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At the Least An Interesting Day

So we have got nice bounces in some of the banking preferreds off their lows–i.e. First Republic (FRC) and Customers Bank (CUBI). As I mentioned earlier the ‘brave’ step in and buy and reap the benefits. From the comments section I see we had some ‘brave’ folks–no surprise. I hope folks didn’t panic out at the lows–I know it has been painful for many and one is always tempted to sell out at the bottom, but it seldom is the correct move (although if the FDIC seizes the bank that is a different story).

In a simple point of view one would guess that with the Fed stepping in with liquidity that all would be fine–NOT. This will take weeks if not months to finally all play out–hardly ever do they play out in a day or two.

If you have been hunting CDs today the offerings from the big banks no longer exist (at least on FIDO)–I suspect they have sold enough of them for now and we will see lower rates when we see them again. There are quite a few offerings from banks I have never heard of–I guess they are probably alright to own, but for now I will just collect money market interest.

Don’t unbuckle your seat belts just yet–we have CPI and PPI yet this week so there can be plenty of ‘excitement’.

To peruse the bank preferred carnage go here.

17 thoughts on “At the Least An Interesting Day”

  1. SOCGP 25.07
    UEPEP 81.90
    REXR PB 21 75
    ONBPO 24.69
    EXSR 98.00
    Don’t ask about my other bank preferred

  2. I bought a 2k shares of PACWP today at $8.62, it closed on Friday at $24.65. This reminded me of a Covid like buying opportunity when a lot of the MREIT preferreds fell into the $8-9$ range.

    Anyone else pick this up?

    1. I own it, but did not buy more today. Perhaps double down tomorrow; I want to see the CPI first. I don’t mind if I don’t get the lowest price.

    2. I scooped it a couple times but to chicken to hold.
      Any thoughts on the WAL/PA or WAL in general?

      1. They are up this morning! :). I might pick up some preferred, I rarely buy common stocks.

    3. I bought PACWP last Friday at $18 and then again at $16 so I was obviously too soon but stayed away from it today. However, I did buy several other bank preferreds from SNV, Schwab, FRC , FHN, and maybe another. Then I bailed from the computer because I couldn’t watch any longer.

      1. I will look into these – thanks for the ideas. I also picked BOH (Bank of Hawaii) preferred yesterday trading around 13.75.

    4. I have usually tried to avoid west coast banks, utes and real estate. Looking at the train trucks on my back from my small holding of PACWP, I remember why now

      Didn’t buy any more of it. Bought small amounts of several other bank preferreds I am more comfortable with. I did double down on my CUBI-F and thankfully made a nice chunk of change (cashed out the trade as I had a full position already) bringing down my cost basis on my old shares fairly close to where it closed.

  3. well, if a $25.00 preferred is trading at $12.50, you have a 50/50 chance of breaking even if you buy 2 of them. I made off like a bandit during the COVID lockdown, buying some baby bonds at 7-10 bucks a share, only to have them recover. (but then again, I also had some SBNY $80 puts that I cashed in for a 300% gain, feeling pretty satisfied with myself, and then watching them go to a 5000% gain a day later…

  4. Today was reminiscent of Monday, February 24, 2020. That day three years ago was when the Covid crash started in our order book. The crash accelerated through the week. Hopefully this will not be a repeat performance, but that is unknowable.

    1. Tex, It was for me March 19 when all things went to hell, and that was a fun day. I remember getting SR-A all time low at $16.30 sold at a smidge over $25, then bought again around $21 and sold a couple bucks higher…All in the same day! Being too chicken I played in the cratered utes not the other crap and it cost me a lot of profits. Like CEQP- under $2…I regret not being a bit more brave!

  5. I had some GTC sell orders actually fill today (outside banking sector) in my higher risk bucket, so I used part of the proceeds to buy small amounts of a couple of banking preferreds. May buy a little more tomorrow – have to see how much blood is in the streets.

    I am too chicken to make a big six figure move on these, but I am willing to play a little. Better than the craps table…

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