I nibbled just a tiny bit as the utility issues fell off today–but it was just a couple teeny, tiny nibbles.
I also have low ball orders in for some of the Gabelli CEF preferreds–last I looked none had triggered–but my lowball orders are $1 or more below the most recent trades–just to take advantage of any potential dump.
As those that have been in preferreds and baby bonds for many years know–you think you have a safe issue as it trades firm for a few days–then one day out of the blue the issue is taken out and shot!
Today I think I am down 2% or so–actually 2-3%–definitely painful, but not as bad as it could be. I did notice the Gladstone Capital Corp 6.125% baby bonds (GLADD) took a huge drop earlier today–I own this one. It fell as low as the $20/share area on some sizable block dumps–but it is now back to $22.32.
Of course as I mentioned earlier we are seeing dividend cuts and suspensions–get used to it, as it will be the norm in the months to come, and any prudent company would suspend, because survival should be top of mind for them.
I assume folks out there are positioned where they want to be as we have had days to get things either bought, sold or simply sold.
I realize that income investors come in all types–some folks have more money than they will ever need and are happy to ‘ride out the storm’. Others need money to generate future income streams to live their normal lives–preserving capital is of the utmost. So maybe one group is a net buyer while the other is a seller–do what you have to do–capital preservation is a key.
For all income investors the time will come–I have no idea when that will be, that you will need to buy. If you have had to raise cash to sleep at night you must have an idea where you would redeploy when the time is right.
There will be no whistles or bells at the bottom, so have that list ready.