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Sliding Into a Long Weekend

Markets are all kind of quiet–both stocks and bonds, as we look into a 3 day weekend (at least as far as stock and bond trading are concerned).

Stocks are moving around 1/10% right now and the 10 year treasury is off 3 basis points at 1.59%. It will be interesting to see the close today–seems likely that stocks may slide as folks bail out before any surprise news potentially comes out over the long weekend.

$25/share preferreds and baby bonds are moving little today (on average). All sectors are up a penny or down a penny.

We are still awaiting pricing on the new Orchid Island Capital (ORC) perpetual preferred. This happens on occasion–an issue is announced and then pricing is delayed or in some instances even cancelled. The company has not filed a cancellation notice so I assume the issue is still on.

This weekend I will setting up a new ‘discussion‘ area for “Broker/Brokerage” talk. We always have folks discussing the rules and regulations of the various brokers–what they will let us buy etc. I will be getting this set up in the right hand menu area. This will allow for keeping some of this info segregated and will hopefully be a reference area. Thanks to a number of folks for encouraging this area.

Additionally I started a new ‘study‘ on new issues. I began with the Southern Company 4.95% Notes (SOJD) on 1/6/2020. I have seen questions on the value of buying new issues and then flipping them during the 1st month (or sometime shortly after issuance). I am looking at the ‘opening trade’, 1st day close, and close after 30 days.

If you would have bought on the open on the issue above and sold on trading day 30 you would have banked a capital gain of 47 cents/share.

I will see if I can get the spreadsheet to be understandable and then post it. I update it each day with new issues etc.

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