So stocks ‘partied on’ and interest rates spiked up to as high as 1.88% before settling a bit lower.
I though when I tallied the numbers today I might see a little give back in income issue prices–but NO. The average price of all preferreds and baby bonds moved 4 cents higher today.
The new MetLife 4.75% closed at $25.10–goes to show that investors are getting almost desperate to buy a little yield.
Even the Uhaul Investors Club has cut their short term coupon issue to 2.50% (2 year term). For the last year the 2 year term issues paid 3%.
For me I guess this all means that I am going to have to ‘reload’ on issues that are in the redemption period and are pegged to $25 because of the call risk. Right now it is the most reasonable place for my cash.