All is good and kind of quiet in the interest rate markets today. The 10 year is hanging around 3% without significant movements–this is good–we always love calm.
Today we added more shares of Spark Energy 8.75% fixed-to-floating preferred to our personal holdings. Again the sellers are out in force which kind of mystifies us–but we have now averaged down to a cost of $24/share. The common shares have done well and the company has already declared dividends on the common and preferred for next quarter. Obviously we could be wrong, but we think we will be right–eventually, but in the end the market is the market and we won’t buy more to add to our position after this latest add. Sometimes stocks go down–there doesn’t have to be a good reason. In this case we think a few big seller knocked it down and now we have to work our way back up.
The average preferred and baby bond is up 1 cent today so really quiet.
There are a number of new issues starting to trade (mostly baby bonds) and we hope to review those tonight.