I watched the downdraft in common stocks today and wondered to myself when the traders would run shares back higher—I waited all day and it didn’t happen–oh well I own no common shares of any sort right now so it wasn’t of consequence.
Reviewing the “Share Losses of All Preferreds” listings I don’t see anything except some of the “usual suspects” moving much are all–once again losses are more in the 10-25 cent range for the most part–not a big deal.
Looking at personal accounts there was nothing of note occurring–few pennies of gains–few pennies of losses.
I assume those that hold mostly preferred stocks and baby bonds experienced the same that I experienced–not much. Unfortunately this won’t continue–eventually the losses bleed into income issues–when this happens no one knows–could be next week–or it may be next year. No time to be a nervous nellie now.
We had noted that we bought the Ready Capital 6.50% baby bonds this morning and are happy with this purchase. Anytime I can find anything that looks reasonable in this interest rate environment I am happy. I keep studying the Preferred Stock of Closed End Fund page for something of quality to be available–I really love the “A” rated issues even though they will be susceptible to capital losses if we get a surprise interest rate shock. If you want a Gabelli closed end fund right now you are looking at a 5% current yield (more or less) or to get a decent current return one could buy the Gabelli Equity Trust 5.875% (NYSE:GAB-H) which is trading at $26.20. This issue became callable in 2008. In this environment why the hell is someone paying over $26 for an issue that will be called anytime now–to be replaced with an issue with a coupon likely in the 5% area.
Well we will all just wait and see what next week brings–I am fairly certain we will big moves in equities next week–but have no idea what we will see the income issue markets.