The U.S. Treasury just announced that its reopening auction of CUSIP 912810RR1 - a 29-year, 4-month TIPS - resulted in a real yield (after inflation) of 0.666%. It was the lowest yield for any 29- to 30-year TIPS at auction since February 2013.
Because this Treasury Inflation-Protected Security already carries a coupon rate of 1.00% - set in a February 2016 auction - buyers at today's auction had a pay a big premium. The adjusted cost was about $110.67 for $101.65 of value, after accrued inflation is added in. This TIPS originally auctioned with a price of $96.79, so it has gone up in value about 14% in 8 months. That's an indicator of how volatile a 30-year TIPS can be.
Here are results for 29- to 30-year TIPS auctions over the last three years. Today's yield was... more
WWE (NYSE: WWE) announced that its Board of Directors today declared the Company’s regular quarterly dividend of $0.12 per share for all Class A and B shares of common stock. The record date for the dividend will be December 15, 2016 and the payment date will be December 27, 2016.... more
Comcast (Nasdaq: CMCSA) continues in the fight against cord cutting by the new age consumer. The firm purchased DreamWorks Animation earlier in 2016 to augment its position in the kids and family entertainment space through its Universal Filmed Entertainment Group. The deal is yet another indication that traditional network-based entertainment companies are looking for other means by which to expand their revenue base. A main factor in the acquisition was Comcast's interest in the potential of theme parks and products associated with DreamWorks' portfolio of films.
Comcast and Disney (NYSE: DIS) are both taking the cord-cutting challenge head-on through online entertainment provider Hulu, which is jointly-owned by the two firms and Twenty-First Century Fox (Nasdaq: FOX). Hulu... more
J.B. Hunt Transport Services, Inc. (Nasdaq: JBHT) announced today that its Board of Directors has declared the regular quarterly dividend on its common stock of $ 0.22 (twenty-two cents) per common share, payable to stockholders of record on November 4, 2016. The dividend will be paid on November 18, 2016.... more
Checking out my portfolio today (10/19/2016) I noticed that HQH (Tekla Healthcare Investors) was selling at $21.72 per share which is quite a bit lower than the $25.00 entry point I chose in this article. This CEF had a high in the past 52 weeks of $30.90 per share and a low of $19.16. It currently offers a yield of over 8.5% and sells at a 7% discount to NAV. One can see from the graph below that it has been on downward spiral for almost a year.
Source: Interactive Brokers
Source: Interactive Brokers
The 5 year graph above shows that the current price is lower than it was for most of 2013. Many healthcare industry equities are going against the market; their share prices are slipping while equities in many other industries are rising. Bloomberg suggests this price... more
I recently had the opportunity to speak with Eric Ervin, President and CEO of San Diego based Reality Shares, a boutique firm boasting a line-up of four fairly-new-to-market ETFs focused on dividend strategies. Namely:
Reality Shares DIVS ETF (NYSEARCA: DIVY) Reality Shares DIVCON Leaders Dividend ETF (BATS:LEAD) Reality Shares DIVCON Dividend Defender ETF (BATS:DFND) Reality Shares DIVCON Dividend Guard ETF (BATS:GARD) The firm has won numerous awards owing to its efforts, including DIVY being named "Most Innovative ETF - Americas" at this year's 12th annual Global ETF Awards.
Reality Shares President & CEO Eric Ervin
Unlike some of the mundane dividend and dividend-growth ETFs that seem to mimic or largely resemble large-cap weighted indices,... more
Svenska Handelsbanken (OTCPK: SVNLY) (OTCPK: SVNLF) reported Q3 results. The numbers were strong across the board. Net interest income increased by 3% q/q, thanks to mortgage margins' tailwinds in Sweden and volume growth in other home markets.
Source: Company data
The results once again highlighted the company's excellent cost control management. SHB's cost-income ratio reached 41.2% in Q316, a marked improvement from 44.5% a quarter earlier. The group's return on equity increased by 50 bps q/q to 14.7% in Q3. It is also worth mentioning that Handelsbanken's business model is still generating a significant premium over Sweden's risk-free interest rate.
Source: Company data
SHB's asset quality remains superior to peers, thanks to its... more
Cash bond markets are grossly overstating Constellium N.V. (NYSE: CSTM) credit risk with a cash bond YTW of 7.602%. Moreover, Moody's is overstating CSTM's fundamental credit risk, treating it as a high-yield B3 credit. Our fundamental analysis highlights a much safer credit profile for CSTM, whose cash flows would exceed the firm's operating obligations in each year going forward. While the firm would lack sufficient liquidity to navigate their sizeable 2021 debt maturity headwall, they could reduce maintenance capex by 50% to free up enough liquidity to service all obligations through 2022, if they choose not to refinance their debt. Given the firm's sizable cash on hand levels, they have several years to improve their profitability and credit position, which, combined... more
This past Friday, October 14th, commenced federally mandated rules on money market funds -- what we typically think of as cash in our investment accounts -- and marked the end of the era of prime money market funds.
Money market funds first came about in 1971 at a time when banks were prohibited from paying an interest rate on demand deposit accounts, and for those old enough to remember, you got a toaster or a clock radio as incentive to put money in checking accounts. Money market funds created an interest-bearing alternative to bank accounts; now, neither earns anything worthwhile.
The recent sweeping SEC reforms on money market funds has bifurcated the money market space by distinguishing between institutional and retail money market funds.
The rules create new definitions... more