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A ‘Dusting’ of Red Today

While I thought we might see a bit of a downdraft in prices today it isn’t coming to pass. Our accounts are down just a tiny bit. The 10 year treasury yield is off just a fraction of a basis point–let’s say unchanged.

Equities are trying to rally a bit off their lows–actually they have rallied a good bit–earlier off about 1 1/2% and just now down just 1/2%. It’s hard to keep a strong market down.

I have trimmed a bit more around the edges–have not bought anything. I have 7-8% cash now–a tidy little sum to invest when the time is right (like when prices back off a couple percent–assuming they do)–if not I am stuck for a bit at money market rates–sounds much better to say that now as compared to a year ago.

I am waiting on Customers Bancorp (CUBI) earnings after the market close today and then looking for PacWest Bancorp (PACW) to announce tomorrow. Both of these have preferreds and while I own some of the CUBI preferreds I am just looking at the PacWest 7.75% fixed rate reset preferred (PACWP)–would prefer it some below the current $25.72 price though.

7 thoughts on “A ‘Dusting’ of Red Today”

  1. Bill Gross
    Mortgage REITs like NLY and AGNC likely to sell stock soon over presumed book value at lower than market price. I’m not selling but stopped buying for now.

  2. trimmed a little more mostly in Au/Ag miners adding to capital…
    flight of the bumble CDs?? read thru WesBanco’s report, NIM was up a little but lost over 300mil in CD deposits.. basically a smaller regional and it kind of lends into my thesis they are all going to have to pay up.. if loan growth weakens and delinquencies rise, maybe Net Interest Margins also compress.. really tho don’t think that will impact pfds just common. Cash up to 26.5% now. Nothing really on my radar to buy, Fido sweep paying 3.93% now.
    Feels frothy to me in risk? the FED won’t like that one bit. Bank of Canada on hold for now they said. Oh well..best to all.. Bea

    1. Well Bea unloaded 1/2 my position in UBP-H today. Have a couple more I want to trim hopefully in the next week.

  3. Tim have you looked at AUBAP? Just the one preferred and close to par.
    Unless it’s one you already own.

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