On a day with 50 mph winds and 12″ of new snow in Minnesota we are getting antsy to make a trade or two in the portfolios. I call them ‘boredom trades’. Got to be careful with boredom trades so I don’t do something stupid.
We had locked down nice profits in March in many of the newer securities we bought upon issuance and right now we have just a few of the shorter term flip type securities left. These are securities outside of our “base positions” which we specifically bought to hold only a short time and then take a profit when they avail themselves (at least we hope to do that–it doesn’t always work).
Right now we hold these positions that we hope to sell soon–
- Affiliated Managers 5.875% (NYSE:MGR) baby bonds bought at $24.78 a week or so ago when it first began trading. Today at $25.28–actually could be sold for a nice 2% gain
- Fidus Investment 6% notes (NASDAQ:FDUSZ) bought Tuesday for $25.45. Now trading at $25.68. This is dividend (interest) related as it goes ex 4/30. We are looking for another nickel or dime.
- Global Partners 9.75% preferred (NYSE:GLP-A) bought 4/3 for $25.38 and now at $25.50. Again dividend related as it should go ex on 4/30 (for a tasty 60 cents/share) so hoping for a lift in the next 10 days or so.
So 2 of 3 of these could be sold soon–today or tomorrow maybe as we are just looking for quick 1-2% gains.
The other item of note is that S&P Global announced a rebalance of the S&P U.S. Preferred Stock Index effective 4/22.
We know that many of you are aware of this already so it is not new news, but the rebalancing is adding 23 issues while eliminating just 3 (one of which is a $100 issue and another is a $50 issue).
The only $25 issue being eliminated is the GLIBP perpetual preferred issue from GCI Liberty. This is a 7% issue (was previously a 5% issue) and it is trading at $25.45. Haven’t seen downward price pressure on this yet–but maybe it will come.