Monday Morning Kickoff

The S&P500 traded in a weekly range of 3323 to 3397 before closing the week at 3348 which is a gain of just under 2% on the week after closing at 3298 the Friday before.

The 10 year treasury traded in a range of .64% to .72% before closing at just under .70%.

The Fed balance sheet fell by $37 billion last week–continuing a sawtooth pattern of weekly changes as the overall balance marches higher.

Last week the average $25/share preferred and baby bond gained 19 cents. Banks were the winners on the week with gains of 1%. Utility and CEF preferreds/baby bonds were near flat. Investment grade issues were up 15 cents.

Last week we had only 1 new income issues as Public Storage (PSA) priced a new low coupon preferred.

The issue is trading on the OTC grey market under ticker PSADL and closed last Friday at $24.80.

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8 thoughts on “Monday Morning Kickoff”

  1. I just heard that there is a proposal to delay all evictions until March of next year. That would hurt all kinds of real estate.

  2. Thanks Tim, I’m looking for a reversal in SPX in the 3440 – 3510 area. If it does not reverse there, we should take out the ATH. I do expect a reversal and lower prices ahead. Patience will get you better prices. 🙂

  3. A bunch of REIT’s are tanking today.
    out of the worst 3 performers in the S&P, 3 of them are REIT’s.
    EXR, O, and AMT
    is that something you see very often?

    1. Not a good day for covid vulnerable stocks. The Regal Cinema announcement is troubling. What I have noticed this morning is that while my REIT preferreds are okay, the underlying common are getting hammered. Maybe the rise in the 10 year rate has finally arrived?

    2. Justin–REITs can be pretty sensitive to rates–more so sometimes than preferreds.

      1. I was aware of that, but these three are really getting hit hard, even in comparison to other REIT’s, which are down about 1/2 a percent, where these are falling by 2-3%.

    3. I would think down 1% for those 3 would be expected and normal. Now if they were down 5+% I would call that a small correction. It was just a few weeks ago that we were all saying that prices were outrageous and there is nothing to buy. I wont be loading up on a 1% drop though on anything.

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