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Keep The Bond Market Closed a Few More Days (just kidding)

I had low expectations for income issues today after the crazy rally yesterday–but my expectations have been far exceeded.

With the bond market closed for the Veterans Day holiday observation preferreds and baby bonds have kept the party going–I’m up about 1/2% and my spreadsheets are pretty darned green.

Of course the last 2 days have given me gains in my junky issues–in particular Prospect Capital 5.35% perpetual (PSEC-A)–a real dog, but at least nice gains the last 2 days. Their earnings were released and probably not bad as the nervous nellies had imagined they would be (in fact they were decent). Also Liberty Broadband 7% preferred (LBRDP) bounced nicely as they had stellar earnings (of course bolstered by sales of Charter Communications shares which they sell most quarters—and they have a very low cost basis).

Today we had the U of Michigan Consumer Sentiment released and it came in soft–a reading of 54.7 versus a forecast of 59.5. Next week we have the producer price index coming on Tuesday–likely to be uneventful–but honestly who the hell knows.

Hope everyone had a profitable week–whether income issues or common stock. Rest up on the weekend and get ready for some likely wild action on Monday and Tuesday as we get to see where the bond markets want to take us.

6 thoughts on “Keep The Bond Market Closed a Few More Days (just kidding)”

  1. posting here only to get on top and get a response, when does “usb-h” start to float, my crude math says its trading way to low based on libor

    1. Mike – you’ve been around here for awhile, haven’t you? I bet you know how to find this out without asking…. The prospectus can be found on this site and also at quantumonline…. It’s been floating since issuance in 2006 as far as I can tell… and the prospectus will tell you the exact date it’s set every quarter as well as the terms. Don’t mean to sound snarky if I do……

      1. Guess I should rephrase my inquiry well aware of all the mumbo jumbo in prospectus about llbor determination date. Just thought with all the experts here someone would be tracking all the floaters,effective yields. Held for awhile “actually traded above par last year” with rates in the toilet. My crude est., the nominal effective yield is around 6.5% @ $ 20.00? Yes been around a while I’ve learned how to pick brain, of all the good folks. here Thanks including “2WR”

        1. Mike- Isn’t it weird that there doesn’t seem to be a website that you can go to that actually actually tracks the current rate for all these floaters? I could get behind that too….. Fidelity seems to do a pretty good job in a hidden sort of way one issue at a time way but as far as I know no site tracks them all… I’d also think that the number of outstanding actively floating rate issues is only going to increase over time so there would only be increasing demand for a site like that…. Oh well…

  2. Tim.. Thank you .. for the support.. Now equity rising,from all the good buys. $2-7 below PAR . Have a nice weekend. Ty. Georges

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