End of Day Wrap

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.

5 thoughts on “End of Day Wrap”

  1. Hard to comment on Omicron’s effect on the market without violating the No Politics rule.

    1. new variant as Tim said moved, the 10 year to 1.44 by this morning. and futures down also? doesn’t “Jive” in Martins a politcal world.

    2. Martin G – there are lots of things happening related to govt that I would love to pound on–but don’t want to break my own rules.

      1. Do unto others as you would have them do unto you. Remains golden regardless of market conditions.

    3. There is cause and effect. Concentrate on the effect not the political blame part of cause. That said, I have typed messages based on emotion and then deleted them realizing it adds nothing to successful investing.

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