I figured it would be a quiet day in the various markets today. Stocks are up a little bit while interest rates are just treading water–plus and minus 2 basis points.
It is so quiet today I turned on Janet Yellen being quizzed for confirmation for Treasury secretary–talk about watching ‘paint dry’–that last 5 minutes. I think we all know that Janet will be dovish in that position. Her and Powell should make a good team–print money, print money and print more money.
I did notice that Wells Fargo (WFC) is selling a $1,000/share preferred stock offering which is a fixed rate reset issue. In the ‘use of proceeds’ section they state they may call preferreds with the proceeds. There are a number of issues currently redeemable and another that becomes callable on 3/15/2021 with a 5.70% coupon (WFC-W)–it is trading at $25.36 so little damage would be done with a call–they must call on a dividend payment date which would be 3/15.
I thought we would have some more new issues come to market today after a long weekend–but no luck–with rates threatening to move higher issuers may want to get the low coupons out now while the time is right.