After weeks of prices tumbling we now note that stability has returned to the preferred and baby bond markets.
The average share is off just 4 cents this week which, thus far, is much better than we have seen the last couple of weeks when share prices fell by 41 cents in total.
We have personally lost about 3/10% the last couple of weeks–almost all in our perpetual preferred holdings. We have been in the mode of losing a little capital each month, but recouping it the end of the month when dividends and interest hit (since we hold a lot of monthly payers).
Watching volumes on preferreds stocks leads me to believe there is plenty of action still occurring in the preferred stock arena. Yesterday we saw heavier than normal volumes in the shipping issues (Tsakos and Teekay) as well as in the regional banking area (TCF Financial and MB Financial). We also saw the Gladstone Investment 6.25% term preferred (GAINM) fall by 39 cents on 10 times the normal volume.