March 22, 2019. It is becoming apparent that interest rates will continue downward. And in fact, traders are now expecting a cut by next year: exactly opposite of what we have been anticipating. We are selling this floating rate Corporate Bond today, and may be selling other positions in the Core Portfolio. We strongly recommend you read the excellent article linked below.
SELL CITI CUSIP: 1730T0G78. We bought this in 2014 and have a very tiny loss….the loss will get worse if you continue to hold. It was purchased with the expectation that rates would rise.
“Futures traders are now pricing in a 47% chance of a rate cut by January 2020, up from a 36% chance ahead of yesterday’s 2pm FOMC release.”