Well Let’s Get This Big Day Going!!

Well, we know that in 30 minutes we will have the announcement of the latest consumer price index (CPI) and it better be right on the forecast or we could see some fireworks–whether it is up or down can’t be forecast, but the investing public knows exactly what the Fed wants to see–the Algo’s will no doubt exaggerate any movement in the equity markets. As always I prefer that markets do nothing–steady as you go. The core rate of inflation is forecast at up 3.7% (year over year) with the headline CPI itself up 3.1%–who knows for sure (certainly not me). My opinion is no rate cut in March–so don’t think this number will be of consequence.

Equity futures are mixed this morning–DJIA is flattish, NASDAQ is up a decent amount and of course with NASDAQ the S&P500 is up 1/3%. The 10 year treasury is at 4.09%–pretty much dead flat. This is one of those days where we could see a 10 basis point move in interest rates–or we could continue to have a boring market–boring is good.

Well we are about to bid adios to the nice NiSource 6.5% fixed rate reset perpetual preferred (NI-B) which will be redeemed on Friday– so not only are CDs maturing, but I will have a chunk of money from this redemption.

As I mentioned yesterday I would be doing some buying this week–and I did some yesterday. I added to my position in Trinity Capital 7% baby bond (TRINL)–these have a maturity date in January, 2025 so I am just looking for a smooth ride with about a 7% YTM—there will be no capital opportunity here. Additionally I added to my Pennymac Investment Trust 8.5% baby bonds (PMTU) with a maturity out in 2028 so there could be a nice capital gain available in the next year, but that is not expected–8.5% is a good reward. As I mentioned I also ‘rolled’ some money into a September 5.3% non callable CD where I had a rung missing from my ladder. Of course I will add these buys to the ‘laundry list’ of holdings.

So I will continue to look for buys–I may have to initiate a new position in a CEF preferred to balance my high yield basket. I already have quite a bunch of CEF preferreds, but they are full–or even overweight positions and I am not comfortable going to double weighting–even in a CEF preferred.