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March 8, 2015We constantly receive questions about what affect interest rates have on preferred stock prices. In a general sense we can address this question for perpetual preferreds.  Even though we have read investor speculation that interest rates do not effect fixed income type securities there should be no question that there is a very pronounced relationship and for those that…

When we saw the employment numbers yesterday it became quickly obvious that income issues were likely in trouble for the day as the 10 year treasury shot up by 10 basis points immediately and then continued to climb until reaching 2.25%.Both REITs and Utilities have been substantially overvalued for a while and honestly the setback is more than overdue. Certainly…

With the very strong employment report this morning the 10 year treasury has jumped up to 2.19%. This is the highest rate since early December and we will see how preferreds and exchange traded debt react. In the last few weeks these sectors have pretty much ignored higher trending rates--while REITs and Utilities have been moving in both directions---I believe…

Today we took the opportunity to add a few hundred shares (300 shares) of REIT Chambers Street Properties (ticker:CSG) to both the 2014 Model Portfolio - Blended Income and the 2015 Model Portfolio - Blended Income. With the moderate correction that has been occuring in the REITs CSG has fallen from the $8.75 area a month ago to $7.95 today. With this drop…

As interest rates continue a modest creep higher there remains plenty of excitement yet to come this week.Starting on Wednesday we have the ADP Employment report.  We realize this is mostly a balony report--but if markets pay attention then I guess we have to also. The consensus is 220,000 new jobs for February. Sounds pretty much like a Goldilocks number--not too…