The poundings of common stocks continue to take place today, but with a totally different bond market reaction.
With the S&P500 off just over 1% the 10 year treasury is moving sharply lower as well–off 13 basis points (13/100 of a percent) to 1.70%. Yesterday with the S&P500 off just less than 1% the 10 year treasury was actually up 6 basis points from last weeks close–this made no sense. Obviously the bond market was betting on a trade deal–which was in conflict with stocks.
I though for sure I would find some preferred stocks and baby bonds beginning to fall in sympathy with common stocks today–but NO–they are virtually unchanged, on average, over yesterdays prices. Both junky issues and investment grade preferreds and baby bonds are actually about even (although taking out the CBL and Just Energy issues from the picture shows prices up a couple cents).
We do note that the Pennsylvania Real Estate Investment Trust (PEI) perpetual preferreds are off 8-10% (1.50 to 2.00) in sympathy with CBL no doubt. You can see the PEI issues here.
An income issue holder has to be happy right now with the reaction of our issues to this rocky market. BUT this could change. Remember last December–I went into the month with a nice gain for the year and ended the month with a 1% loss for the year–11 months worth of work up in smoke in 30 days. Fortunately this year has been kind and thus far I am happy with gains, but have plenty of dry powder available.