Well another ugly day–I thought just maybe we would have gotten a ‘sell the potential tariffs’ and buy the actual tariffs–but I guess folks still are feeling threatened today by the future. We have gotten a couple of dead cat bounces today, but with the S&P500 down 1.6% as I type this one can’t predict the balance of the day. I am thinking we will have (or maybe need) a giant ‘flush’ yet today to weed out the sellers. Who knows?
With the 10 year treasury off another 5 basis points to 4.13% we are seeing just minor damage to portfolios–contrary to yesterday we are seeing red–I never like red but with the equity prices falling so hard it is just a matter of time until preferreds and baby bonds get pulled down as the baby goes out with the bath water.
I did buy a few CDs this morning at 4.35% (3 month) just because money is stacking up and I need to keep it at work somewhere. Still have no intention of buying prferreds or baby bonds now, but I will be watching my current holdings to see if I can get a bargain (bargains on a term preferred or short duration baby bond is defined differently than perpetuals to me–a drop of 50 cents in an issue that matures in a year or two may present great opportunity). Perpetuals are off the table for now (this week).
Picked up a small piece of XFLT-A a bit above par, added a tad of MITT-C in one acct, tanked up the jalopy @2.88/gal and called it a day. Not feeling upbeat about markets or the economy, we shall see.
Picked up 150 shares of CIM-D at 24.41
Tim; Just curious if you or others had any interest in that new TC Energy (TRP) baby bond? Its a 7% coupon. Not callable till June 1st, 2030. Iam not very well versed on the exchange rate, etc regarding a Canadian Company but will say it seems like a solid company. If there are any experts out there on Canada would enjoy hearing from them. In this now very Low Interest Rate environment I would think some folks might have some interest in this one. Sorry, I think its actually callable March 1st, 2030.
Yes Chuck, certainly have an interest in TRP Baby Bond but cant seem to find it at either Schwab or Vanguard. Do you have the CUSIP?
89352HBG3
Purchased schwab bond desk
Are interest rate cuts back on the table?
If so it might be time to lock in some longer duration yields.
Citadel, that is the problem with the uncertainty. Not knowing what is going to happen. Lowering short term rates is one thing, but longer term we have a lot of debt to service. I suppose like a lot of people have said a large portion is 3yr that the Treasury keeps rolling over. But I don’t feel comfortable holding perpetual preferred or 50yr business bonds if they are only going to give me a 5% or less as over the long term the value of the dollar loses to inflation.
Looks like that bounce is coming in. I noticed much of the red in my portfolio is coming from wide bid ask spreads and or last prices that you couldn’t actually buy anything at. Case in point AGM-D. I see what you mean about this issue.
Dead cat bounce, after a roll down of approx. 6% who wants to be a buyer? Lucky for baby bond holders holding up very well. This could get ugly if no party blinks. If Consumer spending has shifted and is pulling in, the damaged has just begun for equities…