It’s another snoozer of a day not only in the interest rate sensitive areas but in common stocks as well. The SP500 is off 1/10th of 1% and the 10 year treasury has moved less than 1 basis points. Yawn.
We all know that after you start stringing together a bunch of days that are pretty quiet something is going to come out of the blue and send either stocks or interest rates gyrating (or both).
Last week, which was pretty quiet, we picked up a couple issues and we are looking for 1-1.5% gains before selling them off.
Prospect Capital 6.875% baby bonds (NYSE:PBC) took a bit of a spill last week so we got a larger than normal position at $24.87 and we see shares trading at $25.07–no immediate ex dividend in play here as it doesn’t go ex until 5/28 or so. Another nickel or dime and it could be gone–or we may just patiently hold.
Also we picked up a larger than normal position in WR Berkley 5.75% baby bonds (NYSE:WRB-D) at $25.20 and are looking for the same 1-1.5% in the next week or two. It goes ex on around 5/14 so I think we will see a lift prior to ex dividend. Again if we get the chance we may exit before the ex date–or we may hold right on through and pick up the dividend–depends on price action.
Both of these issues are investment grade so if we get ‘caught’ with them prior to our gain targets we are happy to hold them.
Remember we don’t advocate ‘trading’, but it is fun to do sometimes. We now have our “base” positions (buy and hold) and we are doing a little capture around the base.