Whether it was a regional or community bank both common and preferred shares bounced nicely on Wednesday. Of course the market moved sharply higher on debt ceiling hope–and I suppose we will see equities bounce more as that issue is resolved and we can get back to searching for the ‘recession that never arrives’.
A few issues mentioned here early yesterday bounced sharply higher–before I got around to looking for a buy – but I did initiate 1 new position on the VLYPO 5.5% FTF preferred. I wanted to start a small position in a Zion Bancorp issue – either the FTF ZIONO 6.3% preferred or as suggested by Charles and Arbitrage Trader in comments, the ZIONL 6.95% baby bond, but both shot higher and got away from me–oh well more opportunity will come around soon I am sure. With holdings of 6-7 regional/community bankers I will begin to build the positions larger – maybe starting next week – FOMO (fear of missing out) is building.
I see equity futures are up a tiny amount this morning–maybe after yesterdays rally we will pause and look around. The 10 year treasury closed at 3.58% yesterday–so still no real movement in rates over the last week or two–this is bound to change pretty soon.
I will be out of the office a lot today and tomorrow so I won’t post Headlines of Interest tonight