The 10 year treasury has now moved back up by 4 basis points to trade around 2.81% or so and in spite of this preferreds and baby bonds are up 5-8 cents/share as investors continue to search for the right level of pricing.
The Ashford Hospitality group of preferreds are up by 2%, while many of the Gabelli CEF preferreds are down by 2%.
Just watching the trading in the various preferred issues you can see that investors are trying to “position” themselves for whatever they believe is the future of interest rates.
Stocks have been in a wide range today and currently the DJIA is up 200 points. Who knows if the Dow will end up finishing higher or lower, but markets are calm.
In general the issues we own are flattish, except one that went ex-dividend today (Golar LNG Partners 8.75% preferred) by a fat 63 cents. The 3 initial positions in the High Yield Income Portfolio are all higher.
Put your seatbelts on for the afternoon–most certainly we will have lots of activity–we just hope it remains in an orderly fashion.