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Rates Drift Lower as Investors Look For Stimulus

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.

16 thoughts on “Rates Drift Lower as Investors Look For Stimulus”

  1. Hello Tim, just want to clarify that previous poster, D, ain’t me. I am longtime reader D, may have to start commenting as D-1 or something . . . maybe start calling myself Mr Liberal or such. Anyway, still check in almost every day, really appreciate the great information and wide ranging commentary.

    1. ok–I thought it was you. May have to have everyone sign up for posting or something. I have the commenting credentials wide open since we have had little trouble. If I want to look close I can see you have a different IP than the other D.

        1. Thanks D–and many times I can identify writers without even knowing their ‘handle’.

  2. Ticker for RiverNorth on TD Ameritrade is RMPL- — no character after the hyphen. Looks like an interesting option, though it is about ready to hit 1st Call Date in a few weeks.

    1. Dave–it trades under various ticker–I’ll add some more–it is a lousy CEF but as long as the coverage ratio is reasonable I like the coupon.

    1. Ptrader–that is what happens when I do these things without actually pulling my account up–it was the C 6.75% issue.

      1. Did you mean rmpl- (without the -P)? The one with a 10/31 call date?
        <$25.36 or so looks attractive to me, if u trust the co. Until 2024 term, or making a few cents If called on 10/31.

        1. D–same one–different tickers for different brokers – I added a note. Yes you have the one–I would be surprised if they called it soon, but one never knows.

          1. Tx! Own some, may add a bit under $25.20.

            The different ways brokers and websites list the preferreds is annoying.
            I like qol’s way, just with ‘-‘ and no unnecessary “P” , “.” or “pr” or whatever.
            In any case, to avoid confusions and to have 1 single standard here in III
            May I suggest why Not adopt one single style in III?

            1. D–actually I use RMPL- here on the spreadsheets because that is the google finance ticker which pulls the quote. I just changed the security page to RMPL-. But in general I use the google finance ticker since that is what I have to use to pull the quote.

              1. The symbols for preferreds having so many variations is a well known drama, but RMPL- is particularly unique. Does anyone know why they have such a unique symbol? I know, asking “why” is a dangerous question…

                1. Not sure why the -, but this is on QO :
                  Previous Ticker Symbol: RVNOP Changed: 10/26/2017
                  Previous Name: RiverNorth Marketplace Lending Corp Changed: 4/15/2020

                  Uses the old initials and a
                  I saw another one recently, can’t recall which.
                  Also this- not too helpful :

                  Stock Symbols With Hyphens

                  While the NYSE and NASDAQ are the most well-known stock exchanges, there are other exchanges in the U.S. that conduct trades. When using an online stock-quoting service, you can get a price quote from a particular exchange by following the stock symbol with a hyphen and a letter which identifies one of the five exchanges. The exchange codes are: B (Boston), P (Pacific), X (Philadelphia), M (Midwest or Chicago) and C (Cincinnati) (Reference #1 NYSE).
                  You may also see a hyphen used in stock symbols indicating “preferred stock”. Preferred stockholders have a higher claim on the earnings and assets of a corporation than do holders of “common stock.” Unfortunately, preferred-stock ticker symbols are not universal, and brokerages use different designations for preferred stock. The NYSE once used a hyphen in designating preferred stocks, but that practice has been abandoned.

                  1. There are a handful. MTL- DTLA- HLM- are several others that come to mind. I don’t know the exact history of why they aren’t followed by the series but using hypens to denominate preferred shares is the nasdaq integrated platform method. using “p” as in “WRBpB” is the CQS method and “pr” as in “WRBprB” is the CMS method of symbology.

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