The 10 year treasury is drifting lower again today–now at 4.377%. We do have economic news today that could move the rate in either direct–in particular on the day before Thanksgiving in the U.S. when many traders are likely taking the day off.
Today I will likely do nothing—but I am studying 2 preferred issues for potential nibbles. Both issues follow my recent theme of higher yielding issues.
First is the new oddball (liquidation is $9.13) Energy Transfer 9.25% preferred (ET-I) non callable which is trading at $9.95 for a current yield of 8.48%. This issue is new and was issued in connection with the acquisition of Crestwood. Being that this issue is from an MLP this is K-1 generating.
The other is the preferred from holding company Steel Partners (another MLP) 6% cumulative preferred which is trading at $23.44 and has a mandatory redemption of 2/10/2026 for a yield to maturity of around 9%. Steel Partners (SPLP) has been a solid performer–holding many different company’s in many industries–a very well managed company.
Both of these ideas were stolen from others. Someone asked about the Energy Transfer issue on this site which set me off on a deep dive to find the details. The Steel Partners issue was written about by Preferred Stock Trader on Seeking Alpha.
PS–I have no problem getting ideas from others that fit my needs–to overlook them would be foolish.