It was red today–almost solid red. With the 10 year treasury up 5 basis points for the day we normally wouldn’t see so much red in preferred stocks and baby bonds, but we sure had a sea of it.
It goes to show you that reactions to higher rates varies from year to year–maybe even from month to month. Certainly we had days with 5 basis point moves in interest rates within the last couple of months with no reaction whatsoever. We have more than interest rates moving the markets.
We have the children in Congress unable to get anything done. We have senators castigating the Fed Chair. We have energy prices spiking higher. We have never ending disagreements on Covid vaccinations and booster shots. Let’s face it things are a damn mess.
Anyway with all the baloney going on I bought a couple preferreds today–actually I added a little (a few hudred shares) to current positions.
The Armour Residential REIT 7.00% (ARR-C) monthly paying preferred was off as much as 50-60 cents during the day today so I picked up a little around $25.45–this issue was trading up around $26.60 last month so while it may still fall further it was much cheaper to buy today.
Also I bought a little more of the Telephone and Data Systems TDS-V 6.00% perpetual preferred which traded as low as $25.18 during the day–down from around $25.85 a couple days ago.
I am not recommending anyone buy willy nilly here–but there are opportunistic buys that can be made–probably will end up buying more if issues continue to fall.