Exuburance Turns Into Just a Moderately Positive Day

I was anxious to get this week kicked off–I wanted to see where markets would trade after the little bit of volatility last week. As of this moment things are just about perfect for someone who is most happy with quiet markets.

The S&P500 is up about 3/4% after being higher in the morning–that’s great–the smaller the move the better. The 10 year treasury is up less than a basis point–really I would think it would be somewhat higher.

Average prices on $25/share baby bond and preferreds have moved a couple pennies higher today–lead by the banks and investment grade issues.

A couple items folks are talking about today on the website.

Over in the Sandbox Citadel West has been wrestling with tax withholding for Puerto Rico securities. I follow a number of Puerto Rican issues on the website–and need to brushup on the withholding policies. Nomadicmist provides Citadel an answer from Oriental Finance (OFG) website relative to these issues. Popular (BPOP), Oriental Finance (OFG) and First Bancorp (FBP) are all Puerto Rican domiciled issues (although they have mainland U.S. operations in some cases). If you are pondering a buy of these issues make sure you check the withholding situation.

Woody asked about CTPPO in the Sock Drawer Discussion page–an old issue from Central Maine Power which is 6% coupon perpetual preferred. It is one of the $100 ‘illiquid’ issues that some here love to own. I did some research and found that as of 2005 there were just 5700 shares outstanding – maybe it is less now. I had originally had this as redeemable at $110/share, but my research shows that the issue is not callable at all. Google shows this has traded in a range of $102 to $250 per share this year–wow what a range–this is why you always use a limit order–you probably don’t want to be the person who pays $250.

Gary A made a mention on the Sandbox Page that the Farmland 6% Participating perpetual is flying today–likely because of China trade (or anticipated trade). He is right as it is trading at $25.99 which is a level that was last hit in December, 2017.

Lastly the Canadian Security discussion are is full of good information and discussion if you think you want to venture into a new area. Folks there know a lot are would be good resources to newer folks–honestly I would like to venture into some of those preferreds, but I haven’t had the time to ‘study up’ on them–one of these days.

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