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Back on the Hunt Again

So we got the news out of the way with the Fed rate hike yesterday – and then plenty of news this morning – almost all of it bullish for the economy.

Jobless claims came in less than expected–and ongoing claims continue to move lower as well. Durable goods orders were strong–although taking out transportation they were flattish. The 1st read on GDP was stronger than expected. On and on – there is nothing here to make one think the Fed is wrong by lifting interest rates.

Checking CD rates just now I see that banks are not lifting their rates to match the FED – maybe they have plenty of deposits? Don’t know – will have to keep watching them.

I am back on the hunt right now for so preferreds or baby bonds to buy – not a lot as my cash stash is modest and will stay that way until 8/15 and 8/31 when I have some bonds and CDs maturing. I am very tempted to buy some more of the Affiliated Managers Group (AMG) baby bonds–a current yield of 6.5% for a very solid Baa1 issue (MGR) is fairly tasty. The company just released earnings yesterday and they are a very solid company. Also everyday I look at the CHS issues and at the 7% area should one just add more of these issues (CHSCM and CHSCN) – both are fixed to floating with a decent ‘spread’ but the upside is capped at 8%. We’ll see.

13 thoughts on “Back on the Hunt Again”

  1. Tim maybe your the person who bought the MGR I sold at 23 this week. I might look to get back in after the drop x-dividend.

  2. Citizens was offering 10 month Cds to customers at 5.50%………

    Also I see AHL C spiked to par, and for the life of me I can’t see why out of all APO owned companies that one is so relatively high.

      1. Well thanks….duh ok my bad. Just unreal how the fixed to float sector has turned from unloved to most cherished! I see SNV D VLYPO and ALL B have also jumped. Not counting the mcreits…..

    1. It will be interesting to see how long before they call CHSCO. Its callable in September, but they have a habit of not calling immediately.

      1. That was kind of an oops 😬. Have they called in the past? If the floaters will be 8% in a year-ish 7% range on the fixed would be a deal for them…?

  3. TLT took a hard downdraft to the $99.50 area – now back to $99.75. Long bond yields on the rise!

  4. One additional point “Core PCE was up 3.8% annualized, a touch below the estimate of 4%.” This is not to say that I believe Core PCE is the right measure. But it is one that the Fed believes in, so that makes it important. I am moving some of my assets from the money market to investment-grade preferreds. I believe now is the right time for me, to get some added yield above the money market rate. Especially since now over the next 60 days, no Fed rate increases since they are not meeting.

  5. Given the projections on rate cuts for 2024, both CHSCM and N would be at 8% throughout 2024 even with 6 rate cuts. Sounds good to me.

    1. I got a bit of CHSCL at $24.88 and a full boat of CHSCN at $24.80 over the past few weeks. Was hoping to add once some treasuries mature next Thursday.

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