I spite of some super attractive yields in even investment grade preferreds and baby bonds they can get no traction–at least to the upside. It seems that in spite of tons of liquidity folks simply would prefer to take a inferior yield to have the comfort of CDs and Treasuries.
Some in the comments in the past have referred to the ‘crowding out’–I think the treasury is going to crowd everyone out with their massive issuance of debt at rates that make the risk/reward for the nervous nellies seem mighty attractive.
I mean you can get over 6.5% on WR Berkley debt – to me one of the highest quality insurance company’s out there, but no one wants it. Folks simply do not want the duration risk of an instrument that matures 30 or 35 years in the future.
I understand everyone that chooses ‘safety’ – it has been much less painful to be in the shorter duration instruments than the perpetuals—if I had 100% allocated to perpetuals right now I would be mighty low–contrary to many here I fixate on capital balances instead of income streams–just can’t help it.