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Nibbling Round the Edges

As the wide swings have been occurring in all marketplaces–stocks and bonds I have just nibbled here and there–not getting carried away.

I bought a position in the new First Citizens Bancshares 5.375% preferred (now trading on the OTC Grey market under FCIZP) for $25.17.

I added a little more VEREIT 6.70% perpetual (VER-F). This is a quality issue–although unrated and the company has been slowly calling the issue, but there remains 30 million shares outstanding. Shares are trading around $25.20. It is a monthly payor.

Now I sit back a wait some more.

The Fed balance sheet grew in the last week–by a massive $82 billion. While I didn’t dig in deep I believe that around $50-$55 billion of this was in the overnight repo market while around $30 billion was in QE (quantatative easing–market operations by the Fed in outright purchase of bill, bonds and mortgages).

Of course we all know the 10 year treasury is now trading at .72%–this makes me sick, as our job as income investors has become more more risky–i.e. we have to deploy cash–no more money market earnings to speak of.

So we slide into the weekend again without having any clue as to what we will face next week–no prediction can be reliable.

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