Hasta La Vista Baby! Out They Go

I hope everyone got in the new issues from Textainer Group Holdings 7% reset preferred (TGH-A) and KKR Real Estate Finance 6.50% perpetual (KREF-A)–I am pretty certain that there are a lot of holders (or maybe previous holders) of these new issues on the website.

I held full positions of these issues and now have gotten out in total–over the last couple of days. Honestly I don’t see anything wrong with holding these, but they are not typical ones I would hold long term–I tend toward higher quality–so out they go.

Picking up 4% gains in a couple of weeks helps me to maintain my goal performance–I continue to look for 6-7% annually year after year. Sometimes you make it easily and sometimes you don’t, but in general I have been very pleased over the last few years. Of course the never ending ‘redemptions’ are a real pain in my backside, but thus far with added flipping and captures monthly gains have been great (my definition of course which is more modest than than what some of you define as great). Any month I can get a 1% gain I am ecstatic.

Right now I am anxious to hear the Fed Chair tomorrow with a presser after the monthly FOMC meeting. There is ZERO chance that they will do anything with interest rates. They will continue their view that any inflation is ‘transitory’ (temporary). I believe they will leave asset purchases by the Fed at $120 billion/month. I do want to see if Powell ‘sets the table’ for future changes in their wording of statements. He has made so many ‘promises’ in the past that at some point he needs to cut back on working that implies low rates forever.

2 thoughts on “Hasta La Vista Baby! Out They Go”

  1. I don’t see how they can ever raise rates anywhere north of 2% without bankrupting the world. Nobody would borrow at rates that high.

    1. I guess it depends on your viewpoint. I bought my first home in 1983 with 20% down and 12.25% mortgage which I refinanced 2 yrs later to 8.25% of course my dad a Korea vet thought I was crazy.
      Then again it was only 81,500 for a 1yr old home the builder had to rent as he couldn’t sell it new.

Leave a Reply

Your email address will not be published. Required fields are marked *