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It Was An Odd Day Yesterday

Yesterday was a strange day in the markets as preferreds and baby bonds were up for the 5th day in a row—although only by 1/10%.

Interest rates shot higher yesterday by 10 basis points, but income issues which typically would react negatively to higher rates– but as I noted in the Monday Morning Kickoff there is good demand for income ‘bargains’ after the December selloff and these buyers may well be ‘stronger’ owners than owners late last year. Interest rates are down about 4 basis points this morning at 3.59%.

mREIT Redwood Trust (RWT) finally priced their new fixed-rate-reset last night. The issue prices with a sky high initial fixed rate of 10%—WOW. I won’t be looking at this one for myself–I guess if one is into high risk this might fit–won’t for me.

I see nationwide flights are down–what a mess–all I can say is that I am glad to not be flying today as my patience for these things is minimal—regardless of the cause.

Economic news is non existent today–so we will be looking forward to CPI tomorrow at 7:30 a.m. (central).

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