Innovative Income Investor | Innovative Income Investor

We ALWAYS Have to Be on the Watch

Here is a Wall Street Journal article that is simply meant by me to pass on items I find today–of interest to me, but maybe not to you.

The article deals with structured finance, including CLOs (collateralized loan obligations). Given that I have exposure to this sector I like all opinions.

Here it is. It should be accessible to all.

Very Interesting GDP Data

Yesterday the Atlanta Fed updated their GDPNow forecast with a dramatic drop for the 1st quarter. This tool is updated every few days and the next update is on Monday 3/3/2025.

Can the economy drop off the cliff that fast? Guess we will have to wait and see.

Time to Swap Out of This Preferred

If you hold the 10.625% Wesco Reset preferred (WCC-A) you can claim your gains by selling this issue now. This issue has a reset on 6/22/2025 at a rate which would be in the neighborhood 14-15%. The ‘spread’ on this one is 10.325%. Current yield to maturity is under 2%. The company already has announced plans to call this issue.

The SiriusPoint 8% resettable preferred (SPNT-B) has a year before it will likely be called and is trading at $25.23 right now–so if one could grab it a little lower it would be a nice replacement for the Wesco issue. The yield to maturity (depending on where one can by it) is around 7%

PCE As Expected

Well we got the personal consumption expenditures number today and everything for the most part was right on forecast. Next week the big number will be employment which comes next Friday.

The 10 year treasury is trading around 4.23% or so helping to relieve my rate anxiety—so today I start shopping again for something to buy. No doubt I won’t buy bunches of anything but will once again be looking to buy something with what I believe is 3-4% capital gains in the next year, coupled with a 6% (more of less) yield.

Looking at my accounts they all end up higher by 1/2% on the month–just like January. Of course this shouldn’t be a giant surprise since the average of my portfolio holdings is right around 6% annualized right now. This is ultra conservative, so you that have more perpetuals probably whacked my performance by 2x.

Equities are starting off a little higher today–we’ll see if markets can hold their gains, unlike recent days.

Headlines of Interest for Holders of Preferred Stock and Baby Bonds

Below are press releases from companies with preferred stock and baby bonds outstanding. Additionally, news of a more macro economic importance may be posted.