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Dry Powder Replenished and Looking to Buy

Lots of dividends and interest hitting accounts this morning along with CD maturities hitting yesterday and throughout the month I am looking to buy. Certainly the low hanging fruit has been picked, but there remains bargains to be had–assuming one believes that interest rates are moving lower for the next 9 months or so. It is likely I will add to some of my current holding, add a mREIT preferred or two, potentially add a taste of an illiquid $50/$100/share issue and maybe even go ahead and invest a little bit back in a 3 month CD –not certain on this one. I want my dry powder put to work within a week, but don’t want to do a bunch of FOMO.

Yesterday was another stellar day for preferreds and baby bonds–gains of 1% or more were very common. Each day this week our portfolios have moved to all time highs–wish I had 100% preferreds (with the benefit of 20/20 hindsight) instead of 50%. We know one can’t time markets perfectly–additionally if we look back a few years we didn’t have tasty CD rates available as an option.

The 10 year treasury is around 3.81% this morning and no real economic news we may see some drifting. Equities are flattish to a little up–at some point this will set back, but there is so much money out there in money market and CDs that we could see an absolute ‘melt up’–maybe we are seeing it already?

20 thoughts on “Dry Powder Replenished and Looking to Buy”

  1. I’m talking my book here, but BANC-F is still yielding over 8.2% even though it’s run up quite a bit this week.

    We’ll know more in mid-January once they publish “clean” financials, but the PACW transaction is likely to have been a big winner. I think it’s only a matter of time before this gets pulled back to par (currently 23.50).

    1. I think this will be the only preferred stock held by them. I wonder what the odds of them calling it are at the first chance to do so?

      1. You are correct, this is BANC’s only outstanding preferred. First possible call is September 2027. After that it floats at the 5-year Treasury rate plus 4.82%.

        1. Apologies, I was sloppy with my wording here.

          BANC-F won’t *float* at 5y T + 4.82, it will *reset* to that figure and stay locked there for five years.

    2. I bought LBRDP and NI-B today, which may be a contrarian indicator.

      I do like BANC-F, but I’m having some sticker shock since I only paid $20 for PACWP. I was surprised to see that it’s HTB, although at a modest 12.5% interest rate. BANC is not.

    3. I loaded up too, at 21; the thesis that this issue would be valued as a safer credit after the merger has proven correct.

  2. Williams is already backtalking Powell on rate cuts saying they weren’t discussed..lol..here we go w FED speak. And this is why I invest in gold stocks. Fiat money in the hands of ‘experts.’.

    But the volatility is great thanx to the talking heads helping us get some goodies! While I am not in Trapping Values SA service anymore from his public writings I glean caution on this exuberance and agree mostly but I am ok like Tim locking in some goodies that just seem to keep popping up all the time in all areas.

    1. Remember a few years ago when I didn’t even know who these Fed big mouths were? Now they can’t shut up. They may think they are celebrities but they are just cutthroats begging for attention. Ignore them.

      1. I can’t help but wonder how much insider trading goes on amongst this crew and their nearest and dearest friends.

  3. FGN 7.95% trading over 25.80

    I should have watched it closer. It traded under par. When it Opened with FGN symbol…

    was around 25.25 all day.

  4. We know one can’t time markets perfectly…. That is precisely why you should be thrilled to own those CDs. Especially if you got long call protected ones. I have some now dreadful 4.5% ish ones to mature early next year, but they are in essence being switched IBond buys and gifting. So no real FOMO or reinvestment risk waiting for them to mature for me.

    1. Here we go with APOS. I just got an interest payment today.
      Thought it was March 2024. Anyway a nice surprise from a weird
      Preferred. I’ll take it. Anyone else get a present?

      1. King, I didn’t reply clear enough to you last time probably assuming you were just worried. But the prospectus said it would be paid Dec. 15. As you were worried prior before it was to be paid.

        1. Thanks Mr. Grid. I was surprised all right. I kept reading it would be next March. Bought 150 at $25.55. Still yields 7%. Bought FGN too which seems to have the same date. March 15.
          The fun continues…I think

          1. King, yes FGN will be paid out on March 15. The payment should have an extra week or so interest amount tacked on for the first payment, too

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