The 10 year treasury moved about 4 basis points higher today (to the 2.59% area) thus far–doesn’t appear to be any particular reason behind the move and certainly it is of no concern at this moment.
Generally markets are quiet. The SP500 started off with a pop on various earnings announcements, but then the health insurers started to tumble based on political rhetoric so now it is up a measly 1/10th of 1%–sounds just like yesterday.
We are showing the average preferred and baby bond up 5-7 cents on the week thus far–obviously the previous rally ran out of gas.
The active preferreds are the usual suspects. REIT Washington Prime Group (NYSE:WPG) preferreds are are off 2% today and the CBL issues are off 1%. Also the Summit Hotels 6.25% preferred (INN-E) issue is showing big volume without major price movement–trading at $23.55.
The Apartment Investment Management 6.875% preferred (NYSE:AIV-A) is off 1% today as investors got caught on a redemption notice with only 14 cents of accrued dividends. Shares were trading in the $25.40 area prior to the redemption notice. Shares become redeemable on 5/16/2019 and that is the day they are being redeemed.
We also noticed the very nice HECO Capital 6.50% Trust Preferred (HE-U) from Hawaiian Electric was called for redemption on 5/15/2019. This has been callable since 2009 and we hate to see it go.