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Made a Safe Buy This Morning

I’ve been looking all week for a buy of a perpetual preferred and finally pulled the trigger on a ‘safe’ issue this morning.

I added to my GAMCO (Gabelli) Gold and Natural Resources 5% perpetual (GGN-B) @ . Current yield is 6.12% and the asset coverage is 965% as of 4/30/2025. So a somewhat meager yield, but one heck of a lot of safety. My buy was small but just trying to move forward with increasing portfolio yield (as compared to

It’s funny that I have bought this numerous times since February and all at prices close the same. Todays purchase was at $20.45–previous purchases were at $20.68, 20.98 and 2 buys at $20.50.

I have lots of buying to do in the week or two ahead as redemptions of shares and CDs have left me with a stack of cash–portfolios remain climbing, but with the cash I have I will need to be more active to move portfolio yields higher.

Time to Que Up Another Buy

Well interest rates are drifting lower with the 10 year treasury trading right around 4.25%–which if maintained through tomorrow would be the lowest close since mid March. Of course with the personal consumption expenditure (PCE) being released tomorrow things can change quick-BUT I am going to make an assumption that the numbers will be relatively tame.

So the slow drift lower in interest rates gives me a BIT more confidence that we may be on a path to lower rates—but still without a budget from congress I have questions—without a reasonable budget (and I am not even sure what that means anymore) rates could easily move higher.

So if I am going to buy another perpetual preferred, and I am (next week), I will have to stick to high quality. At least if I get stuck in it for a long period at least I know the company will be solvent. So I will be working off ‘Quality Issues‘ list and looking for at least a 6.50% current yield–so my pickings are slim really as I own most of the list already.

Additionally my buy will be modest—I would rather leg in to a position slowly over a couple months than get the absolute lowest price. If one has to pay a dime more in a few weeks so be it.

Portfolios are nicely green today and I am looking for a relatively nice bump higher on Monday as June 30 is the one of the biggest dividend/interest days of the year for my portfolio.

Added a Quality Perpetual Preferred to the Portfolio


As I noted in the last couple of days I have added a minor position in a perpetual preferred to the portfolio–it has been a while since I had the confidence to go in the direction of a perpetual.

After reviewing my various lists I opted to add shares of the RenaissanceRE Holdings LTD 5.75% perpetual preferred (RNR-F) at $21.20/share at a current yield of around 6.80%. Yield to maturity is huge if we assume a call today (it is currently redeemable). The issue is investment grade.

This continues–albeit at a very slow pace– my movement toward higher portfolio yields. Right now the 10 year treasury is trading at 4.31% and by buying a perpetual I am banking on the 10 year staying below 4.50%–if congress doesn’t find a way to reduce the budget deficit (and I know it is highly unlikely) the 4.50% upper bound might be a total dream. If necessary I can always back out of this position (or others like it). We’ll see.

Is ‘Saber Rattling’ Giving Investors Pause

I always like certainty–and of course we seldom have much of it–there is always something happening in the world that gives one a bit of hesitation.

Right now we are seeing that hesitation in the markets–no one is trying to move markets up or down much–although we ARE seeing a bit of a flight to safety in the 10 year treasury as the yield is now down 7 basis points and trading at 4.30%. We’ll have to see if this holds through the afternoon as we await the next ‘shoe to drop’ in the middle east.

Right now I continue to plan to make at least 1 buy this week–my pattern for the last couple of months, but I am awaiting news (I am always waiting on news–more data–more bombs or no bombs).

I will be buying from this list–whether I add to my Affiliated Managers position (I own the MGR 5.875% issue) or initiate a new position I don’t know yet—but 7% seems a bit too good to pass up–with potential for capital gains no matter what one buys (and if wrong about interest rates then capital losses).

Looking at Perpetuals and Longer Maturity Baby Bonds

I think the time has come—or maybe I’m just delusional—but I am looking at perpetual preferreds and longer-dated baby bonds for a buy next week.

After looking at all the data from the last number of weeks I have concluded that the Fed Funds rate will be cut 25 basis points in the next couple of months—AND that there is likely adequate demand out there (globally) for our government debt. We could well see a 25 basis point cut and then another pause for wait and see.

Employment, while near steady is weakening a bit over time–unemployment claims are rising. Inflation has remained steady to even a bit favorable in spite of the tariffs or tariff threats. GDP would appear likely to be in the green–how much as anyone’s guess (remember it was off -.2% in Q1). Housing is stalling out as units being built are starting to head lower. Seems like the economy is flat lining.

I have been moving into higher yields for the last few months from CDs and money markets–but only with term preferreds and short maturity baby bonds and plan to continue moving the portfolio yield higher—but now shifting to some quality perpetuals and longer dated quality baby bonds. We have numerous investment grade issues trading with current yields in the 7% area and that is what I am targeting for buys. I already own some of the issues in the table below, but may add to those or open a new position.

I have also been pondering adding to my CHS positions–I own the CHSCM and the CHSCN issues already and honestly am holding capital losses in both issues, but I have held these issues for years and total returns are positive. The biggest problem I have owning CHS now is we have no real clue how the company is performing and earnings won’t be out until the 2nd week in July.

So I will be shifting my direction—slowly–very slowly to adding some longer dated securities and positioning for some potential capital gains over the next 12 months.