Innovative Income Investor | Innovative Income Investor

What a Day – Crazy!!

I was watching my charts as the CPI was released today and it showed exactly what I expected (up or down)–a rocket up almost 1000 Dow points and a huge drop in interest rates.

I didn’t expect that the indexes would give back everything (or almost everything)–fortunately interest rates remain low at 3.48% – down 12 basis points on the day, although the 10 year was as low as 3.43%. Income issues have skyrocketed–one of my accounts is up about 3/4% which helps to restore some losses from previous days.

As we look forward to tomorrow and the FOMC meeting (started today) we can be very certain that we will see a 50 basis point hike–todays report cemented that in–but I also expect Powell, during the news conference, to be fairly sober and warn that it would be easy for inflation to remain hot or even tick higher. But certainly there should be no surprises relative to in the fed funds interest rate hike.

Keep your seatbelts on for tomorrow–and hope you don’t need them.

Waiting for Giant News

Well it is just about an hour until the consumer price index for November is released and there hasn’t been a more anticipated inflation number this year – we are just at the cusp of an announcement of the next interest rate hike making the number even more anticipated.

Expectations are for 7.3% (versus 7.7%) year on year with core CPI at 6.1% (versus 6.3%). Numbers more than a 1/10% or two outside expectations are likely to send markets (stocks and bonds) flying–all I can do is cross my fingers for mild reacts (ha ha – the algos don’t know mild – just overreaction).

Yesterday was a pretty quiet day in income issues even though the 10 year treasury rose 4 basis points. This morning interest rates are down a few basis points–really just drifting as we await the inflation numbers. Equity futures are up over 1/2% this morning–futures are always suspect in terms of pointing the way for regular hours trading and of course today they mean nothing–CPI will determine regular trading.

Of course I did nothing yesterday investment wise – kind of the norm for me – once one is positioned comfortably with investments there is little follow up actions required except occasional ‘check-ins’ on my accounts.

So now I will sit back and see what 7:30 a.m. brings us in the way of inflation.

Headlines of Interest

Below are some press releases from company’s that have preferred stock and baby bonds outstanding.

New York Mortgage Trust Declares Fourth Quarter 2022 Common Stock Dividend of $0.10 Per Share, and Preferred Stock Dividends

Diana Shipping Inc. Announces Direct Continuation Of Time Charter Contract For M/V Alcmene With SwissMarine

Newtek Business Services Corp. to Hold Investor Conference Call on Wednesday, December 14, 2022 at 8:30 am ET

Dynagas LNG Partners LP Reports Results for the Three and Nine Months Ended September 30, 2022

TPG RE Finance Trust, Inc. Declares Cash Dividend on Common Stock

OFS Credit Company Announces Fourth Fiscal Quarter and Fiscal 2022 Financial Results

Bank of America Corporation Announces Expiration and Results of Cash Tender Offers by BofA Securities Inc. for Certain Outstanding Depositary Shares of Bank of America Corporation

REIT Gladstone Commercial Approves Preferred Shares Buyback

REIT Gladstone Commercial (GOOD) has approved up to $20 million in buybacks of their preferred shares through open market transactions. Both of their issues are trading $5/share below liquidation value ($25s/share).

The press release is here.

The 2 outstanding issues can be found here. There are about 6.5 million shares outstanding in total.

StackingNickels had this in ‘reader alerts’ comments very early today.