Equities are barely moving today and the 10 year treasury is lower by a mere 3 basis points at 4.28% as markets await the release tomorrow of the personal consumption expenditures (PCE) inflation data. Today we had economic data which showed some economic slowing–in particular in the housing markets with pending house sales down sharper than forecast. Tomorrow we could see giant sized moves in interest rates when the PCE is released.
Today I bought a part position in the Aspen Insurance 5.625% perpetual preferred (AHL-E) with a current yield right around 7.17%. I paid $19.65 for the shares. While the shares are redeemable starting in October the odds of a call are remote and if it did happen the capital gain would be super. AHL has a fixed to floating rate issue outstanding which now has a fixed rate of 9.59% (AHL-C) which is trading at a silly levels ($26.23) which could be called any minute.
Well is that why I can’t fill AHL-E at my stinky price of $19.49? Ha ha
I usually know I am on to something when I buy something and in a day or two “Eagle Eye” McPartland is posting it on III.