Innovative Income Investor | Innovative Income Investor

Headlines of Interest

Below are some press releases from company’s that have preferred stock and baby bonds outstanding.

Stifel Reports October 2022 Operating Data

Brookfield Infrastructure Renews Its Normal Course Issuer Bids

RiverNorth Specialty Finance Corporation Announces Name Change to RiverNorth Capital and Income Fund

XAI Octagon Floating Rate & Alternative Income Term Trust Will Host Q3 2022 Quarterly Webinar on December 1, 2022

Bank of America Corporation Announces Hypothetical Accrued Dividends and Hypothetical Total Consideration for LIBOR Depositary Shares Sought in its Cash Tender Offers and Amendments to the Offer to Purchase

Waiting on Important Economic News

Looks like markets are waiting on economic news later in the week. Chinese unrest is playing on the markets today. Markets have moved lower in an orderly fashion.

Treasury yields today are moving at a snails pace. There is no economic news today, but in a few minutes we have a couple of Fed folks shooting their mouths off. Big mouth Bullard will give an interview at 11 a.m. todays and Williams will speak at the same time. Can’t imagine what Bullard can say that is more hawkish than his recent statements—but he can always come up with something–who knows.

Tomorrow we have a few more minor reports–Case Shiller home prices and consumer confidence. Not likely market moving.

On Wednesday we have ADP employment (who really cares?) and the revision of 3rd quarter GDP. We will also have the job openings report–we’ll see if these are weakening. Also Fed Chair Powell and Fed governor Cook speak around midday.

Thursday and Friday will have market moving economic news–posted below. These will be wild days.

Monday Morning Kickoff

Well here we go once again going into what is 100% certain to be an exciting week with plenty of economic news to drive markets up and down.

Last week the S&P500 traded in a range of 3933 to 4034 -relatively speaking a quiet week – a range of just 2.5%. The index closed at 4026 – near the high. Of course the week was just 3.5 trading days and portions of those days were light on volume. This week is destined to be much more volatile with many economic releases of importance.

The 10 year treasury traded in a range of 3.68 to 3.83%, closing 3.69% – perfect! A nice narrow range which keeps income issue moving a little higher. Whether rates move up or down as long as they don’t move too quickly preferreds and baby bonds won’t react much.

The Federal Reserve balance sheet data was not released on Thursday as is the norm – with the holiday on last Thursday. We should see the number later today. Of course we remain on a $95 billion monthly reduction schedule–we are creating a little room for the next quantitative easing cycle (when it comes–and it will come but we don’t know when).

Last week we had green prices on $25/share preferreds and baby bonds. The average share moved higher by 16 cents. Investment grade issues moved 19 cents higher while banking issues moved 20 cents higher. CEF preferreds only crept up by 4 cents with mREIT preferreds up 17 cents. We are now about 5% higher overall than 4-6 weeks ago.

Last week we had no new income issues priced.

Wrapping Up a Thankful Week

I trust everyone had too much food and too much football yesterday. Hopefully everyone had time to reflect on what they had to be thankful for—I know my wife and I talked about it as we have done in recent years. We can find plenty to complain about, but in reality we have way more to be thankful for–in particular family, health and to a smaller degree wealth. Our wealth isn’t such that we can toss money away on non important items continuously, but adequate to provide the basics in life that are important to us.

I am also thankful for the readers and commentor’s on this website. Certainly this website provides pleasure to me or I wouldn’t work on it so much—honestly if I didn’t have this to work on I would be a bit lost after 16 years. This past Wednesday I received a Thanksgiving card and ‘donation’ from a long time reader–with it a bit of his personal ‘story’. Items like this make working on the website worthwhile (not the donation, but the story).

Ok so today futures are up a bit and historically today should be in the green by around 1/2% or so. Interest rates are up 1 basis point at 3.71%.

As has been typical in recent weeks and months I will do little or nothing today market wise. I could nibble a small amount adding to current positions, but it will be very small. November has been a good month for me with reasonable gains as we approach the end of the month–I always love the end of the month with dividends and interest payments pouring into our accounts on the last day of the month or 1st of December – helping to fund some nibbling next month.

Next week on Monday we have no real economic data being released–Thursday and Friday will bring the real news with the PCE price index on Thursday and then November employment numbers on Friday. These will be contributing data points for the December FOMC meeting decision of either a 50 or 75 basis point rate hike so they will be closely watched.