Crazy numbers–do you all believe the employment numbers released earlier today–353,000 new jobs. I am highly skeptical of the numbers, but in the end both equities and interest rates react so we have to work with the cards we are dealt.
The 10 year treasury yield is up a strong 15 basis points–now back above 4%, at 4.02%. As has been the case in the last month preferreds and baby bonds are NOT following the 10 year yield. You might expect a 1% giveback on your portfolio–but at least my account is down just the tiniest of amounts.
Yesterday I added a small nibble to my position in the CHS 6.75% perpetual preferred (CHSCM) at $24.95. As we all know by know this was originally a ‘reset’ issue–it has now been deemed a fixed rate issue by CHS based upon prospectus language. I note that this is the lowest coupon CHS issue outstanding–but I am not going to pay a giant premium above $25 on the other issues–it is possible that holders of some of those issues will get a giant surprise later this year if interest rates fall. I added this to my ‘laundry list’.
January was a good month–a gain of about 1.5%. Certainly it would have been much better if I didn’t have so many CDs etc. I will be more than happy with gains 1/2 of this amount.