The pressure has been on common shares all week and through yesterday the general market downdraft had pulled preferred shares an baby bonds down by about 15 cents on the week.
Right now the average share price is down by 29 cents on the week and while investment grade issues sometimes hold up better than the general issue population that isn’t true right now. Investment grade issues are off 30 cents on the week.
For the last 2 weeks I have been watching the lodging REIT preferreds–this is the sector that has been beaten up quite a bit–I show shares off about 4-6% in recent trading. This includes those shares from the strongest REITs. For instance the RLJ Lodging Trust $1.95 issue is off 90 cents today. Other strong company’s have been taking it on the chin also–this includes the Sunstone Hotels and Pebblebrook Hotel issues. All the lodging REIT preferreds are here.
As always I am looking for bargains, but honestly a bargain is in the eyes of the beholder–I am not talking 25 or 50 cent lower bargains (although in some utility baby bonds and CEF preferreds 50 cents or a dollar lower might make bargains)–I’m mostly talking in dollars and I am not expecting to see those right now.