For now, at least, the average preferred stock and baby bond has disconnected from the DJIA with the average share up a few pennies–and some like the hated Spark Energy are up over a dollar.
Certainly we don’t ever argue with an up day, but yesterday being up over 1% was just too good to be true.
Today we will be trying to buy some of the Brookfield Property REIT 6.375% perpetual (NASDAQ:BPRAP)–a small starter position. The current yield is around 7.20%.
While we did not originally plan to sell any of our term preferreds we did let go of some of the Gladstone Investment 6.375% (NASDAQ:GAINL) term preferreds. This was simply a ‘rebalancing’ sale. As we noted earlier in the week we were way overloaded in some issues and we had over 1000 shares of this one. We like this issue, but need to spread the risk a bit more.