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A Red Day, But a Orderly Day

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.

All of the issues can be seen here.

5 thoughts on “A Red Day, But a Orderly Day”

  1. here’s an Idea for some, bought an additional 700 shares today of Nuveen CEF, NXP 4.16% yield tax free A+ rated no leverage at 5 star morningstar.

  2. IIRC, another nice thing about the AGM preferreds over REIT shares is that they pay qualified dividends.
    I have been in and out of them for years.

    1. Private:

      The bad thing is that they are very illiquid and the bid-ask spreads can be gigantic. You really have to pick your spots with these preferreds.

      Last I checked the D, F, and G series are owned by PFF, so those can get real crazy.

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