Well it looks like another bullish day–at least to start with since things could reverse quickly.
Futures are up over 1% (S&P500) while interest rates (10 year treasury) have tumbled by 12 basis points from yesterdays 4.07% close–now at 3.95%.
It seems like Jay Powell will need to ‘thread the needle’ tomorrow to satisfy the high expectations of the marketplace–1 misstep and markets will tumble–and maybe that would be ok with the Fed Chair. I can’t imagine that Powell is too happy with the huge equity rally in October–as I mentioned before he doesn’t want to be seen as a ‘lackey’ for the markets.
Today Oxford Lane Capital (OXLC) released earnings and while I haven’t dissected them the headlines seem decent. I am most interested in this as I own 2 term preferred they have outstanding and I own other CLO owners (collateralized loan obligations) so OXLC in and indicator of what’s to come from others. The company’s net asset value only fell by 14 cents/share–I would have guessed more. Their press release is here.
While the last number of days have been quite positive for income issues there remains giant numbers of ‘bargains’ out there. While I have little cash I will have various treasury’s hitting maturity in the next few months as I own issues maturing starting next month and continuing for the next 2 years.
No action today for me – just laying low until we get through the Fed announcement tomorrow at 1 pm (central).