Coming into the week we had potential to see interest rates higher with the release of the PPI and CPI–but neither number was “hot” and in fact they were a little lite on inflation so the 10 year treasury remained about where it started the week–right now trading around 2.97%.
The DJIA is up on the week and has been trading pretty strongly as some of the unknowns in N Korea and Iran are hashed out. Whether one agrees or disagrees with the Trump administration the marketplace would rather see action–not necessarily agreeable action–but action instead of an unknown.
For us the most excitement we have had is watching our Spark Energy (NASDAQ:SPKE) fixed-to-floating rate preferred (NASDAQ:SPKEP) fall by $1.50/share on lousy earnings caused by the cold snap that blanketed the country this winter causing costs for electricity to spike leaving energy retailers unable to pass the cost along. In spite of the loss we believe the company is in decent shape and should recover nicely–we hope we can write at length on this soon.
We had a couple of decent MLPs offer new preferred units–DCP Midstream and Oaktree Capital which we touched on a number of times. It is unlikely we have an interest in these are this time–maybe if they fall in price in the next year we might have an interest.
So next week we start it all over again–we hope no one experiences a Spark Energy next week and we have a quiet, profitable week.