Our site runs on donations to keep it running for free. Please consider donating if you enjoy your experience here!

Monday Morning Kickoff

Let’s go–let’s get this week underway–I have no idea why I am all fired up to get this week underway. Maybe because the weather here is terribly cold (-12) and I have been very bored–I think I will be looking into a gym membership this week.

Anyway the S&P500 rose a nice 2.5% last week to close at 4071–the highest close in the last 2 months.

The 10 year treasury yield closed at 3.52% on Friday. The yield was in a range of 3.42% to 3.56% for the week–a week with a number of important economic news items. The leading economic indicators came in soft on Monday at -1.0% against a -.7% forecast. On Tuesday the PMI manufacturing index and the PMI services index both came in hotter anticipated. On Thursday the very important jobless claims number came in lower than anticipated, which has been the case week in and week out. The 4th quarter GDP came in slightly above expectations and durable goods orders came in very hot BUT the durable goods number was driven by tranportation–mainly new aircraft, trucks and SUV orders–taking these out durable orders were down. On Friday we had the personal consumer expenditures price index number which came in right on forecast at 4.4%. All in all the economic releases are not showing much distress at all in the economy. Fortunately inflation is seemingly under control for now.

So for the coming week we have the FOMC meeting starting on Tuesday and then at 1 p.m. (central) on Wednesday we have the announcement of the Fed Funds rate hike–1/4% if the consensus is right. Fed chair Powell has his news conference at 1:30 p.m.–probably more important to markets than the rate hike. Powell will likely warn they stand ready for larger rate hikes if inflation flares again.

Of course there will be plenty of news beyond the FOMC meeting–the long list is below.

The Fed balance sheet fell by $17 billion last week–now at $8.47 trillion.

Last week was another great week for $25/share preferreds and baby bonds as the average share rose by 27 cents. Banking issue rose by 26 cents, while investment grade rose just 14 cents and CEF issues rose only 7 cents. mREIT preferreds rose 45 cents.

Last week we had no new income issues priced.

We did have a preferred stock dividend suspension on Friday by crypto banker Silvergate Capital (SI) on their 5.375% perpetual (SI-A). Shares are trading between $8 and $9/share now.

Markets Quiet While Awaiting News

Equity markets are quiet at this moment, but it is very likely that this will change in an 30 minutes when economic news hits.

The 10 year treasury is up 4-5 basis points to about 3.54.%

At 7:30 a.m. we have the PCE (personal consumption expenditures price index) announced. The Federal Reserve claims this is one of their favorite inflation indicators. The forecast is for a year over year number of 4.4% versus 4.7% last month.

After the market closed yesterday plenty of earnings were released--including one I had been waiting for which was PacWest Bancorp (PACW). Of all the regional/community banker earnings that I have skimmed PACW had the distinction of the poorest earnings as they took a number of write downs for business segments they are exiting–so I will need a lower price on their 7.75% fixed rate reset preferred (PACWP) to consider an investment.

Yesterday continued the ‘green streak’ for preferreds and baby bonds–just barely green, but up just the same. No activity for me–probably won’t be any today either.

Headlines of Interest – Again Lots of Earnings

Below are press releases from company’s with preferred stock or baby bonds outstanding–or just general news of interest.

Logo.png

PacWest Bancorp Announces Results for the Fourth Quarter and Full Year 2022

cowen_logo_white_v051321_1200x1200px.jpg

Cowen Declares Quarterly Dividend on Its Series A Cumulative Perpetual Convertible Preferred Stock

Midland_States_Bancorp_RGB.jpg

Midland States Bancorp, Inc. Announces 2022 Fourth Quarter Results

SIRIUS AQUA GRAPHIC logo RGB AW.jpg

SiriusPoint Announces Date for Fourth Quarter 2022 Earnings Release

Freddie Mac logo.jpg

Mortgage Rates Trend Down


Diana Shipping Inc. Announces Direct Continuation of Time Charter Contract for m/v Atalandi and a New Time Charter Contract for m/v Leto

Valley National.png

Valley National Bancorp Reports Fourth Quarter Earnings, Increased Net Interest Income and 15 Percent Annualized Loan Growth

GasLog Partners Logo_Blue_RGB.jpg

GasLog Partners LP Reports Financial Results for the Three-Month Period and the Year Ended December 31, 2022 and Declares Cash Distribution

View Press Release

NuStar Energy L.P. Declares Fourth Quarter 2022 Common Unit Distribution and Series A, Series B and Series C Preferred Units Distributions

View Press Release

Ellington Financial Announces Estimated Book Value Per Common Share as of December 31, 2022

View Press Release

Redwood Trust Announces Date of Fourth Quarter 2022 Financial Results Webcast and Conference Call

W. R. Berkley Corporation Reports Fourth Quarter and Full Year Results

View Press Release
View Press Release

US Mortgage Performance Remains Exceptionally Healthy in November, CoreLogic Reports

SUMMIT HOTEL PROPERTIES DECLARES FOURTH QUARTER 2022 DIVIDENDS

SUMMIT HOTEL PROPERTIES DECLARES FOURTH QUARTER 2022 DIVIDENDS

NiSource increases common stock dividend and declares preferred stock dividend

NiSource increases common stock dividend and declares preferred stock dividend

Associated Banc-Corp Reports Fourth Quarter 2022 Earnings of $0.70 Per Common Share and $2.34 Per Common Share for the Full Year 2022

WEBSTER REPORTS FOURTH QUARTER 2022 EPS OF $1.38; ADJUSTED EPS OF $1.60

First Citizens BancShares Reports Fourth Quarter 2022 Earnings

First Citizens BancShares Reports Fourth Quarter 2022 Earnings

Lots of New Data

Lots of new economic data this morning and none of it showing much economic weakness.

Initial jobless claims remain very muted compared to forecast. Durable goods orders came in very hot (although I did not dissect the various sectors). GDP for the 4th quarter came in about as forecast at 2.9%.–the Fed looks at this and says more hikes in order.

Last night in the ‘Headlines of Interest‘ there were lots of earnings–and today there will be lots more.. Just looking at the bank comparisons it becomes obvious that the banks ‘gorged’ on PPP loan fees in previous periods–what a giveaway this program was for them–obviously the bank lobby did a very good job on this program.

Yesterdays ‘dusting of red’ actually ended up being a ‘dusting of green’.

I did nothing yesterday–no buying or selling. I doubt I will do anything today or even tomorrow (although who knows). Waiting for some sort of setback in prices.