Plenty Quiet–Waiting for the ‘Big Show’

While today is pretty darned quiet–equities are up the tiniest of amounts right now (1/5%) and interest rates are up 2 basis points to 3.98% you can be certain starting at 9 a.m. (central tomorrow) that we will see much more action and movement. There is no way that Jay Powell can testify to congress for 2 days without some fireworks going off. Honestly if markets were flat for Tuesday and Wednesday I would be perfectly happy.

Overall preferreds and baby bonds are a tiny bit green–just like the equity markets–the tiniest of green. I think that Powell will have to put on a hawkish tone for congress–so I think that interest rates will head back over 4% tomorrow, but if you made any bets on what I ‘feel’ you would be a loser–typically prices move in the opposite direction to what I ‘feel’.

We had the new Jackson Financial (JXN) issue announced this morning and as usual we have some good comments on the issue–and thought on fixed-rate resets in the comments–it is great to see since we have so many really smart folks here–the comments make one think a bit deeper about the new issues. Thanks to all that comment and help make me and all readers smarter. Well let’s see where it prices–earlybird ponders 8.125% or so on the initial rate and 1 notch below investment grade.

3 thoughts on “Plenty Quiet–Waiting for the ‘Big Show’”

  1. I’ve raised a LOT of cash lately. I think the typically IG rated preferred looks overvalued in relation to treasury rates. I had a nice ride up and I felt taking some off the table was the right move here.

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