So Much for Higher Interest Rates
By: Tim McPartland,
While we repositioned our portfolios for higher interest rates in 2015 it is definitely questionable whether a 3% quess will be hit. Of course if you watch the main stream media you can hear guesses on the 10 year treasury all the way from a negative rate up to 3%. Certainly it appears to be a coin toss (it always is I guess). We have guessed that we reduced our average coupon on preferreds and exchange traded debt by maybe 1/2% to shorten durations and reduce volatilty of the portfolios–if we are wrong we can live with it.
MLPs are red today–but not yet by huge percentages. This of course is based on West Texas falling off by a buck this morning.
REITs are off a 1/2% pretty much mirroring the market–nothing special here.
As we get these markets sorted out we are trying to be very patient in picking issues to buy. We are pondering buying some Arlington Asset Investment Corp debt we announced yesterday when it begins to trade–likely next week. Beyond that we don’t have solid ideas for buying.