The 10 year treasury yield is at 4.30% right now after the FOMC meeting notes showed more concern for ongoing inflation then markets were anticipating. These rates are knocking down preferreds and causing some pain. Personally I got a nice batch of dividend and interest payments on 8/15 which are being burned up by falling share prices–oh well not one damned thing I can do about that after the fact.
Talk about falling prices – after yesterdays news that Hawaiian Electric (HE) was talking with restructuring experts and other revelations I am quite convinced the company will suspend all dividends (common and preferred) if for no other reason to address the pubic relations disaster the company has on their hands. Can you imagine the headlines – “Fat Cats Get Dividends While Folks are Homeless” if they pay dividends. The Maui situation is absolutely horrendous – unimaginable pain and suffering and if the company has any negligence they will pay dearly.
Yesterday we had Apollo Global price their new fixed-rate resettable baby bonds with a coupon of 7.625%. Seems pretty tasty for a A3 rated issue. At this point I won’t buy any of this one, but I will consider it if rates move higher knocking the price down from $25. I do own a small amount of the AAM-A preferred which is being redeemed by Apollo.
I had mentioned the Nisource 6.50% preferred (NI-B) a day or two ago – I added a few more shares of this utility yesterday at $24.70. If I buy more of this one it would need to tumble to $24.25–I have enough for now.
So for today we are awaiting the jobless claims numbers – soft would be nice – 240,000 is forecast. Then at 9 a.m. (central) we have leading economic indicators being announced – this is forecast as minus .4%.
Well lets go and see where the markets take us today.