Preferreds and Baby Bonds are Red Everywhere

As Landlord Investor noted in the comment section preferreds and baby bonds were pretty red today.

I personally am not aware why we would be seeing red so widely–except for the fact that every damned issue is overvalued (when has that mattered?).

Today we saw investment grade issues off 14 cents, banks off 15 cents and overall we saw a fall of 13 cents. The big losers were shippers which were off 30 cents (not on the chart below).

Maybe we will see a buying opportunity?

10 thoughts on “Preferreds and Baby Bonds are Red Everywhere”

  1. Most of the drop was at the close, which is usually just algorithms going crazy. Nothing to see here. Though there was a milder dop throughout the afternoon.

  2. For the first time I saw CNBC TV spotlight preferreds on their youtube channel for their Yield Hunting segment.

    I still think plenty more new investors would be interested in preferreds if they knew more.

  3. Stocks go up, bonds go down. And it matters greatly who gets nominated. More T may mean higher stocks. SO anticipation of that may be pushing against bonds. Cause if he does stay in they’ve already called for more tax cuts. Then you had fed comment on rates, enough to spook many. AND chinese corona worries are another concern…. Any whiff it may slow could also push rates up.

    1. Oh, what to do, what to do?

      ET & SUN dist hit my accts today. Bought more MLPA & EPD. I believe they will pay me. That’s all I ask.

      JMO

  4. All my corporate bonds seem pricey as well, but if treasuries aren’t headed above 2%, then what would make preferreds dive? I don’t see a reason to yet to rush for the door.

  5. By the way, a belated thanks for sending out the alert on 1-23 re the drop in Costamare preferreds, as my attention was elsewhere. As a result, I was able to land some -D under $25 – decent enough for now.

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