The President gives a reasonably moderate talk to the nation and traders declare “party on”-seems kind of early to me to be celebrating, but what do I know?
With the S&P500 up about 7/10% interest rates have got on board and the 10 year treasury is up 3-4 basis point to 1.86%–probably heading to where we were a week ago before the middle east situation. The previous trading range on the 10 year was 1.87% to 1.94%.
Ptrader noted earlier today that Saratoga Investment (SAR) is calling the balance of their 6.75% baby bonds (SAB) on 2/7/2020. They had called most of the issue on 12/21 and now just 2 weeks later call the balance of just under 1 million shares (bonds). Looks like holders are going to take a 2% hit (more or less) on their holdings as shares last traded at $25.62.
Todays overnight repo by the Fed was a non event. Primary dealers submitted $47 billion in offers and the Fed accepted all of the securities offered.
The new METLIFE 4.75% perpetual is now trading and is pricing around $25.03 right now after opening the morning in the $24.96 area. The issue is trading OTC Grey market under ticker METFL.
I have noted some readers have bought some of the new issue of Southern Company 4.95% Jr Subordinated Notes. I assume they are buying off the bond desk as I see no OTC trading. This is a tricky one as there was a OTC Grey market ticker assigned, but later withdrawn. For those interested you might want to call the bond desk with the CUSIP.