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End of Day Wrap

Wow–what a crazy day it was in equities–up 600 and then down 400 or so–over a 1000 point range, ending down 462 Dow points. Guess chairman Powell didn’t back off the potential for a quicker taper today so we had to have a little tantrum–oh well–get over it.

The 10 year treasury started moving higher early today–up 4-5 basis points until the equity markets started to have a tantrum–then rates reversed to end up down 1 basis point at 1.43%.

The average $25/share preferred and baby bond rose by 5 cents today to $25.65—exactly to the penny where they closed last Friday.

B Riley (RILY) priced their new baby bond with a coupon of 5.00%–detail is here.

Ken mentioned that Prospect Capital was calling the PBC 6.875% baby bonds on 12/30/2021. The announcement is here.

af and EarlyBird posted the new upcoming term preferred offering from OFS Credit Company. Further detail can be found here.

EarlyBird posted on a follow on issuance of Greenidge Generating baby bonds–initial offering was in October and can be seen here. Seems like some of these companies are trying to ‘get while the getting is good’ (at least if an 8.50% coupon is good).

nhcoast posted on Egan Jones ratings (in sarcasm)–readers need to be very cautious when comparing Moody’s, S&P and Fitch ratings to Egan – Jones. Egan Jones is untested in my book–their ratings seem very lenient compared to the major ratings agencies and investors that compare their ratings to Moody’s, S&P and Fitch may well be very disappointed down the road.

Someone posted on Sotherly Hotels (SOHO) selling a property. In general does this mean they are close to resume cumulative dividends? All 3 SOHO preferred were up nicely today.

Chophouse posted on the newer 8.875% preferred from Cadiz (CDZI) that the shares had moved from $25 to $20.50.

We have had a plethora of very low quality issues come out lately and these are always prone to being hammered when folks understand the very low quality. Another one of these is the Comsovereign 9.25% perpetual which traded at $24 before it started to get hammered and now trades at $15.50. I see the common shares trade at 98 cents—what could go wrong?

If you are buying new issues with coupons of 8.875% or 9.25% in this low interest rate environment you know you are playing with fire.

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