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.

6 thoughts on “Sliding Into a Long Weekend”

  1. This site is making me extremely lazy anymore. I dont have to dig for me anymore because someone is always pointing out anything out there. Then I can either act or not. Like the RILYM. I was out of town drinking coffee and saw the post its up and running. So I simply bought my chunck at $24.94 with ease and will figure out what to do with it (if anything) later.

  2. On a side note over on CNBC there is an article written by Jeff Cox talking about how bond funds are seeing record numbers of new buying. $23.6 Billion last week alone and they are on pace to see over $1 TRILLION of bond fund buying for 2020. Let me say this again, with coupons at all time lows “THIS WILL END BADLY for millions and millions of UNINFORMED investors.

  3. Hi Tim; I too really appreciate deeply this new found site for my fixed income needs. I think I mentioned before I would not complain if you charged a nominal fee for a subscription. You do alot of work so it would only be fair. As a suggestion I would love to see some of us seasoned veterans who have been at this a long time (45+ years for me) have an exchange where we could swap ideas as to things that we still like and maybe are even adding to. Its gotten to the point where I cannot find a single thing to buy. My cash continues to build up and I fear that I will not be able to put it to good work. My last 3 purchases have all been “Oily MLP’s” that bounce around quite a bit. I don’t count the mistake I made by buying COF+P . When all the dust settles on that one the first of March I will have lost a whopping 2 cents per share. Again, I do thank you Tim. PS Don’t forget to get your beautiful bride some flowers and candy for Valentines Day. Chuck P

  4. Thanks for everything you are adding. This site just keeps getting better all the time.
    Given the burdens you are taking on, I hesitate to ask. But it might be nice if, as part of the study of new issues, there was some side note of where interest rates stood on the day of issuance and 30 days later. (Perhaps use the 10 yr treasury or some other indicator.) I think part of the question is whether the change in price of new issues is related to general market factors, or liquidity factors between the issuance and 30 days later. Thanks.

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