While equities are up strongly this morning interest rates are just a few basis points higher. The good part of trading today is that the markets are orderly–no new provocative tweets from the President and soothing trade words from Larry Kudlow.
Income securities are essentially unchanged on the day.
We do note that AmTrust Financial has filed a very large document that outlines all the processes and procedures for going private. Of course AmTrust and Maiden Holdings, both insurance companies, have substantial amounts of non cumulative preferreds outstanding as well as baby bonds. Investors have an interest because there is always a chance that both companies decide they non longer want to declare dividends on their preferreds which leaves investors in the position of holding assets which do not have a income stream attached which would mean shares would likely trade down to the $5-10/share area. We have no idea if this is a realistic outcome.
Interested folks can find the major document here. We have not read the document.