So in about an hour we get the decision on a interest rate hike – 1/4% hike. I would think this would get an react whatsoever, although the algo’s will push the indexes up and down some just because that is what always happens. As always the Jay Powell presser after the announcement will be the important news. To me it isn’t really news since he will say ‘we are data dependent’ and will await further news to make decisions in the future–to say anything else would signal another pause or an end to hikes and there is no way this Fed would want to send this message.
Last night we had the announcement of the PacWest and Banc of California merger – it looks like it will work out just fine for PacWest 7.75% fixed rate reset preferred holders as the PacWest issue is to be replaced with a like issue of Banc of California preferred. PACWP is trading up $2.66 right now at $20.86 – still at a high 9.29% current yield.
Also of note is the acquisition by Atlantic Union Bankshares (AUB) of American National Bankshares (AMNB). AUB has a 6.875% preferred stock outstanding and there is no affect on these shares with the merger.
So let’s sit back and see what kind of news we get from Jay Powell and then we will see if we get a jump in CD rates tomorrow (or even today)-maybe the banks will be stingy and not move rates higher–who knows.