Monday Morning Kickoff

The S&P500 had another down week last week–but not by much as a frantic rally on Friday helped the week. The index had a low of 3209 with a high of 3320 before closing the week at 3298 which is 2/3% lower than the Friday before.

As has been the norm for weeks (if not months) the 10 year treasury closed at .66% with the yield running between .65% to .69% on the week.

The Fed balance sheet continued its climb adding $27 billion in assets after adding $54 billion the week before.

The average $25/share baby bond and preferred stock closed last week 15 cents lower than the week before–the losses would have been 27 cents/share, but a rally on Friday moved prices higher. CEF preferreds fell by 47 cents–the big loser on the week. Utility issues fell by 9 cents, banks by 7 cents and investment grade by 10 cents.

Last week it was relatively quiet in the new issue arena with just 1 baby bond issue announced–no preferreds were offered.

DTE Energy (DTE) sold the only issue last week.

The Junior Subordinated Debentures were priced at 4.375%

No ticker has been announced. It is likely this issue will start trading this week.

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6 thoughts on “Monday Morning Kickoff”

      1. EarlyBird – PSA issued PSA+M a month ago at 4.125% and now sports a yield of 3.98%.

        Wouldn’t be shocking at all if PSA+N is the first non-convertible REIT preferred ever issued with a yield below 4%.

        Like all of us, I’m having to put more and more un-invested cash to work in order to get the same amount of income I need to pay the bills. The capital gains are nice on some of these preferred redemptions (just had large positions in 5.875% DLR+G and 8% UMH+B called from me), but the perpetual ZIRP attitudes at the Federal Reserve are making this environment beyond challenging for yield investors.

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