The futures markets are up over 1% at 6 a.m. central after a strong showing on Monday.
Each time equities bounce strongly the discussion by all the ‘smart folks’ is about the ‘bottom is in’. Of course this discussion has been happening for a month and each time the smart folks are wrong. Whether the bottom is in is of only minor consequence to me–although I like to see common equities move higher because they sometimes ‘drag’ preferreds and baby bonds higher–it soothes the ‘nervous nellies”
I see the 10 year treasury right at 4%–so fairly stable from yesterdays close (4.02%)–hoping this will remain in a 5 basis point range to help income issues –again it would sooth the ‘nervous nellies’.
Yesterday I nibbled the CHSCM 7.10% reset rate perpetual preferred issue with a current yield of 7.56% as well as the 6.50% Ready Capital perpetual (RC-E) with a current yield of 8.92%. I have no plans to buy today–but one never knows what opportunities will present during the day. My cash position remains very small, but yet adequate to continue nibbling.