Author: Innovative Income Investor

Markets parties pretty hard yesterday giving us some nice green to the portfolios—very nice given the number of red days we have seen lately as interest rates raced higher. It seems investors are a little giddy over a CPI number which represents 1 data point–in a sea of data points.

So now with bouncing prices it is a good time to review portfolios and determine if you are well positioned–at least well positioned according to where you think interest rates (longer duration rates) are heading. Do you have too many perpetual (if you think rates are going higher)? Or too few perpetuals ,which could see decent capital gains, if rates move lower.

I am well positioned, for now, with my personal thoughts that rates are going to trend pretty much sideways through the next few months. My primary thoughts are driven by what I believe will be the difficulty in reducing government spending thus keeping rates elevated.

I see that I got paid today for my Trinity Capital 7% baby bonds (TRINL) which reached its maturity date. It is likely that I may add to my Eagle Point Income 7.75% term preferred (EICB) or buy the 8% term preferred (EICC) with part of the proceeds–we’ll see. Eagle Point Income is the CLO debt focused closed end funds which makes it relatively safer than the other CLO closed end funds.