Our site runs on donations to keep it running for free. Please consider donating if you enjoy your experience here!

Monday Morning Kickoff

Well another sizable up day is in store in the equity markets today–with all of the futures markets up over 1%. There is so much liquidity sloshing around in the ‘system’ —so much in fact that even the Fed is adding no new money in the last 4 weeks.

The S&P500 traded in a holiday shortened week between a low of 3000 to a high of 3166 before closing last Thursday at 3130 a gain of just over 4%.

The 10 year treasury traded in a range of .63% to .72% before closing the week at .67%.

3 month Libor closed last week at .30%–it was 2.31% 1 year ago.

The Fed balance sheet fell by $13 billion last week – which gives us a total reduction in assets of over $100 billion in the last 3 weeks. Proving that the liquidity in the system must be extremely good the REPO markets remain quiet–most days seeing overnight operations of 0-$7 billion last week. There was 1 day that had a $17 overnight repo–but still quiet relative to a month or two ago when we were seeing overnight REPO operations of up to $75 billion or so.

The average $25 preferred and baby bond gained 7 cents in value last week–the quietest week we have seen for months. Every sector rose except for mREITs which fell by 18 cents/share. REIT lodging issues shares rose by 26 cents/share. Virtually all other sectors rose by around 5-10 cents.

Once again the new issue market was very quiet as there were no new issues announced.

The new Saratoga Investment (SAR) 7.25% baby bonds began to trade under ticker SAK and closed the week at $24.93.

Leave a Reply

Your email address will not be published.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