Watching the futures markets after the release of the Hot CPI numbers this morning I was confounded that the S&P500 was off just 1%–but now about an hour into the day it is off 2.50%.
Interest rates which actually moved a little lower after the inflation numbers were released are up 7 basis points now to 3.10%–more in keeping with what I thought would happen.
I note today that a couple of the Oxford Lane Capital (OXLC) issues are getting hammered. OXCLO which is a 6% 2029 term preferred is off about 2%, while the 6.25% 2027 issue-OXLCP-is off over 1%.
The OXLCM term preferred issue has traded stronger trading at $25.15–this is a 6.75% issue. This issue has a mandatory redemption in 2024.
The lesson is that the higher coupon issues trade stronger–in particular with a mandatory redemption in 2024. Note that the new Oxford Lane 7.125% term preferred is trading on the OTC market at 24.64 (of course not buyable by us ‘non experts’).