We are in the typical goldilocks period when interest rates have already spiked higher and now are drifting back waiting for the next ‘event’ before potentially moving higher.
Long time investors in preferreds and baby bonds know this is the time to re-evaluate you portfolio and make sure you are ready for the next month or two.
If we assume that interest rates are going to move higher from here one may want to peruse their low coupon issues to see if that is where they want to be in a rising interest rate cycle since these issues will normally fall faster than others.
As rates rise mid level quality (or even junky quality) and coupon issues will normally trade the firmest–typically falling slower than the quality issues. Additionally those baby bonds and term preferreds with ‘date certain‘ maturities in the next few years typically react less to interest rate moves since investors know they are going to realize their $25/share price upon maturity (assuming the company remains solvent). This is where I like to invest–shorter maturities–you can find those issues here.
I will spend the weekend trying to find dividend/interest payers for the end of the month since I had so many September payers October is looking a bit skimpy (except my monthly payers which I have a boat load already).