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Round and Round We Go–or Is It Up and Down We Go

Equity markets remain pretty wild as everyone trys to figure out the longer term effects of the corona virus.

For us income investors it means a little more time to try to find some bargains. It seems everyone is trying to play the same game–maximize quality coupons with a little call protection. Quality issues over say 5.25% with a few years until potential calls are trading over $26 or $27–or even more and I have trouble pulling the trigger on these–but maybe there will be no choice.

I went ahead and added a little bit of the MVC Capital 6.25% baby bonds (MVCD) yesterday at $25.29. I did this with the knowledge of the partial call on 3/26–I already held a position so just added to it–I see it popped late yesterday to $25.56.

I am watching mostly (not all) investment grade issues right now–will try to add a few hundred shares here or there–hopefully with a little call protection, but it seems reasonable given my cash situation I may park in some issues without much financial call risk even if they are currently callable.

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