After a few days of respite we saw a rough day for banking preferreds – mostly red, but the red wasn’t as deep as we have seen in the past.
It is obviously too early to go ‘all in’ with the banking preferreds–but there should be no doubt that there is opportunity coming–unfortunately we don’t know when that opportunity will finally present itself.
I continue to watch those bankers I own for any new news–i.e. uninsured deposit level etc. so I don’t have to start my hunt later ‘from scratch’.
I see community bankers with current yields from 7.5% all the way up to almost 10% and most of these have presented solid earnings recently–but this story is not static and you see from a day like today that it looks like there is an ‘all clear’, but these things always take longer to play out than one would ever predict. Patience!