After watching income issues rise day after day we noticed the general rise has now come to an end. It was nice getting the big ‘bump’ in January and then getting another 1/10% per day through most of the 1st week in February–but all things have to come to an end.
Today we are seeing common stocks tumble with the DJIA down 300 points most of the day–and interest rates following the DJIA down. The 10 year treasury is trading down in the 2.66% area, which is down 4 basis points.
The average preferred stock today is down 10 cents. Those down the sharpest are the usual suspects–as they gyrate around–some of the AmTrust Financial preferreds, Maiden Holdings, and now joining these 2 insurance companies is affiliate National General Holdings preferreds. Additionally the Tsakos Energy Navigation preferreds are off 75 cents or so. Large preferred share price losers can be seen here.
There are only a few issues with really high volume today and they include 1 AmTrust issue and the National General Holdings preferreds. Lawsuits are starting to fly relative to the AmTrust Financial delisting and we would expect that as long as the issues continue trading they will rise and fall on heavy volume with each court hearing and ruling. There is probably real opportunity here for the speculator–this probably doesn’t include us.
The new preferred issue from Cherry Hill Mortgage (NASDAQ:CHMI) is trading on the OTC market and there is no surprise here–it is trading around $24.84. Maybe there will be a few nickels and dimes to be made by flippers on the issue–but nothing to be too excited about.