All markets took a good step toward turning around last Fridays move–a move that seemingly was just using a new covid variant as a reason to sell stocks and buy safety/bonds.
The 10 year treasury yield moved 6 basis points higher to 1.53% from 1.48% last Friday. Further news on the covid variant may well determine where rates go from here.
The average $25/share preferred and baby bond rose by 6 cents today – 1/4 of 1%. Not a giant move, but I don’t really care to see giant moves up or down – no use ‘spooking’ folks with giant moves.
B Riley (RILY) announced a new issue of baby bonds–the preliminary prospectus is here.
Ken mentioned today that Newtek Business Services (NEWT) put out a partial call on their 5.75% baby bonds due 2024 (NEWTL). They will redeem 1.6 million shares (bonds) out of 3.14 million outstanding on 12/29/2021. Recall that NEWT is a business development company (BDC) looking to turn themselves into a bank holding company early next year. The filing announcing the redemption is here.
Gary made note that the new Granite Point Mortgage (GPMT) 7.00% fixed to floating rate preferred (with a 7.00% floor once it hits the floating period) is now trading under GPMTP–a change from last weeks GPMTV.
mbg pointed out that if B Riley (RILY) follows through on the call on their RILYO 6.75% baby bonds as pointed out in their new prospectus they will have to pay the bonus rate of $25.50 (plus accrued interest) if redeemed before 5/30/2022. The rate after that date and until 5/31/2023 will be $25.25. Afterwards it is $25.