Income Securities Tables
QuantumOnline offers nine separate tables of exchange-traded fixed income security information. The All Exchange-Traded Income Securities Table combines all six income security categories into a single, very large (and slow loading), table. The All Preferred Stocks Table combines the preferred stocks, trust preferred stocks and convertible preferreds into a single table. The Preferreds eligible for the 15% Tax Rate Table separates the preferreds that we believe are eligible for the 15% tax rate on to their own table. The last six tables list the six separate exchange-traded fixed income security categories on separate tables for ease of reference by the user interested in researching a particular category of income security.
Clicking on the table's heading will produce the selected table sorted by security name. Clicking on a selected sort order in the row labeled "Sorted by:" from the chart below a table's heading will produce that table sorted by Ticker Symbol, Security Name, IPO Date, Redemption (or Call) Date, Moodys Credit Rating, Liquidation Preference (Issue Price), Call (Redemption) Price, Distribution Rate (Coupon Rate) in %, or Distribution Dates.
All Exchange-Traded Income Securities Table Select Sort Order below:
NOTE: This table is very large and takes a long time to load (up to 3 minutes with a 56K dial-up connection). The table provides detailed information for all exchange=traded fixed income securities that QuantumOnline covers including preferred stocks, trust preferreds, third party trust preferreds, exchange-traded debt securities, convertible preferreds, and mandatory convertible securities for which we have detailed information such as the credit ratings, IPO prospectus, redemption dates, maturity dates, interest rates, distribution dates, etc. The table currently includes about 1600 preferred and income securities. This is a dynamic table that queries the QuantumOnline database each time it is called. The data behind the table is revised and updated on a constant basis. Therefore the table changes continually due to additions, deletions, corrections, and updates to the information behind the table. Separate tables are available below for each of the six types of securities mentioned above if you wish to research the various categories of securities separately.
All Preferred Stocks Table Select Sort Order below:
NOTE: This table is quite large and takes a while to load (up to 2 minutes with a 56K dial-up connection). The table provides detailed information for all preferred securities that QuantumOnline covers including regular preferred stocks, trust preferreds, and convertible preferreds for which we have detailed information such as the credit ratings, IPO prospectus, redemption dates, maturity dates, interest rates, distribution dates, etc. The table currently includes about 1200 preferred stocks. In general, these preferreds have a $10, $25, $50, or $100 liquidation preference (issue price), pay a fixed quarterly dividend, and are redeemable (callable) in five years from the date of issue at a specified call price. The trust preferreds have fixed maturity dates while the other preferreds have no stated maturity. The convertible preferreds are convertible any time at the holder's option into a specified number of common shares. This is a dynamic table and the data behind the table is revised and updated on a constant basis. Therefore the table changes continually due to additions, deletions, corrections, and updates to the information behind the table. Separate tables are available below for each of the three types of preferred securities if you wish to research the categories of preferreds separately.
Preferreds eligible for the 15% Tax Rate Table Select Sort Order below:
This table lists the preferred securities that we believe are eligible for the 15% income tax rate on dividends. To date, we have found no definitive, official information on exactly which preferred securities will be eligible for the reduced tax rate. To see the information we have discovered so far regarding which securities are eligible for the 15% tax rate, see our 15% Tax Rate on Dividends page. At this point in October 2003, it is our understanding that the U.S. Treasury Dept. has yet to write the regulations which will define which securities are eligible. If anyone has specific, definitive information on the new tax regulations, we would like to hear of it. At this time, the table reflects our best estimate of which securities will be eligible to pay tax advantaged dividends. From what we know now, many or most of the foreign preferred dividends should be eligible for the lower tax rate and we have included all foreign securities in the table as we have no definite criteria as to exactly which foreign securities will be eligible. There is no guarantee that every security listed on the table is eligible for the lower tax rate on dividends. It is the responsibility of the user to confirm the eligibility on any individual security from other sources before actually purchasing a security believed to be a tax advantaged dividend preferred security on the basis of information supplied by this table.
To develop this table we have used the following criteria to remove stocks from our comprehensive Exchange-Traded Income Securities Table: No REIT Securities, No Trust Preferreds (hybrid securities with tax deductible interest on the debt securities), No Debt Securities, No Securities with Distributions Suspended.
This table includes the traditional preferred stocks that are also included in the above comprehensive tables. This separate table is for the convenience of the QOL user who wishes to research only traditional preferred stocks.
Preferred stocks are the traditional preferred stock of corporate finance. They were the only type of preferred stock issued up until the early 1990s when trust preferreds appeared on the scene. Now traditional preferred stocks are issued mainly by REITS, some banks, closed-end funds, etc. Traditional preferred stocks generally are perpetual securities that have no stated maturity date. Recently issued preferreds are redeemable on or after five years from the date of issue at the issuer's option at par (the issue price) while the older preferreds are now redeemable any time at the issuer's option, normally at a small premium. Most preferred stocks pay quarterly dividends while a few pay monthly dividends. In payment of dividends and upon liquidation, the traditional preferred ranks junior to the company's debt and senior to the company's common stock. Most traditional preferreds are eligible for the 15% tax rate with the exception of the preferreds issued by REITs which are NOT eligible for the lower tax rate.
Traditional Preferred Stocks Table Select Sort Order below:
Trust Preferred Securities Table Select Sort Order below:
This table includes the trust preferred securities (also called hybrid securities) that are also included in the above comprehensive tables. This separate listing is for the convenience of QOL users who wish to research only trust preferred securities.
Trust preferreds represent most of the new preferred security offerings being issued recently. The trust preferred is a hybrid security consisting of a preferred stock issued by a special trust and a debt security issued by the company. The special trust is a subsidiary of the company set up solely for the purpose of selling and administering the trust preferred securities. The trust sells their preferred securities to investors and then uses the proceeds from the sale of the trust preferred securities to buy debt securities (debentures, etc.) from the company setting up the trust. The debt securities are generally junior subordinated deferrable interest debentures, which are the lowest ranked of the debt securities issued by the company, and which generally have a maturity date of 30 to 50 years from the date of issue. The interest payments of the debt securities, paid by the company to the trust, are used to fund the trust's distributions to the preferred security holders. When the debt securities mature and are paid off, the trust in turn uses those funds to pay off the trust preferred securities which mature on the same date as the debt securities. Trust preferreds can be redeemed (called) at the company's option, generally at the issue price (liquidation preference), and generally on or after five years from the date of issue. Redemption of the securities, on or after the specified optional redemption date, is optional for the company but, if called, the call for redemption is mandatory for the holder of the securities. The debt securities generally have a deferrable interest clause that allows the company to defer distributions for up to five years at their option and for any reason but not beyond the maturity date. A distribution deferral will generate a very unpleasant situation for the preferred holder as the tax laws require the holder to pay taxes on the deferred but accruing dividends even though the holders is not receiving any cash. The company also provides a rather limited guarantee for the trust preferred that guarantees that, if the company pays the interest payment to the trust, the company guarantees that the trust will pay the dividend payments to the security holders. The advantage of this hybrid arrangement to the company is that the interest paid on the debt securities is deductible from their income taxes while normal preferred dividends would not be deductible. Trust preferreds are NOT eligible for the 15% tax rate on dividends.
Third Party Trust Preferred Securities Table Select Sort Order below:
This table contains provides detailed comparison information on over 190 third party trust preferred securities. This separate listing is for the convenience of QOL users who wish to research only third party trust preferred securities. The table includes a variety of third party trust preferreds which are similar to trust preferred securities and which should be of interest to income investors.
Third party trust preferreds (TPTPs) are securities generated by Wall Street firms such as Merrill Lynch (Merrill Lynch Depositor), Lehman Brothers (Lehman ABS), Morgan Stanley (MS Structured Products) and Citigroup Global Markets, formerly Salomon Smith Barney (Structured Products Corp.) and others. The securities are sold under a variety of names and acronyms including CABCO Trusts, Corporate Backed Trust Certificates (CBTCs), CorTS, PCARS, PPLUS, SATURNS, STEERS, TRUCs, etc. The firms buy institutional preferred and debt securities on the open market and then repackage them for sale to individual investors. To do this, the firm sets up a trust that buys the institutional securities from the firm and then sells the third party trust preferred securities to investors. Then, the trust collects the distributions from the underlying security issuer and pays the investors their dividends as established in the trust security's IPO prospectus. The distribution percentage paid to investors normally differs from the underlying security's distribution as the firm has generally bought the underlying securities at a premium or discount from the original issue price. Another basic difference of these securities is that they generally pay their distributions semi-annually rather than quarterly. These securities often have some unusual call provisions involving call warrants, etc. that are quite difficult to understand but often boil down to the securities in reality being callable on or after five years from the date of issue at par. Third party trust preferreds are NOT eligible for the 15% tax rate as the underlying security issuer uses the interest paid as a tax deductible expense which makes the security ineligible for the new tax rate.
Exchange-Traded Debt Securities Table Select Sort Order below:
This table includes the 110+ exchange-traded debt securities, sometimes called preferred equity traded (PET) bonds, that are also included in the above comprehensive Exchange-Traded Income Securities Table. This separate listing is for the convenience of the user who wishes to research only exchange-traded debt securities.
Exchange-traded debt securities (ETDSs) are corporate debt securities designed for sale to the individual investor. They include the debentures, notes and bonds that are traded on the stock exchanges and resemble preferred stocks in their basic features. Exchange-traded debt securities generally mature in 30 to 100 years. The debt securities are normally redeemable at the issuer's option on or after five years from the date of issue at par. Most of these debt securities pay quarterly interest distributions. In payment of interest and upon liquidation, the exchange-traded debt securities rank junior to the company's secured debt and senior to the company's preferred and common stock. In contrast to the more common $1000 corporate bonds, exchange-traded debt securities are issued in $25 denominations and can be traded on the stock exchanges in the same manner as common stocks. These debt securities are NOT eligible for the 15% tax rate on dividends as they pay interest, not dividends.
Traditional Convertible Securities Table Select Sort Order below:
This table includes the 150+ traditional convertible securities that are also included in the Exchange-Traded Income Securities Table above. This separate listing is for the convenience of the user whose wishes to research only traditional convertible securities.
Convertible preferreds have a $10, $25, $50, or $100 liquidation preference (issue price), and pay a fixed quarterly dividend. The shares are convertible any time at the holder's option into a specified number of common shares based on a specified conversion price for the common shares. Generally the company has the right to force conversion of the preferred shares whenever the price of the common stock equals or exceeds a specified price for a specified period such as 20 trading days. They are sometimes redeemable (callable) at the issuer's option on or after two to five years from the date of issue at a specified call price under a variety of circumstances. In regards to the payment of dividends and upon liquidation, these preferred shares normally rank junior to the company's debt, equally with other traditional preferreds of the company and senior to the common shares of the company. These convertibles offer the possibility of market price appreciation (or depreciation) if the price of the company's common increases and therefore can provide some inflation protection to the income investor together with the associated market risk. These convertibles would generally pay a slightly lower dividend rate than preferred stocks. The conversion provisions can be complicated and each individual convertible should be studied via the QuantumOnline description and the prospectus and the special conversion terms understood before considering a purchase. The dividends paid by at least most of the convertible preferreds are eligible for the 15% tax rate.
Mandatory Convertible Securities Table Select Sort Order below:
This table includes the 65+ mandatory convertible securities that are also included in the Exchange-Traded Income Securities Table above. This separate listing is for the convenience of the user whose wishes to research only mandatory convertible securities.
Mandatory convertible securities are similar to convertible preferreds with the very major exception that they have a fixed conversion date and a variable conversion rate in terms of the number of common shares per preferred share. They include Equity Units, Equity Security Units, ACES, DECS, FELINE PACS, FELINE PRIDES, MEDS, PCARS, PEPS, PIES, PRIDES, SAILS, etc. Mandatory convertible securities have many special provisions that need to be understood by the investor before any purchase is considered. In general, the securities pay higher distribution rates than preferred stocks. The securities are generally comprised of a stock purchase warrant and a debt security. They are mandatorily convertible at a specific date (generally 3 years from the date of issue) into a variable number of shares of the common stock of the company with the number of shares depending on the market price at the time specified for mandatory conversion. The potential investor in these complicated securities should definitely read and understand the terms of these securities as summarized in the QuantumOnline security description and as defined in the issue's IPO prospectus before considering a purchase. Since the mandatory convertible securities pay distributions based on a debt security that pays interest, the distributions of these securities are not eligible for the 15% tax rate.