Monday Morning Kickoff

In a continuation of the melt up in equities the S&P500 traded in a range of 3032 to 3212 last week before closing Friday at 3194–a huge gain on Friday capping off a gain on the week of over 5%.

The 10 year treasury moved much higher last week closing at .9%–the highest closing level since 3/20/2020.

The Fed balance sheet moved to a level of $7.17 trillion which was up $68 billion from the week before.

The average $25 preferred and baby bond moved higher by 66 cents–2.5%. As you can see below mREIT preferreds moved $1.61 higher, lodging REIT preferred were $2.89 higher while investment grade, which had already been much higher over the last number of weeks, moved just 13 cents higher.

Last week we had 3 new income issues announced (as well as 1 reopening).

Virginia banker Atlantic Union Bankshares (AUB) priced a new non-cumulative issue with a coupon of 6.875%. The shares are trading on the OTC grey market under ticker AUBKL and last traded at $25.

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United Community Banks (UCBI) priced a new non-cumulative preferred issue with a coupon of 6.875%. Now trading on the OTC grey market under ticker UCBKL and this issue also closed the week at $25.

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Lastly annuity provider Athene Holding (ATH) sold a new issue of non-cumulative preferred that is a fixed-rate reset, with coupon reset every 5 years. The issue carries a 5.97% spread which will be helpful in the out years.

The issue is trading on the OTC grey market under temporary ticker ATHHL and last traded at $25.40.

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14 thoughts on “Monday Morning Kickoff”

  1. I bought small position in both (100 shares) . Both banks seem like they have good plans to handle the pandemic and both seem like things were moving in the right direction before March.

  2. Still holding RPT-D which I recommended here last month at 28-29. Now at 43 and still rising. Goes ex next week.

    1. Yep, I remember that I bought a bit at your recommendation. It was a great shot, thanks for the tip.

    1. You can buy the Hancock Whitney bond with the CUSIP at Schwab….and maybe other brokers.

    2. kapil–guess one needs patience on this one–I don’t see it trading anywhere.

  3. does the fact that all the new issues were “non-cumulative” give you pause before investing?

    1. Nope….banks usually issue non-cumulative – as do REIT’s, for varying purposes

    2. The ‘noncumulative’ feature certainly gives me pause Buck, to the point where I try to avoid those issues altogether…but I think banks are required by regulation to do that. It would be interesting to find out how many companies have suspended their noncumulative dividend and what the end result was for investors in the underlying security.

    3. Surely! By purchasing non-cumulative you assume all risks of the issuer without any guarantee of reward.

  4. Spire Missouri Inc. Announces Commencement of Tender Offers for Any and All of Its First Mortgage Bonds, 7% Series Due 2029, 7.90% Series Due 2030, 6% Series Due 2034, 6.15% Series Due 2036 and 4.625% Series Due 2043

    Dow Jones Newswires June 08, 2020 08:45:00 AM ET

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