Only last week the 10 year treasury popped into the .80% area–but as has been the case all year, there is no follow through on anything higher–pop and drift lower–pop and drift lower. Right now rates are at .70% which has been the settling point for weeks and weeks.
Common shares today fell on the open by around 300 Dow points–but now have clawed their way back as the eternal optimists believe in the almighty stimulus package to come bail them out–and they are likely correct–at some point prior to the election congress will decide to spend massive amounts of money. I can hardly wait to receive money I don’t need (sarcasm intended)–more money to salt away for a rainy day I guess. I would think that interest rates will again pop higher when/if a stimulus is announced.
I read kaptain lou’s Seeking Alpha piece and it motivated me to throw caution to the wind and buy some mid level quality preferreds yesterday (versu just investment grade). I bought a full position in UMH Properties (UMH-C) 6.75% perpetual, Monmouth Real Estate 6.125% (MNR-C) perpetual and finally I bought a full position of the RiverNorth Specialty Finance 5.875% term preferred (RMPL-P or RMPL.PR or RMPL- depending on your broker).
Nothing in common with the above different issues, but I am very familiar with the companies and thus comfortable holding them. Honestly after having a stellar September because damned near everything I owned paid their quarterly dividend I was hungry to add more fuel to the fire.
I did note today that the Compass Diversified (CODI) preferreds went ex-dividend yesterday and today they are off more than a buck from Tuesday–so they have fallen about twice their ex-dividend amount. Maybe an opportunity here. Note–CODI is a partnership so they do issues K-1’s.