Monday Morning Kickoff

Here we go!!! Time for the 1st week of trading after the installation of a new President–no doubt these major changes could cause market dislocations–of course who really knows.

The S&P500 closed last Friday at 3841 which was about a 2% increase from the previous Friday–the S&P500 had lost about 1.5% the week before so all in all in 2 weeks not much movement.

The 10 year treasury barely moved last week closing the week at 1.09% –1 basis point lower than the previous Friday. The range for the week was 1.08% to 1.12%.

The Federal Reserve balance sheet grew by a stout $81 billion last week to a new record high of $7.415 trillion.

The average $25 preferred stock and baby bond moved higher by 12 cents. Investment grade moved up by 14 cents, while banks moved higher by 9 cents. CEF preferreds crept up 4 cents with mREITs up by 13 cents.

Last week we had 2 new income issues sold.

1st off financial firm B Riley (RILY) sold a new issue of baby bonds with a 6% coupon. I am not aware of any exchange trading of this issue at this point in time–but should trade within a day or two.

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Bank of America (BAC) sold a new non cumulative preferred stock with a rock bottom coupon of 4.125%.

The issue is trading on the OTC grey market under temporary ticker BOAPL. The issue closed at $25.03 last Friday.

Prior to making any buying decisions investors should review all of the preferred issues outstanding from BAC which can be seen here.

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10 thoughts on “Monday Morning Kickoff”

  1. Given where the other RILY preferred series are currently trading, its hard to see how RILYT stays above par value.

    1. CW – And you’d be right it seems… Trading under CUSIP 05580M835 last trades = 24.97

  2. Tim… Samsung,, has a preferred, Don’t see it anywhere …or is that the big one coming…

      1. That took me a minute.I believe the actual line was…”This is the Big One, Elizabeth, I’m coming to join you!”

        1. As long as we’re doing quotes, I mention this favorite of mine from Einstein:

          “Only two things are infinite, the universe and human stupidity, and I’m not sure about the former.”

          I see proof of his wisdom every day.

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