19 thoughts on “NY FED Statement on Liquidity.”

  1. In looking just now after the close at my portfolio plus my watch list its like walking thru the aftermath of a very large tornado. Seriously, there are so many bargains out there from blue chip companies. Not only in the preferred arena but just in general in the stock market as well. For you “Youngins” out there this is the time to load up on those blue chips. Especially for anyone that has a real long term time horizon.

    1. I hear ya, Chuck. I thought getting Disney near $103 would be a steal. Good thing I canceled my order. Same for Walmart and Apple. Chose instead to stick with the ridiculously low priced preferred’s out there today like WFC-Q, BK-C, IPLDP and the like.

      Biggest question to me is, what the hell stops the blood from getting chest high? I was watching CNBC at lunchtime and when the Fed announcement came out, boom! 800 points got shaved off of the loss. Then, I guess the MLB news came out or something did and tacked back on that 800 plus a few more points down.

  2. To many people running for the exits and getting run over by money hungry robots. Lots of blood and gore. I picked up a little VLYPP $20.92 and NRUC $24 at close. Done for now. I mean it.

  3. Anybody have any clue why muni’s are selling off so severely? MUB and TFI down 5% today.

    Of everything selling off, this one and GLD has me the most puzzled

    1. Steve
      I’m not a professional but Munies hold value well . If someone needed cash they might sell issues which were down the least and do Munies. In the end this could mean that Munies have a big decline but it is based n market needs. This in itself makes one feel that owning cefs are a better idea than open ended funds as the open ended funds have to sell assets to redeem shares which cefs do not have to do. Just my thoughts. sc
      If one is into munies look at PML, PNI and perhaps NVG each of which is down big . The two Pimcos are selling below nav which has not happened for quite a while. Will they go lower- perhaps. Hard to call at this time. Just my take. sc

    2. Fidelity allows me to see the intraday NAV. MUB NAV at 3:20pm is $112.18.
      Market price is $107.98, so the discount to NAV is 3.75%.

      Could be an opportunity to watch.

      30 day rolling average premium/discount is -0.04%

      1. Steve,
        Some talking head on CNBC said today that muni’s are being sold by the banks in order to raise capital to make new loans. No idea if that’s the case, but that’s what I heard.

        1. Makes sense, my muni mutual fund dropped -1.7% last night. Moving it all to cash tonight (while I hopefully still have my capital gain). Not buying much but this was my cash substitute – so time to move it to “real cash” before it moves into the red (still have my interest gains).

          The loss in PFF is stunning. Has been worse than the DOW almost all-day long. Not sure, if it’s NAV but for my preferred portfolio it’s the same percentage drop.

          1. Insane, lost 5.3% in muni bonds the last 2 days. Today alone was 3.6% (that’s at NAV).

            I owned them for 11 months (did not want to sell them).

            This was my primary cash holding tank. Got out with a small capital loss and a tax free dividend gain of 2.5%. So it worked for what I wanted it to – cash substitute but this is clearly an insane drop. So glad, I cashed out today.

            At 40.5% real hard cash.

    3. It’s the lack of liquidity. Anything that can be sold is being sold. Treasuries AND stocks in all sectors going down, gold a supposedely safe haven going down. The system is frozen or close to it. The Fed, Treasury and policy makers have epically failed.

  4. CNBC (which I’m addicted to) just had a guy on from the FED and he said they will be going to either zero or even a -25 basis points at some point in the near future. No Iam not making this up, thats what he said. I would also add just this, if there is something that you’ve had your eyes on you better go ahead and buy it because as far as any new issues I think you can forget it and also any new issues will have horrible coupons anyway. Between today and yesterday I have bought I think 5 or 6 things and sold 4. I decided to get rid of what I call my “Weak Knee Sisters”. Companies that have the “Potential” to maybe not make it thru this Storm.

    1. Lol…some guy on CNBC also just said the Federal government should stop collecting taxes and just print money. Free advice is worth exactly what you pay for it.

      1. Well, I wouldn’t trust “some guy” on CNBC (or other similar sources), especially if he says to print money. But I most certainly do appreciate the free knowledge/advice shared on this site by Tim and others!

  5. The insurance preferreds are taking big losses today.

    Not sure why since most policies don’t cover losses resulting from pandemics.

    1. They might cover it if the decedent can’t be confirmed because of a lack of test kits…..
      every actuarial table in existence is going to be thrown out in the next 2-3 months. You name it.
      Life expectancy, car accidents, business interruptions etc.

    2. Insurance companies are the biggest holders of liabilities in the world. They cannot make money and provide the guaranteed interest credits on their whole life blocks of business. The entire insurance market is starting to teeter. The healthiest have investment subsidiaries.

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