Monday Morning Kickoff

The S&P500 traded in a range of 2969 to 3068 before closing on Friday at 3044 which is around 3% higher than the previous Friday–party on.

The 10 year treasury moved in a range of .648% to .72% before closing at the low of .648%.

The Fed Balance Sheet moved higher by $58 billion which is only about 1/2 of the week before when we saw it grow by $103 billion.

The average $25/share preferred and baby bond moved almost 2% higher last week with shipping moving 3% higher, mREIT preferreds moving 2% higher. Lodging REITs were the biggest movers higher with a gain of around 20% (not on this chart). As quality issues (CEF, banks etc) slow in gains investors are rotating to low quality issues which have been laggards.

Last week we again had 3 new income issues ($25 issues) come to market.

Scorpio Tankers (STNG) announced a small issue of 7% senior notes. I don’t find this trading yet but would expect it to trade this week.

This image has an empty alt attribute; its file name is stngbb.png

Southern Banker Hancock Whitney (HWC) sold a new issue of subordinated notes. I don’t find this trading yet but would expect it to trade this week.

This image has an empty alt attribute; its file name is hwcpz-1.png

Lastly Tennessee banker Pinnacle Financial (PNFP) sold a 6.75% non cumulative preferred. Shares are trading on the OTC Grey market under ticker PNFPB and last traded at $25.60.

Disclosure–I did buy some shares of the Pinnacle offering–likely to hold until a 1-2% gain is realized.

This image has an empty alt attribute; its file name is pinnacle.png

4 thoughts on “Monday Morning Kickoff”

  1. I continue to be awestruck that our Treasury Department doesn’t sell any significant amount of long term debt. I wonder how the rate for US 40 year bonds would compare with Amazon? Hopefully less?

  2. So I got my daily email from my Guru at Schwab this morning. AMAZON is coming out with a new bond issue and of course different tranches. Are you ready for this???? The 30 Year is 2.1% and the 40 year is 2.2%. I asked him if he was “serious” or just joking, his answer was I’m serious. On a completely different note today is the first day in well over 25 years I had to actually turn off CNBC. When they were interviewing Robert Johnson who might be the nicest guy and smartest guy in the world, but about half way thru it it just got so ludicrous and ridiculous I just had to change channels.

    1. The yield on Amazon makes sense. It’s rated AA-, so the yield is a direct spread over treasuries, buying Amazon bonds will be seen as pretty much as safe as it gets for a corporate issue. 2.1% for 30 years vs 1.4% on same maturity treasury will thus attract many buyers.

    2. The headline was sad, 16 trillion in reparations needed. When it comes to needing money to ‘fix’ something, like fixing our schools,…there will never be enough.

Leave a Reply

Your email address will not be published. Required fields are marked *