Continued Quiet Trading in Preferreds and Baby Bonds

As we do on most days we just reviewed the “preferred stocks at near new lows” and “preferred stocks by share price loss” lists and both show that the day is pretty quiet in the income arena, although the average share has crept up around a dime.

We are more intrigued by other miscellaneous trading that is occurring in some areas we invest in. For instance, the IHIT and IHTA issues, Invesco 2023 Target Term Trusts and Invesco 2024 Target Term Trust) have been trading really strong and I know that many readers and ourselves have owned positions in these closed end funds (CEFS). We have just let go of most of our position in the IHTA issue (Invesco 2024 Target Term Trust)–we had paid $9.39 for this on 11/29 and being able to sell for almost a 35 cent profit seems reasonable given the spike in price in the last couple of days. It seems to us that many relatively conservative investments have risen too much in the last few weeks. Seems to be another free for all for yield since the FED has given the green light to a yield chase. The IHTA spike follows the silly spike sister fund IHIT had a couple week ago all the way to near $10.50.

Oh well we will happily book a gain here or there–not to be a trader, but just being opportunistic.

3 thoughts on “Continued Quiet Trading in Preferreds and Baby Bonds”

  1. Very quiet indeed. Two trades in the last month, versus closer to 2 per hour in mid to late December.

    Waiting patiently for the next sale.

  2. I think part of the reason is perhaps the previous weeks article in Barron’s highlighting term CEFs as attractive and recommend buying them

    1. Hi George–you might be right. Like everything in these markets investor go over board either to the downside or the upside.

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