With rates popping even higher than earlier (now at 3.16%) today a huge number of the preferred issues outstanding are getting hammered down 1% to as much as 4%. We haven’t seen this much red for quite a few months.
We had noted that we watch the smackdown here–where we have all $25 preferreds with real time sorting of losses (and gains). The list has been dominated by quality issues for the last week or so (or by the hated AmTrust Financial and Maiden Holdings issues)–but right now it has all sorts of issues down fairly hard.
At this point we wouldn’t call this a buying point–no doubt there will be quite a few losses yet this year–but a key factor will be the employment report this Friday and the wage component–we shall watch.