New York banker NewtekOne (NEWT) has priced their previously announced new baby bond.
The issue prices at 8.625% The issue is rated BBB+ by Egan Jones. The maturity will be 10/15/2029.
NewtekOne Prices Baby Bonds
Author: Innovative Income Investor
Party ON!! Preferreds and Baby Bonds Join In
Well the party in common stocks resumed today–of course whether it continues will depend on the CPI and PPI numbers released later in the week.
Today (and last week) we saw that preferreds and baby bonds are joining in on the party with many gainers in the 1-3% area. I know I had at least 3-4 issues gain near 2%. It seems to me that for the foreseeable future income issues should slowly move higher as folks search for a bit more yield on their money. Thus far it doesn’t appear that money is coming out of money market funds–will we see a big move here after the likely fed funds rate cut next week?
Headlines of Interest
Below are press releases from company’s with preferred stock and/or baby bonds outstanding–or just news of general interest. News will be rather slow until the the end of the quarter and start of earnings season in early October.
Valley National Bancorp to Announce Third Quarter 2024 Earnings
Star Bulk Announces Vessel Sale and Repurchase of Common Shares
Scorpio Tankers Inc. Announces an Update to its Securities Repurchase Program
Ellington Credit Declares Monthly Common Dividend
National Storage Affiliates Trust Announces Issuance of $350 Million of Senior Unsecured Notes
NewtekOne Announces New Baby Bond Issuance
Banker Newtek One (NEWT) has announced they will be selling a new issue of baby bonds with a maturity in 2029.
NEWT has many different baby bonds outstanding which can be seen here. It is highly unlikely that the company would call any issue as any callable issues are at very low coupons.
The preliminary prospectus is here.
J announced this in the ‘reader alerts’ a bit ago.
Weekly Kickoff
So we are in a seasonally weak time of year for stocks and most certainly we saw that last week with the S&P500 off rather sharply. The index closed the week at 5408 which was down from a close the previous Friday of 5648–a drop of 4.2% in a holiday shortened week. Seasonally this time of year can be wild–many of use can remember really weak September/October time frames–in particular 1987. It is strange that I can remember where I was on ‘Black Monday’ so it was obviously a monumental day for stocks–don’t want to see that again, but who knows.
The 10 year treasury closed the week at 3.71% which was down a sharp 20 basis points from the 3.91% close the previous Friday. Economic news has been critically scrutinized recently in the lead up to next weeks FOMC meeting. Obviously everyone is looking forward to a Fed funds rate cut–just a matter of whether it is 1/4% or 1/2%. Does it really matter much to me? No–I will not do one thing different no matter the size of the cut–I have moved my allocations to preferreds and baby bonds up–reducing the size of treasury’s , CDs and money market holdings. This week we have more economic news that will move markets this week in the consumer price (CPI) and producer price (PPI) indexes.
The Federal Reserve balance sheet assets fell by $11 billion to now stand at $7.11 trillion. We have had the Fed let almost exactly $1 trillion in assets run off the balance sheet in the last year–just another 7 years and we will be back to zero which of course will never happen.
Last week, as might be expected, the average $25/share preferred and baby bond rose by 13 cents. Investment grade issues rose 20 cents, banking issues rose 13 cents, mREITs rose 5 cents and shipping issues rose 21 cents.
