F*ck ur calls, Full Regard Mode Enabled

Everything is better with a good hug

Let's sip to good health and good company

[Happy crab noises]

Boldly go where we haven't been in a long, long time.

Sometimes you just got to dance with the doots.

Shows the Buy Award and grants %{coin_symbol}100 Coins to the community. Exclusive to this community.

  1. I can’t tell if the white pawn is a hat for the rook or connected to the queen

  2. Most banks should be able to do this for you. And if they can, they are supposed to provide the service to you independent of whether you have an account with them.

  3. I do have chase but just a credit card. To open a checking account it’s either $5 or maintain a monthly balance of $1500.

  4. So I went back and checked and I was wrong that they are required to provide the service to you, even if you don’t hold an account with them. It is at the discretion of the bank to redeem bonds for people who do not hold accounts with them.

  5. Equities have been in vogue for the past decade and a half. Going a bit further back, I think I saw a chart that reflect diverging performance of bonds and equities since just a bit after going off the gold standard, with bonds under performing, and equities out performing.

  6. The correct move was to take the rook on g1 with the Queen. Then move the rook as you did on your next move

  7. Well I have a bond right now at a rate of 6.8%. I was wondering if it was possible to add more funds into that bond, as opposed to just getting a new I bond at the current rate which is lower

  8. Wild swings in interest rates in the double digits would be needed to produce substantial movements of the price of those securities, since the maturity is so short. For example, on a one year maturity, the change in yield is very close to the expected price appreciation/depreciation of the debt: if the one year yield were to go from 2% to 5% over night, and I had to sell, I'd be out a bit less than 3%.

  9. Short maturity bonds aren’t as sensitive to interest rates. Take a 1y bond for example. If the coupon is 5%, and then the day after it is sold rates magically drop 300 bips, you get a price appreciation of about 2.94%.

  10. No. If you decide to sell, buy something else. You can get one year CDs at higher rates than 4.3. The last CD I bought was a three month at 5.2%

  11. you really can't compare a 3 month cd to an i-bond.

  12. Question: How did Carl Icahn lose so much money when he has done so well

  13. But to get to this postion it looks like white moves twice in a row

  14. Incorrect. My notation is below the picture, although it is slightly wrong. It should read Nf6 instead of Nc6

  15. In the fact I think you have made a mistake in notation. It should be Nf6 and not Nc6

  16. Yes it was noticed elsewhere. Mine should be Nf6

  17. It is correct. It always has a rather high dividend. It's been beaten down by a short report as of late

  18. a5 is decent. Doesn't accomplish much though

  19. So, preferred stock—unless it has a mandatory redemption date—trades like a bond with infinite duration and with a call option (usually, because there is an option to redeem the bonds).

  20. Right now? Yeah. Easily, but without any growth. Preferred stock of Capital One is at 7+%

  21. I am currently long PACWP. The main worry is the fact that if deposits continue to fall, liquidation of securities and loans will become necessary because they can’t borrow into infinity. If that happens it will spiral from depositor panic over liquidation. Then the bank will be taken into receivership. Currently the profitability outlook for the bank is bleak for the rest of 2023 and the option market is pricing in roughly a 40-50% chance of failure by year end. This could be inflated as PACW is probably the highest risk bank so people are buying options as a total financials hedge. PACW also seems to be paying their dividend to display confidence in the business, we will see if that is worth it or if retaining $10 million in cash a quarter would have been the smarter move. Overall, the investment is risky but I like the risk reward and think the probabilities are in the favor of the preferred holders.

  22. Yeah it looks like they have the cash to suffer through should it persist for a couple of quarters, but (a) it is really up to the FDIC whether or not to take them over (even some Signature bank bears were a bit surprised by the receivership) and (b) whereas historically depositor flight precedes equity flight, the situation appears to have reversed at present.

  23. Eh, two problems: Preferred dividends are optional. They don't default if they refuse to pay. An inadequately capitalized bank may elect to suspend preferred dividends until they recover. They're probably cumulative, so they'd have to pay old dividends if they reinstate, but time value of money and all that -- this would make the investments less attractive.

  24. I don't think a scenario in which the dividends of the prefs are suspended is materially worse than the failure of any of the respective banks (i.e. the same amount of banks would need to suspend dividends as fail in any scenario to incur loss of capital, although the upshot is that the loss may not be permanent in the case of a suspension).

  25. Rates on an HYSA are variable. Long term treasury rates are fixed. Fixed rates provide more predictable cash flows. Variable rates do not.

  26. Banks have to lend long and borrow short. It’s impossible to run a (fractional) reserve bank any other way, because the duration for the borrowing is maximally short (you can withdraw it immediately after depositing it, with some caveats for large checks).

  27. QRTEA and CHTR are identical thought processes:

  28. Interesting. I assume the higher interest rates lower the value of the bonds?

  29. Yeah, the debt is marked on the book as par value, but they can retire it for under par if they buy back debt early. (CHTR technically has an EV of 150, but the market is letting them retire 2/3 of that—the debt—at a discount)

  30. Change the type of content you are posting to an image, rather than text with an image inserted, and it won’t get autodeleted

  31. No. The book value marks the the value of all assets, minus liabilities. The value of such assets, is usually either approximate or, in the case of debt lent to others, the par value (banks mark some, but not necessarily all, of this down).

  32. My short term savings (savings for less than 6 months of spending should something happen) is almost exclusively T Bills and banks CDs, all maturing a different intervals.

Leave a Reply

Your email address will not be published. Required fields are marked *

Author: admin