Post by
mouserman on Aug 27, 2022 10:09am
FFN unit NAV to Aug 26 = approx: $14.29
So my spreadsheet shows FFN losing about 54 cents since the midmonth update, and the US banks took a beating on friday after the fed's hawkish speech on friday.
FFN commons now have a value of $4.29 before dsitributions to preferreds of 5.625 cents and approx: 4.23 after .
THE premium on this underwater common share is very high @ 36 cents or about 8.5%.
Comment by
StratCap on Aug 27, 2022 12:27pm
Maybe some more bad news on the horizon for the banking sector as interest rates rising and loan loss provisions increasing. Payment deliquencies will likely rise as interest rates increase. Going to painful for some on the variable rate mortgages and lines of credit. FFN commons may not be going back to paying a distribution for a few more months IMHO.
Comment by
EdPaquette on Aug 27, 2022 6:54pm
Yes stratcap you're probably right about some amount of pain for the banks. I think bk is high enough to pay through the pain but ffn is doomed unless there's a consolidation. I think the lifecos can benefit from the interest rates without the pain that banks feel. That's why I bought lcs where the nav is similar to ffn but lcs has a discount to nav.
Comment by
EdPaquette on Aug 28, 2022 7:33pm
You missed my point. For 2 funds to have the same nav, but one is trading at a discount and the other at a premium, LCS is a better deal. Also banks need to build reserves and it's clear sailing for lifecos.
Comment by
flamingogold on Aug 29, 2022 5:03pm
I think we have increasing odds of a June retest of the lows, or within a few percent anyway. Powell really dropped the hammer on Friday by referencing Volker in his speech and his mandate to keep tightening rates to fight inflation. As they always say, don't fight the FED.