Well it is about 90 minutes to the release of the latest consumer price index (CPI) and while we all know that the number will be plenty ‘hot’ I am hoping that it will be either at expectations. After the shellacking that income issues took yesterday a breather is in order. The forecast is for a reading of 8.4% year over year–a 40 year high.
Yesterday income issues took a loss of over 1% (on average)–so the average price of a $25/share is at the lowest level since 7/2020 (which was covid related) when it hit $23.66.
With the losses yesterday I took a tiny nibble on the investment grade issue of Equitable Holdings 5.25% perpetual preferred (EQH-A) which is trading now at $21.86 for current yield of 6.04%. Obviously this issue–like other investment grade issues could/will go lower–so the nibble is more of a placeholder position which will be added to in higher quantity in the months ahead.
So hold on it could be a wild interest rate day (Fed official Lael Brainard also speaks mid day today).