I made a couple additions to the ‘hiding spots‘ list this morning and I moved 1 issue into a category of higher volatility.
I added the Gladstone Land 5% term preferred (LANDM) issue as it matures on 1/31/2026 and also the Newtek 5.50% baby bond (NEWTZ) which matures on 2/1/2026.
I also executed small buys on both of these issues just a few minutes ago. LANDM @ $24.60 and NEWTZ at $24.75. Both of these issues were ones I already owned. Both of these present a pretty good yield to maturity.
So once again what am I trying to accomplish? I am simply trying to move my income higher since I have a heavy load of money markets and CDs that are now in the 4.20% area. I am trying to do this in a manner that presents less risk to my capital. I do have many issues in the 7-8% area already–so my target for the year is 6%, BUT I would gladly take more if I can do it in a somewhat safe manner.
NEWTZ has been one of my bright spots lately, as a short seller borrowed 100 shares from one of my accounts last month, and I’m getting paid daily interest, currently at an annualized rate of 25%. Alas, they haven’t borrowed any of my more recent purchases.
Bid too low to get more LANDM today.
I do not have enough experience with the $100 preferreds that trade by CUSIP. I just started purchasing some last year. Their daily pricing is much more stable.
Now, when I look at the value of my Schwab accounts, they totally mispresent the market pricing. I opened up a FINRA account (no charge). https://www.finra.org/finra-data/fixed-income
They give the last date and time of any trades. Schwab provides that, but even that is not very accurate compared to Finra. These bonds do get traded after markets have closed, so I check after 6pm EST to get a real accurate last price traded.
Are others seeing more stable pricing of the $100 issues that trade via CUSIP only?
What I am trying to determine is the retail swings in the $25 mostly people dumping issues at any price or does this reflect the sentiment of those who are more institutional sellers. I can guess at the answer, but I am a guy who likes data to prove/disapprove my beliefs.
$100 issues are harder to trade but they also aren’t as wild they are mostly owned by institutional investors who buy&hold for the most part.
This is why I believe also. Looking to see if others are seeing in their holdings.
I would also think that part of the stability is due to most of these being priced externally by pricing services hired for the purpose… These services use pricing grids along with trade data that might be available in order to price these less visible items. They don’t always change dramatically even when the market does…. For example I owned PITNEY BOWES INC MTN CALL MAKE WHOLE 5.25000% 01/15/2037 that I recently sold…. Fido’s pricing service had not changed its stated valuation from approx 62.50 for nearly a month even though there were plenty of small trades and bids proving that it was worth at least 2 points higher throughout…. So the stability may also be influenced on pricing services grid approach to pricing rather than these being held institutionally. But I’m not complaining…. I’m seeing it in that Morgan STanley portfolio that I’ve mentioned before and I’m liking it right now……..
Since I still have more than half powder, I should feel like a mosquito at a nudist colony but instead I feel like a slug hiding under a rock that’s just had their rock lifted.
I’ve been slowly nibbling on down days but just the constant chaos is very wearing on the spirit. The knock on effects on the dollar and the risk to treasuries is turning my hair white.
I heard on major news media for the first time how “hyperinflation” for the U.S. consumer is possible due to the high China tariff.