The last 2 weeks I have done very little as to buying and selling in our portfolios–although I continue to have some good til cancelled ‘buy’ orders in place, but no one has ‘given’ me shares recently, of course my offer is a wholesale price while sellers want retail.
I believe the last item I purchased was a 5.6% 1 year callable CD that JPMorgan was offering–now that rate has gone away and I see 5.50% available on Fido and 5.55% on eTrade. I’ll keep watching since almost every month there are maturities of treasuries and CDs, but I need to continue to scrutinize short dated maturity baby bonds from BDCs and that seems to be the best way to balance my CDs with high yield.
Just sitting back and collecting dividends and interest is most certainly a low stress way of investing – this is what we could only dream of a few years ago. I am certain that many investors out there are locking down 1 year, 2 year and 5 year rates and simply are content to watch the money come in—but we all know there is ‘reinvestment risk’ when those instruments mature–so the question is locking down 5% now for a few years in a CD versus taking more risk in an 8% BDC short maturity baby bond. Of course there is no right or wrong answer–everyone of us has needs and everyone is different.
So I see that Enbridge announced a giant acquisition of gas utilities from Dominion Energy. This may motivate me to look at the securities that Enbridge has outstanding (including their common shares)–maybe there is decent potential.
Today we have the ‘beige book’ being released at 1 pm (central)–we could well see some fireworks from this release.
Interest rates have popped back up and are at 4.25% area (10 year treasury)– we will see if this moves to challenge recent highs in the 4.36% area–a move above this level will open up potential moves higher.