I had a chunk of money in a Gabelli money market fund for a good share of this year and with buying cash in short supply I have put in a sell order for the end of day today.
I am looking back to the mid sized regional/community bankers to buy in the next few days. I am going to add to a current position in Customers Bancorp FTF (CUBI-F) which is now floating–I already owned it and added a little today at $25/share (utiltized the last of my cash in that account). The issue went ex dividend today and is next redeemable on the next dividend payment date (3/15/2023). Current dividend is at a yield of around 8.2%.
I am also looking at others including the Valley National 5.50% fixed to floating (VLYPO) which has just converted to a floating rate effective 10/01/2022. This will be inferior to the CUBI floaters in yield terms–but I need some diversification. The December dividend is around the rate of 7.3% and all things being equal more in March. Of course this issue is now redeemable, but only on a dividend payment date.
Equity markets have been quiet today–the 10 year treasury moved up by 5 basis points. While I would prefer ‘flat’ in interest rates, plus or minus 3,4 or 5 basis points is not harmful to our investments—remember speed kills (i.e. 10 or 15 basis point moves).