We have a plethora of Fed folks yakking this week–and while I haven’t checked out their speeches I think it safe to assume that most of them are pretty much in lockstep with their line on probably pushing out rate cuts into May. The 10 year treasury is now at 4.14% which is up 11 basis points.
Up until today interest rate moves have not been detrimental to preferreds and baby bonds – that has changed today as I see we have numerous issues off by 1% —i.e. the Jackson Financial 8% reset preferred (JXN-A) is down 1%–also the Spire 5.90 preferred (SR-A) is off 28 cents at $24.23. Losses across the board are generally not of large magnitude and considering the gains in recent months I don’t think these minor losses are of concern. If we were to get widespread 2% losses I think it would be a buying opportunity–not a selling opportunity. For me it would be minor buying until mid month when I get the CD maturity dates.
Bottom line is that we need a little wake up call on occasion that shares go both up and down – although recently it has been mostly higher.