S&P500 futures are off a bit this morning–not much but a little. Quiet day? Who knows of course, but with earnings season upon us anything can happen. The 10 Year treasury yield is lower at 4.17%–off 6 basis points.
Speaking of earnings I am anxious to watch BDC earnings (or lack thereof). In particular I want to watch for both realized and unrealized gains and losses. From what I have observed thus far the unrealized losses are fairly high–much higher than a year ago. Generally the well diversified BDC will do just fine for now, but there will likely be a few that fall below (or near) the minimum asset coverage levels of 150% (there are a few that still have a 200% minimum asset coverage requirement).
Yesterday residential mREIT Dynex (DX) reported as did commercial mREIT KKR Real Estate Finance (KREF) giving us an early look in these sectors.. Neither report was pretty—no one expected them to be great.
Yesterday we had soft purchasing managers numbers released. Today we have home price indexes released as well as consumer confidence. I would be surprised if either of these moved markets – important as part of the macro picture, but individually not important.