We’ve had crazy down days and now crazy up days–who knows what tomorrow brings?
I purchased a starter position in the 6.75% CHS Reset preferred (CHSCM)–current yield of about 6.86%. I could have bought the 7.10% Reset Preferred (CHSCN), but wanted to lock in the coupon for the extra 6 months as I suspect we will see lower rates by 2024.
I tried to snag a few more shares of the Tri-Continental $2.50 $50 preferred (TY-P), but it has moved higher and likely my low ball order will not execute any time soon. This is one of the safest CEF perpetual preferred’s out there with a coverage ratio of 4400%–the yield is somewhat meager, but it goes to the ‘sock drawer’ for eternity.
So with the S&P500 up 2.70% at this moment and the 10 year treasury yield at 3.62% I am back to watching and waiting. My pure cash holding is relatively small right now, but I have plenty of ‘near cash’ in short term treasury’s if needed.