Tim McPartland | Innovative Income Investor

Headlines of Interest

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

AMMO, Inc. Reports Second Quarter 2023 Financial Results

Pyxis Tankers Announces Financial Results for the Three Months Ended September 30, 2022

Fortress Biotech Reports Third Quarter 2022 Financial Results and Recent Corporate Highlights

Harbor Custom Development, Inc. Reports 2022 Third Quarter Financial Results

Prospect Capital Corporation Announces Launch of Cash Tender Offer For Any and All of its Outstanding 5.875% Senior Notes due 2023

The RMR Group Inc. Announces Fourth Quarter Fiscal 2022 Results

CHICKEN SOUP FOR THE SOUL ENTERTAINMENT REPORTS Q3 2022 RESULTS

Investcorp Credit Management BDC, Inc. Announces Financial Results for the Quarter Ended September 30, 2022, and Quarterly and Supplemental Distributions

Greenidge Generation Announces Financial and Operating Results for Third Quarter 2022 and Provides Operational Update for October 2022

CMS Energy Declares Quarterly Dividend on Cumulative Redeemable Perpetual Preferred Stock

A Digestion Day – Darned Quiet

Well the S&P500 and DJIA are barely moving today – the 10 year treasury yield has moved a bit higher – 5 basis points, as all markets digest the gains from last Thursday and Friday and certainly there is plenty to digest.

The average share of preferred stock or baby bonds are off about 1/2% today – no real surprise after giant gains last week.

Tomorrow we have producer prices – expectations are for +.4%–certainly this could move markets if the actual comes in more than .1 off expectations (either way).

Today the New York Fed released their 1 year and 5 year inflation expectations – they moved both higher from their previous take – 1 year from 5.4% TO 5.9% and the 5 year from 2.2% to 2.4%.

I’ve done nothing at all today–just watching. Maybe a nibble after producer prices tomorrow.

Monday Morning Kickoff

Common stocks rocketed higher last week by almost 6%. The entirety of the gain came on Thursday and Friday after the slightly softer inflation numbers were released on Thursday morning. Futures are off by a tiny amount this morning (6 a.m. central) so maybe we will see a few days of digestion in the markets.

The 10 year treasury yield plunged from the 4.15% area to as low as 3.81% on Thursday–bond markets were closed for the Veterans Day Holiday. Of course rates were reacting to the slightly softer inflation figures from Thursday morning. I believe that we will see rates rise somewhat in the coming week as the reality of the inflation numbers being only 1 data point sinks into investors minds–and enthusiasm subsides. At 6 a.m. Monday the 10 year is at 3.89%–up 8 basis points.

The Federal Reserve balance sheet numbers were not released for last week on Friday as is the norm because of the Veterans holiday–we should see the numbers released non Monday.

The average $25/share preferred stock and baby bonds rode a rocket higher on Thursday last week and to a smaller degree on Friday as the average share rose 90 cents. investment grade issues rose 85 cents, banks by 88 cents and mREITs by 99 cents. Shipper rose by a measly 4 cents.

Again last week we had no new issues priced.

Keep The Bond Market Closed a Few More Days (just kidding)

I had low expectations for income issues today after the crazy rally yesterday–but my expectations have been far exceeded.

With the bond market closed for the Veterans Day holiday observation preferreds and baby bonds have kept the party going–I’m up about 1/2% and my spreadsheets are pretty darned green.

Of course the last 2 days have given me gains in my junky issues–in particular Prospect Capital 5.35% perpetual (PSEC-A)–a real dog, but at least nice gains the last 2 days. Their earnings were released and probably not bad as the nervous nellies had imagined they would be (in fact they were decent). Also Liberty Broadband 7% preferred (LBRDP) bounced nicely as they had stellar earnings (of course bolstered by sales of Charter Communications shares which they sell most quarters—and they have a very low cost basis).

Today we had the U of Michigan Consumer Sentiment released and it came in soft–a reading of 54.7 versus a forecast of 59.5. Next week we have the producer price index coming on Tuesday–likely to be uneventful–but honestly who the hell knows.

Hope everyone had a profitable week–whether income issues or common stock. Rest up on the weekend and get ready for some likely wild action on Monday and Tuesday as we get to see where the bond markets want to take us.

Eagle Point Income Company Releases Monthly Update

Eagle Point Income Company (EIC) has released their monthly update.

The company which is a CLO (Collateralized Loan Obligation) owner is geared to owning the less risky part of the CLO tranches–mostly debt tranches (instead of the riskier equity tranchs) has 1 income issue outstanding–the 5% EICA term preferred issue which is trading at $22.42 for a current yield of 5.58% and a yield to maturity (in 2026) of around 8%.

The update is here.