Well we have the FOMC meeting wrapping up today and NASDAQ has already started the party early–the futures are up 1.5% in that index. The S&P500 is up a full 1%. Of course today we have the FOMC announcement and the the Jay Powell press conference–there is no doubt some anticipation of the ‘set up’—a dovish tone to the press conference setting the tone for a September rate cut.
Yesterday was a quite day in our portfolios with almost no movement, but today will see a fair stream of dividends hit the accounts which always feels good–given the lack of share price movement during the last month we could use a bump higher.
The 10 year treasury yield is trading around 4.14% after falling 5-6 basis points yesterday–it will be interesting to see if we can move lower to test the 4% level with ADP employment being announced today and the official government number being released on Friday. Yesterday JOLTs (job openings and labor turnover) was announced down from a month ago, but slightly above forecast.
I am pondering buying more of the Brighthouse Financial (BHF) preferreds–they are all trading with current yields around 7%. I have a position in 1 issue already and would likely just add more shares–but will need to study issues a bit more and see if I hold the best issue.
Well let’s get the day rolling and see if the early party continues!!
Tim – FYI, I posted to Sandbox but the message doesn’t seem to get posted to the site.
I had BHF preferreds prior to going into the BHF BB.
BHFAO
bot $21.90 12.22.23
sld $23.53 6.17.24
I have been selling like a madman into the froth lately. I have had a bond bias for quite some time gradually reducing pfds. I took the proceeds and bot the BB.
BHFAL
bot $21.80 6.17.24
It closed at $22.80 @ FIDO.
If one was patient, it could easily get close to $21.80 in the short term. Price swings have been fun to trade on the long end where volatility is highest.
IMHO almost everything that is “safe” and easy pickens is priced for perfection now. Easier to maybe do more flips especially with juicier IPOs? Even if you don’t do flips, there has been a nice steady stream of new issues with some attractive rates.
PS I looked into the way back machine and found 2 BHFAM trades in 2023.
bot $16.638
sld $19.589
This was two trades buying in the in mid to high $16s and selling high $18s and hi $19s per share.
Hold time on both 1 month! ha ha
Got a full load of BHFAP that I have accumulated at avg price of $22.8135. About 7.35% YOC. Not complaining and just going to let them ride.
I have had a small position in BHFAN since late 2022, and have been disappointed in its performance. It does have a nice yield, but minimal capital gains in a favorable rate environment. If it does not respond well to the first cut from the Fed (which I know is not a certainty), I will probably sell it.
Tim, I hold one of the lower yielding BHF with 2 thoughts on it. If it ever gets called I get a nice capitol gain, or since it’s so low a coupon it never gets called and I enjoy the 7-1/2% yield to cost for a long time. Up almost 8% since I bought plus 1 dividend.
The one issue I have is BHF is not paying me much on an inherited account so I have been pulling money out and moving it to my IRA doesn’t say much about my trust of BHF I guess