Putting This Day to Rest

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.

4 thoughts on “Putting This Day to Rest”

  1. In addition to Callable Now also may consider the Callable Soon issues. Buy now and sell before call is announced you may do better than the YTC rates.

    1. Randy–no such updated list exists–but I published one similar to that (but only covered investment grade) a couple months ago–let me see if I can find it and get it to you.

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