Well the markets gyrated around a bit last week, but in the end the S&P 500 ended up going nowhere closing almost exactly where it started the week.
Interest rates had a bit more (a very little bit) movement than the stock market as the 10 year treasury opened the week at 2.14% and moved around to as low as 2.07% before closing the week at 2.09%.
All in all a quiet week really, but we all know that this Goldilocks marketplace can continue for months, or it can spin and change on a dime and no one is going to blow a whistle letting us know in advance of changing markets.
The Fed Balance sheet grew by $2 billion last week–taking a breather from the $55 billion runoff from the previous 4 weeks.
The average $25 preferred stock and baby bond closed last week with a loss of 4 cents to close at $24.87–for all practical purposes this is flat with no movement (unless you owned some of the Ashford Hospitality preferreds which got battered on a common dividend cut).
There are now 201 issues trading at $25 or below compared to 202 issues last week–again nothing really changed through the week.
Last week we had 4 new income issues announced. 2 baby bonds and preferred issues.
REIT Armada Hoffler (NYSE:AHH) announced a nice 6.75% fixed rate. This is a typical REIT preferred–cumulative, perpetual and unrated. The issue is trading under ticker AMAHP on the OTC Grey market and traded between $25.20 and $26.30 before closing the week at $25.75. Permanent ticker will be AHH-A.
Armada Hoffler final prospectus
Voya Financial (NYSE:VOYA) announced a marginally investment grade fixed-to-floating rate preferred issue with an initial coupon of 5.35%. This issue is trading on the OTC Grey Market under ticker VOYXL and struggled to close the week at $25.29. Permanent ticker will be VOYA-B
Voya Financial final prospectus
Great Elm Capital (NASDAQ:GECC) sold a baby bond with a fixed rate coupon of 6.50%. GECC is a BDC and potential investors would do well to review the companies financials prior to any investment. The issue has a shorter maturity in 2024, which could help performance of the shares. The new baby bonds will trade under ticker GECCN when they finally trade–sometime in the next week or so.
Great Elm Capital final prospectus
Lastly utility Sempra Energy (NYSE:SRE) sold a baby bond with a coupon of 5.75%. The maturity on this one is way out in 2079 and the bonds do have the fairly normal deferment clause that allows up to 40 consecutive quarters without a default being declared. Of course being a California utility attention should be given to potential liabilities for future wild fires etc. prior to investing in this one–personally I see no reason to by an issue with this kind of coupon with real (or imagined) risk. The ticker is not known, but the issue should trade in the next week or so.
Sempra Energy final prospectus