Well another pounding for the income issues today. On one hand I am salivating looking at potential buys while on the other hand I am licking my wounds from the perpetual holdings I have which got whacked.
The $25/share issues took average losses of just over 1% today with many taking 2-4% losses. I will be doing some buying tomorrow–no doubt. No buying today because I was out of the office all day–no trading on my phone–besides this isn’t urgent–deals will be available for a while.
I will once again add small bites to some of the perpetuals I own (Arbor Realty and Ready Capital), but I am getting loaded to the gills on the high yield perpetuals I do own so I need to start more dipping into investment grade issues.
I am looking for issues in the 6% current yield area–maybe a little below and a little above. A few possibilities (and there are many more).
Just in the ‘A’s’ and ‘B’s’ (alphabetical list) I can find quite a few possibilities–some a little shy of the 6%, but some are already there.
After the pop in interest rates today (i.e. the 10 year treasury at 2.12%) we may not see much higher rates for the time being, but just like ‘legging in’ to my perpetual positions I will not jump in with full position buys in investment grade–nibble, nibble then wait a week and nibble, nibble. No need to rush–opportunity will be around for weeks and months.