In an hour we finally get the announcement on the Fed Funds rate increase, but it will be 2 hours or so before we get all the news out–i.e. Jay’s presser.
This morning we had the ADP employment number come in very weak–for what it is worth 106,000 new jobs created versus a 190,000 forecast–obviously this is like throwing darts–anybody’s best guess. The ‘official bureau of labor statistics comes out Friday and there is a 187,00 new jobs forecast–we will see if the guessing (forecast) on this number is better than the ADP report.
The 10 year treasury is yield is off 5 basis points now to 3.47%–equities are off 1/2% to 1% in a very orderly sell off—I’m sure all the algo’s are ‘locked and loaded’ for 1 p.m. (central) and if the pattern is normal index’s will swing sharply both directions–all likely meaningless moves.
All my accounts are very flat today–I mean really flat. Not dooing anythings at all.
Anyone have an opinion on why Citicorp Cap XIII, paying some 10% is not being called
Maybe because it is considered Tier 1 Capital. Represents Citigroup Capital XIII trust preferred securities, which are permanently grandfathered as Tier 1 Capital under the U.S. Basel III rules.
Maybe because it is considered Tier 1 Capital. Represents Citigroup Capital XIII trust preferred securities, which are permanently grandfathered as Tier 1 Capital under the U.S. Basel III rules.
25% cash in my account. Putting it to work : Bought more 2040 CD cusip 32110YA54 . Most likely callable in 2 years 12/2024 YTW 4.85% , 5.1 YTM . Good for RMD . Paying interest Monthly , so probably close to compound 5% per year FDIC insured up to $250k per account
I been pulling up a lot of preferred’s this morning and looking at one month charts. Even some I trimmed back on all looking like a stairway going up. Everyone chasing yields. Maybe I have it wrong waiting for the escalator down?
Charles – I am with you, but just on 10-11% cash–at least you are paid while you wait. Nobody wanted a 5% qquality issue at $18, but everyone wants it at $23.
Tim:
The buyers can have all the PSA preferreds I have been selling with low 5% yields. I thought it might be years before I made any substantial gains on these positions but the aggressive January buyers gave me a late Christmas present.
My guess is there will be another day in the future where we can buy PSA preferreds with 6-7% yields again.