Of course today all equity markets are closed–although the futures markets were open until 8:30 (central time) but didn’t show much movement. Interest rates and stock prices are totally joined at the hip right now so one can’t expect much movement without all markets being open.
Tomorrow we get an extremely important jobs number–with 155,000 new jobs being forecast for December with the unemployment rate pegged to be unchanged at 4.2%. Obviously a super soft number could help bring don interest rates while something hot is going to send rates up toward 5%.
I am now starting to put together a list of potential buys of perpetual preferreds–I have no intention of buying any for now, but I want to be prepared. The perpetuals that I pared back a few months ago are trading 4-10% below my sale price–for instance the Affiliated Managers 5.875% baby bond (MGR) is now at $22.40 and I had sold part of my position at $24.92 and it is likely I will move back into more shares at some point in time. We’ll see.
Heavy weather sailor here……
Blowout jobs report is just the first gust for the possible oncoming interest rate storm.
Be slow on buying “bargain” perpetual and long dated fixed interest rate securities.
this one seems quite superior:
Argo Group US, 6.50% Senior Notes due 9/15/2042
Current price $22
YTM 8.18%
S&P Rating A-
FWIW – QOL shows S&P as BBB-
https://quantumonline.com/search.cfm?tickersymbol=ARGD&sopt=symbol
QOL has it right. free registration at standardandpoors.com will confirm it.
2WR, tell me if I’m wrong. Brookfield bought ARGO
https://www.quantumonline.com/search.cfm
These are from FINRA
040157AA7
04015LAA6
040158AA5
04015RAA3
Same company? If so then it looks like Brookfield loaded them up with debt to buy them out.
But then, I may have no idea what I am talking about.
https://news.ambest.com/PR/PressContent.aspx?altsrc=3&RefNum=34641&URatingId=-1
A- of its operating subsidiaries and this bond is related to a subsidiaries
Anyway it’s far superior in any case.
best rating
best yield
lower duration
I’ve owned this for years. ARGO was bought by Brookfield.