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Don’t Chase Issues–There is Some Dumping Going On

I have tried to do some buying on investment grade issues this week and until today had little luck. But now we are seeing some issues moving larger volumes which is giving one a chance.

I had a GTC order in on the 5.25% Ellsworth Growth and Income CEF preferred for a few days and it has executed on a ‘dump’. My price was $25.50. Just a small couple hundred as I already had a position and a better opportunity may arise–so reset a lower GTC order. This is a Moodys A1 issue–and in spite of the name is a Gabelli Fund.

I also bought a small position in Prospect Capital baby bond (PBB) 6.25% as it tumbled all the way to $25.02. This investment grade issue is callable NOW and matures in 2024.

For the really brave the lodging REIT preferreds are being pummeled and I see issues of quality companies like Pebblebrook (PEB) 6.375% perpetual (PEB-E) selling in the $23.xx area. And of course there are many more.

So buy small and keep a little money at the ready–who knows what tomorrow brings!!

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