Innovative Income Investor | Innovative Income Investor

Spam Reporting Page

I have added a menu item in the right hand column menu for Spam reporting.

If you notice true SPAM (or you think it is true SPAM) please report it there. I will try to check that page a couple times a day.

I had a SPAM page before–but now I have put the link higher up on the menu. It has come up again in some comments–all I need is time to address those situations.

It is extremely rare that we have SPAM show up–and it is even rarer for long time posters to put a SPAM link in comments so I don’t expect we will see much activity on this page. If we have true SPAM it will be removed–non spam links will remain.

I thank everyone for not posting SPAM–it is a rare site that is SPAM free.

Jay Powell on Deck

As many folks know I am less than thrilled each time Federal Reserve officials yak–and that goes doubly when the Chair speaks as he will today and tomorrow. In this case the whole thing is a ‘dog and pony show’—not really of much use as congressional people either praise the chair or beat him up. If these folks were so bright we wouldn’t have such a government fiscal mess. While these speakers irritate me, maybe my irritation should be with investors who act like a bunch of nervous Nellie’s every time these knuckleheads talk instead of acting rationally. Oh well–just deal with it.

For my part I have been super busy with my ‘real work’ so yesterday I was out of the office most of the day so did nothing investment wise–which would have probably been the case even if I would have been in the office. Collecting dividends and interest certainly is lower stress than trading in and out of various investment options. As I have mentioned before my current allocation of CDs, money markets, short duration high yield term preferreds and baby bonds and a sprinkling of perpetual preferreds has performed extremely well (relatively speaking). I am staying ‘green’, although it is very modestly green–I don’t see this changing for now–until I can get a firm conviction on the direction of interest rates down the road I won’t be buying perpetuals.

The 10 year Treasury is trading at a current yield of 4.53% which is up 5 basis points from the 4.48% close yesterdays while waiting for Jay Powell and then the CPI tomorrow. We have been in a trading range of all of 2025 of 4.4% to 4.8%, but news this week could push it to new lows—or very well may push it higher if CPI/PPI come in just a little hot. Guess we just have to wait and see.

So today I watch–that’s it. I will look for my next possible buy–but no pressure to do anything–boring, but I think it is the best way to preserve capital for now.

Headlines of Interest for Holders of Preferreds 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.

Apollo Commercial Real Estate Finance, Inc. Reports Fourth Quarter and Full Year 2024 Results

Dynagas LNG Partners LP Announces Cash Distribution for the Quarter Ended December 31, 2024 of $0.049 Per Unit

CTO Realty Growth Announces Fourth Quarter 2024 Earnings Release and Conference Call Information

Prospect Capital Announces Financial Results for Fiscal December 2024 Quarter

Hovnanian Enterprises Announces First Quarter Fiscal 2025 Earnings Release and Conference Call

Oxford Lane Capital Corp. Provides January Net Asset Value Update

Arch Capital Group Ltd. Reports 2024 Fourth Quarter Results

Energy Transfer and CloudBurst Sign Agreement for Natural Gas Supply to Data Center Project in Central Texas

Weekly Kickoff of No Doubt Another Exciting Week

Well we almost certainly have another exciting week to look forward to –up or down who knows, but likely in both directions. Last week the S&P500 moved up just 1/2%, but moved in about a 2% range. This week we have the consumer price index (CPI) and the producer price index (PPI) being released on Wednesday and Thursday respectively and additionally we have Powell testifying before the senate and house on Tuesday and Wednesday. Lots of excitement will be created.

The 10 year Treasury yield closed the week 4.49% which was down 8 basis points on the week. The yield moved in a range of 4.41% to 4.60% for the week. Economic data continues to push rates around–most data has been a bit mixed–some better than expected with some worse than expected.

The Fed balance sheet fell by$8 billion last week as the balance sheet runoff continues.

Last week in spite of interest rates falling 8 basis points for preferreds and baby bonds didn’t respond as the average share price fell by 2 cents. Investment grade issues rose 3 cents, banks rose 1 cents, CEF issues rose 2 cents, mREIT issues rose 3 cents.

We had one new income issue launched last week as mREIT PennyMac Mortgage Investment sold a baby bond with a coupon of a tasty 9%.

Rolling Into the Weekend with Freaky Friday

Well not really Freaky Friday—we should all know after a few weeks of a new administration that pretty much anything can happen.

We got employment numbers that were slightly better (overall) than forecast. New Jobs were a tiny bit light for January, but December was revised upward by quite a bit. Wages were a bit hot and the unemployment rate fell. All in all pretty neutral–but NOT supportive of any Fed Funds rate cuts anytime soon–of course subject to change any minute.

Stock markets reacted well to the news–until we started to get Fed yakkers and then word that there are more tariffs coming soon. This tanked stocks and we are now down 2/3%. The 10 year treasury has moved 5 basis points higher to 4.49%.

Yesterday I nibbled a bit as I mentioned I would likely be doing. I stuck to my short duration theme. I bought a little Eagle Point Institutional 8.125% Term Preferred (EIIA) @ $24.96. I already had a position in this one, but not a large position so I topped it off a bit.

I continue to look for opportunities. I will get my laundry list of holdings updated soon.