All in all it has been a quiet week in most markets which is kind of a surprise, but we welcome calm.
Interest rates are up a couple basis points today at 2.85%, but obviously the 10 year treasury is stuck in a 2.80-2.90% range for now.
As anyone that owns any MLP related securities knows this was the one sector that has had a tough week as the Federal Energy Regulatory Commission ruled that MLPs which are pipeline related would not be able to get a income tax allowance in cost of service rates. For many MLPs this is much ado about nothing. For solid pipeline companies they will have a modest amount of reduced revenue and distributable cash.
The new issues that started trading this week are trading right around their offering prices. Compass Diversified f-t-f preferred which started trading last week is weak–trading around $24.23. Shares are moving to the NYSE today from the OTC Grey Market–maybe the pricing will firm.
We are watching for the Federal Reserve balance sheet runoff which is announced every Friday at noon (ET) to see what , if anything has run off since last week. This is actually a longer term factor in the markets, but we watch it weekly just the same.
We just had the University of Michigan Consumer Sentiment announced at 102 which was way above expectations. Guess folks on the are feeling kind of good about their situation. Funny that the consumer is feeling this good, but retail sales have been soft all year.