Yesterday the 10 year treasury yield rose by 10 basis points from the close last Friday to 3.58% and once again this morning yield is up by 8 basis points to 3.66% This is a significant move if it holds, but of course who knows where we end. Preferreds and baby bonds were off a little yesterday as you would expect, but losses were modest–maybe 1/2%–although that is more than enough.
We just have some housing economic news today with building permits and housing starts on tap shortly–obviously they are expected to be soft, the question is how soft? We’ll know in 10 minutes.
Yesterday I sold some Priority Income Fund 6.625% term preferred (PRIF-F). I had to sell something to redeploy into some other issues. I continue to hold some of the PRIF issue, but had very little cash available and this was my best option as I am diversifying holdings even further. I have holdings of over 50 issues.
I noticed yesterday that the Vornado Realty (VNO) preferreds have really gotten hammered recently. These issues used to be favorites of mine, but I have held any in recent years. Obviously office properties in New York are totally out of favor. The VNO-L 5.40% perpetual is trading at $16.25 for a 8.3% current yield. At the right price these become interesting–but I need to look closer at their financials and see how bad they are before even thinking seriously about a taste of these shares.