Hanging On and Adding A Little

Well there is no wholesale ‘tossing out the baby with the bath water’ today in preferreds and baby bonds as I thought there might be, but prices eroded and I gave back all of the gains from the last few days–oh well I am focused long term.

I added some of the Spire 5.90% (SR-A) and then dipped in for a little bit of the Hennessy Advisors 4.875% notes (HNNAZ) which is off a whole 95 cents today–current yield over 5% and better yet the issue matures in 2026 for a yield to maturity of 6ish%.

The S&P500 just ground lower and lower today–each tiny bounce was met with more selling – I guess the only thing that was good (if there is such a thing) is the selloff was fairly orderly after the first hour. Just like interest rate movements we don’t need drops of this magnitude (4%)–we don’t need panic in any market. We’ll see what happens on the close.

8 thoughts on “Hanging On and Adding A Little”

  1. Not all that bad for preferreds/babys/terms today. OTOH, commons were hammered.

    Median preferred was ONLY down -0.42%. Babys/terms were down -0.18%.

    58 preferreds traded within 1% of their 2022 lows.

    AGCGL, BFS-D, BIP-B, BPOPO, CIO-A
    CLDT-A, CMRE-C, CMRE-E, CMS-C, CNLPM
    CNLTN, DLR-J, DUK-A, EBBGF, EPR-C
    EPR-E, EPR-G, EQH-C, FHN-B, GLU-B
    GMRE-A, GOODO, KIM-L, KREF-A, METCL
    MET-F, MITT-B, NI-B, NMK-B, PACWP
    PSA-F, PSA-K, PSA-N, PSA-O, PSA-P
    PSA-Q, PSA-S, PSB-X, PSB-Y, PSB-Z
    PW-A, REXR-B, REXR-C, RITM-C, RITM-D
    RNR-F, SB-C, SCE-K, SIGIP, SLG-I
    SOCGM, STAR-D, TEUCF, TRTX-C, WFC-R
    WTFCP, XOMAP, ZIONO

    37 babys/terms

    AFGC, AIC, AIZN, ATLCL, CMSA
    CMSD, CNO-A, DDT, DHCNI, DTG
    DUKB, EAI, ENBA, F-B, GEGGL
    GJH, HNNAZ, KTBA, MGR, MHLA
    NEE-N, NEWTL, NEWTZ, OXLCN, OXSQG
    PBI-B, PRH, RILYK, RMPL-, RWAYL
    SCCG, TANNL, TBB, TBC, TRINL
    TVC, TVE

  2. I bought more CUBI-Fand a couple ithers pinned to par. Nit or the dvvy as much as bevause I don’t think they can go down much. Which is more than I can say for everything else.
    Not buying any under 6+% they could drop if that ends up being a low rate in the near future.

  3. I bought more CUBI-F and a couple other floaters pinned to par. Not for the dvvy as much as because I don’t think they can go down much. Which is more than I can say for everything else.
    Not buying utes at “only” 6% they could drop if that ends up being a low rate in the near future.

    1. I dont blame you Martin, and in fact I would join you if I didnt already own if not exceed my personal limit there. I have a same full limit of RZA mostly for same reason you just cited.

      1. I don’t know the odds of a call nor do I consider it a risk. A December call would be a short term gain of 6% apy. I might prefer a non-call but either way I’m ok with it. Only risk is if something goes wrong and it tanks,

  4. Some utes paying over 6% does sound pretty darn good. But I do recall a post from other folks saying if a CEF pays significantly more keep those in mind as they are mighty safe as well. Maybe not QDI but if they pay a lot more it can come out as a wash.

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