend should be OK, but of course, that's a big assumption.
Supertel Hospitality Inc Preferred P (SPPRP) is another high yielder. This preferred of the Supertel real estate investment trust, pays 6.7 cents every month, generating a yield of 10.5%. The company operates limited service hotels such as Super 8, Comfort Inn/Comfort Suites, Hampton Inn, Holiday Inn Express, Best Western Suites, Days Inn, and Ramada.
To see other high yield preferreds yielding above 10%, some as much as 28.3% and still paying, check out the free database at wsnn.com.
Author does not own any of the above.
By Stockerblog.com
Tuesday, December 09, 2008
Playing the Auto Bailout: Yields as High as 48%
Investors are looking for ways to play the automobile company bailouts, without having to speculate on the General Motors (GM) or Ford (F) stocks. A safer way of speculating on the autos is by buying their convertible preferreds, notes, convertible debentures, and minibonds, all of which should be paid off before the common shareholders are paid off, in the event of bankruptcy.
General Motors, 4.5 convertible debentures, 2032, (GXM) 25%
General Motors, 5.25, 2032, convertible debentures B (GBM) 34%
General Motors, 6.25, 2033, convertible debentures C (GPM) 36%
General Motors 7.5, 2044, (GMS), 43%
General Motors 7.375 (HGM) 44%
General Motors Senior Notes (BGM) 48%
General Motors 7.25 Notes (RGM) 48%
General Motors 7.25 (XGM) 45%
General Motors 7.25 QUIB (GMW) 45%
GMAC, 7.25 notes, 2033, (GKM) 42%
Ford Motor Capital Trust II 6.50% Cumulative Convertible Trust Preferred Securities due January 15, 2032 (F-PS) 35%
CorTS Trust II Ford Notes 8.00% Corporate Backed Trust Security Certificates (KVU) 36%
Certificate of Trust Ford Debentures Corporate Backed Trust Securities 7.40% (KSK) 34%
Ford Motor Company 7.5% Notes (F-PA) 30%
Lehman 8% Corporate Backed Trust Certificate Ford Motor Company Note-Backed Series 2003-6, Class A-1 (XVF) 33%
Ford Motor Credit Co. LLC 7.6% notes due March 1, 2032 (FCJ) 23%
Ford Credit Notes is the Ford Motor Credit 7.375% Notes due October 15, 2031 (FCZ) 22%
Above symbols are based on Yahoo's format for stock ticker symbols. Research the details on these securities before investing.
If you like high yields, you should check out the list of monthly dividend stocks at WallStreetNewsNetwork.com.
Author does not own any of the above
By Stockerblog.com
Tuesday, April 29, 2014
How to Get a 6% Yield from Goldman Sachs (without Options or Margin)
Many income investors think that Goldman Sachs (GS) is a good investment. However, the yield on the stock is only 1.4%. Investors looking for a higher yield might want to consider the Goldman Sachs Notes, often called Minibonds, Microbonds, exchange traded bonds, or exchange traded notes. These are low priced bonds and notes, usually trading around $25, that trade on the major exchanges.
These are very similar to preferred stocks, except that the payouts are considered interest and not dividends, which of course precludes the ability to take advantage of individual or corporate dividend tax benefits.
However, these securities do have some benefits over common stock. First, in the event of company liquidation, they have priority over the common and any preferred stock of the company. Second, they do have a maturity date, so at some point they would be paid of at par value. Third, they have small denominations. Fourth, the payout is fixed and not subject to fluctuation, unlike the dividends on common stocks.
These mini bonds do have some risks. First, the interest rate risk. If rates go up, these will drop in value. Also, unlike regular bonds, sellers who sell between distribution dates will not receive accrued interest. Since they trade flat, the accrued interest should be reflected in the sale price, but may not necessarily be.
So lets look at the Goldman Sachs mini bonds. First, there is the Goldman Sachs Group 6.125% Note due 11/1/2060 (GSF). The note closed at 25.64 today, giving it a yield of 5.97%. The first call date is November 1, 2015. The note has average daily volume of 105,000 which is pretty decent liquidity for one of these notes.
The other one is the Goldman Sachs Group 6.5% Note due 11/1/2061 (GSJ). This traded at 26.47 at the end of the day, which makes the distribution rate of 6.14%, with a first call of November 1, 2016. This note has much lower liquidity with an average daily volume of 46,000.
So if you are wiling to take the interest rate risk and you want to receive a high income from one of the largest investment banks in the world, you may want to consider these Goldman Sachs mini bonds. If you are interested in investments like this, your should check out the free stock lists at WallStreetNewsNetwork.com.
Disclosure: Author didn't own any of the above at the time the article was written.
By Stockerblog.com
These are very similar to preferred stocks, except that the payouts are considered interest and not dividends, which of course precludes the ability to take advantage of individual or corporate dividend tax benefits.
However, these securities do have some benefits over common stock. First, in the event of company liquidation, they have priority over the common and any preferred stock of the company. Second, they do have a maturity date, so at some point they would be paid of at par value. Third, they have small denominations. Fourth, the payout is fixed and not subject to fluctuation, unlike the dividends on common stocks.
These mini bonds do have some risks. First, the interest rate risk. If rates go up, these will drop in value. Also, unlike regular bonds, sellers who sell between distribution dates will not receive accrued interest. Since they trade flat, the accrued interest should be reflected in the sale price, but may not necessarily be.
So lets look at the Goldman Sachs mini bonds. First, there is the Goldman Sachs Group 6.125% Note due 11/1/2060 (GSF). The note closed at 25.64 today, giving it a yield of 5.97%. The first call date is November 1, 2015. The note has average daily volume of 105,000 which is pretty decent liquidity for one of these notes.
The other one is the Goldman Sachs Group 6.5% Note due 11/1/2061 (GSJ). This traded at 26.47 at the end of the day, which makes the distribution rate of 6.14%, with a first call of November 1, 2016. This note has much lower liquidity with an average daily volume of 46,000.
So if you are wiling to take the interest rate risk and you want to receive a high income from one of the largest investment banks in the world, you may want to consider these Goldman Sachs mini bonds. If you are interested in investments like this, your should check out the free stock lists at WallStreetNewsNetwork.com.
Disclosure: Author didn't own any of the above at the time the article was written.
By Stockerblog.com
Wednesday, November 22, 2006
Mini Corporate Bonds (PINES, QUIBS, Perpetual Debt, etc.)
Are you looking for a list of Mini Bonds TM ? These are bonds that are traded on the New York Stock Exchange or American Stock Exchange for around $25 per share. They are almost like preferred stocks except that they pay interest instead of dividends and they usually have a specific maturity date. Sometimes they are referred to as PINES (Public Income Notes) or QUIBS (Quarterly Interest Bonds) or QUICS (Quarterly Income Capital Securities) or QUIDS (Quarterly Income Debt Securities). There are even a few that are issued as Perpetual Debt, which means that there is no maturity date.
The advantages of Mini Bonds to the issuers are that the interest is deductible to the corporation (unlike dividends which are not deductible).
The advantages to the investor are first, that the bonds are 'safer' than preferred stocks (in other words, if the corporation goes out of business, the bonds are generally paid off first before the preferred or common stock). Second, the Mini Bonds (with the exception of the perpetual debt bonds) have some limited protection against inflation versus preferred stocks in that if interest rates go up after purchasing them, their value will drop, however the par value (usually $25) will be paid back at maturity. Preferreds have no maturity. The third benefit is the small denomination, especially when looking at a $2,000 IRA investment. A fourth benefit is that since they are traded like stocks, there is more liquidity than buying or selling a $5,000 bond.
Examples of companies that issue these MiniBonds are:
AT&T
Con Ed
Duquesne Light
General Electric Capital
General Motors
Georgia Power
GMAC
Hilton Hotels
ING
Phoenix Companies
Stilwell
The Yahoo link below will bring you to a long list of these Mini Bonds:
yahoo.com
As always, no recommendation is made with regard to the purchase, sale, short or holding of any of the above listed stocks, or any stocks mentioned on this blog.
Services and products referred to herein are trademarks, registered trademarks, servicemarks, or registered servicemarks of their respective trademark or servicemark owners.
The advantages of Mini Bonds to the issuers are that the interest is deductible to the corporation (unlike dividends which are not deductible).
The advantages to the investor are first, that the bonds are 'safer' than preferred stocks (in other words, if the corporation goes out of business, the bonds are generally paid off first before the preferred or common stock). Second, the Mini Bonds (with the exception of the perpetual debt bonds) have some limited protection against inflation versus preferred stocks in that if interest rates go up after purchasing them, their value will drop, however the par value (usually $25) will be paid back at maturity. Preferreds have no maturity. The third benefit is the small denomination, especially when looking at a $2,000 IRA investment. A fourth benefit is that since they are traded like stocks, there is more liquidity than buying or selling a $5,000 bond.
Examples of companies that issue these MiniBonds are:
AT&T
Con Ed
Duquesne Light
General Electric Capital
General Motors
Georgia Power
GMAC
Hilton Hotels
ING
Phoenix Companies
Stilwell
The Yahoo link below will bring you to a long list of these Mini Bonds:
yahoo.com
As always, no recommendation is made with regard to the purchase, sale, short or holding of any of the above listed stocks, or any stocks mentioned on this blog.
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Friday, September 07, 2007
What Stock has the ATT Stock Symbol
Many new investors are under the mistaken assumption that the stock ticker symbol 'ATT' is the symbol for the regular AT&T common stock; unfortunately, that is a big mistake. Their symbol is 'T', and has been for several years. A few days ago, when I knew that AT&T (T) dropped in price, I saw an article on Yahoo Finance which discussed the company and noticed in the little graph box on the upper right that ATT was up and wondered how that could be possible. I then noticed that the chart was referring to the 'ATT' stock symbol, not the ATT stock.
If you type ATT into Yahoo (YHOO) Finance, it shows it referring to a company called AT with no profile and no statistics displayed. If you enter it in Google (GOOG) Finance, it shows it referring to AT&T INC, with, again, no profile and no financials. It did have some interesting discussion board topics, such as "This is not the AT&T your looking for....", "What is this stock?", and a new investor poster had bought some of the stock and after realizing it wasn't the "real AT&T", wanted to know how to get out of it. Fortunately, another poster told him to just tell his stock brokerage firm to sell it (although over the last few days, he would have been better off in ATT than T).
I checked the New York Stock Exchange (NYX) website and even the AT&T (T) website, without any enlightenment. I finally discovered that ATT is the stock symbol for a senior note debt offering at a rate of 6.375% due 2056 issued by AT&T Inc. in February of 2007. Interest is paid on February 15, May 15, August 15 and November 15. The Senior Notes may be redeemed at any time on or after February 15, 2012 at 100% of the principal amount plus accrued and unpaid interest to the redemption date.
These listed traded senior notes are what I refer to as minibonds or microbonds. They are bonds that are traded just like stocks on the NYSE or American Stock Exchange for around $25 per share. They are very similar to preferred stocks except that they pay interest instead of dividends and they generally have a specific maturity date. They are also referred to as PINES (Public Income Notes) or QUIBS (Quarterly Interest Bonds) or QUICS (Quarterly Income Capital Securities) or QUIDS (Quarterly Income Debt Securities).
By Fred Fuld at Stockerblog.com
If you type ATT into Yahoo (YHOO) Finance, it shows it referring to a company called AT with no profile and no statistics displayed. If you enter it in Google (GOOG) Finance, it shows it referring to AT&T INC, with, again, no profile and no financials. It did have some interesting discussion board topics, such as "This is not the AT&T your looking for....", "What is this stock?", and a new investor poster had bought some of the stock and after realizing it wasn't the "real AT&T", wanted to know how to get out of it. Fortunately, another poster told him to just tell his stock brokerage firm to sell it (although over the last few days, he would have been better off in ATT than T).
I checked the New York Stock Exchange (NYX) website and even the AT&T (T) website, without any enlightenment. I finally discovered that ATT is the stock symbol for a senior note debt offering at a rate of 6.375% due 2056 issued by AT&T Inc. in February of 2007. Interest is paid on February 15, May 15, August 15 and November 15. The Senior Notes may be redeemed at any time on or after February 15, 2012 at 100% of the principal amount plus accrued and unpaid interest to the redemption date.
These listed traded senior notes are what I refer to as minibonds or microbonds. They are bonds that are traded just like stocks on the NYSE or American Stock Exchange for around $25 per share. They are very similar to preferred stocks except that they pay interest instead of dividends and they generally have a specific maturity date. They are also referred to as PINES (Public Income Notes) or QUIBS (Quarterly Interest Bonds) or QUICS (Quarterly Income Capital Securities) or QUIDS (Quarterly Income Debt Securities).
By Fred Fuld at Stockerblog.com
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