Markets have been red all day–not in a plunging sort of way, but one can see that there are plenty of folks looking to get more cash in their accounts–each time the S&P500 starting moving a bit higher selling moves in slowly to drive prices lower.
Watching my preferreds and baby bonds is a bit like watching paint dry–down about $200 (a rounding error).
I was not planning to do a thing today–and probably won’t, but I did see 1 interesting issue that I am going to watch. Federal Agricultural Mortgage (AGM)–has 5 preferred issues outstanding. 1 issue is a fixed to floating issue with a 5.49% current yield while the other 4 issues are fixed rate with current yields of 6.37% to 6.71%. These are all non-cumulative.
The reason these are potentially interesting to me is because most of their loans are backed by the USDA–not your typical mortgage REIT (this is not a REIT at all). Thus something in the 6.7% area looks pretty attractive. We’ll see.