I worry–sometimes way too much about things that never come to pass–in this case the regional and community bankers. I have mentioned this numerous times – in spite of decent earnings from most of the bankers there are ‘surprises’ waiting out there. I guess the New York Community Bank (NYCB) situation was one of them–but there are more of them to come. This is one of those situations that one can’t find out where the issues are, but know they are out there. Anyway I decided to exit my last little bits of banker securities–then I can wait and see if something develops that hammers banker issues lower creating true bargains.
So I sold the last tranche of my Bridgewater Bancshares 5.875% preferred (BWBBP) at $ 19.10 – about a 20% gain which includes a dividend or two. I also sold small positions in Customers Bancorp–the 6% fixed to floating rate preferred issue (CUBI-F) and the 5.375% baby bond (CUBB). The Customers Bancorp holdings were sold at essentially a breakeven–I collected the coupon along the way–no capital gains.
So once again today we have little economic news to drive markets, although I always like to see 1st time unemployment claims. We also have Wholesale Inventories released–not likely to move markets. The 10 year treasury is still trading in the 4.14% area where it will likely remain until next week when we get market moving data–the consumer price index (CPI) and the producer price index (PPI). Whether rates get shoved above 4.2% or below 3.8% no one knows–maybe rates stay in this range out until May which would suit me fine.
$25/share preferreds and baby bonds continue with little movement—up a little and down a little. We have grown accustomed to daily capital gains–those days are gone until we see Fed Funds rate cuts and then only if long term rates follow short rates lower.
Looks like a quiet equity day with futures +/- .1%. Let’s get to going and see if markets move more than I think they will.