Monday Morning Kickoff

Once again the S&P500 moved higher last week. You can’t fight the Fed-it is proven week after week. The index moved up by 1.2%. Any set back is bought and there is no reason to believe this will change anytime soon.

The 10 year treasury moved in a Goldilocks fashion. Opening the week at 1.65% and ending the week at 1.58% after a huge miss in new jobs created in April.

The Fed balance sheet moved higher by $30 billion after a weeks hiatus of moving higher.

The average $25/share preferred stock and baby bond moved higher by a 7 cents. Investment grade moved up by 12 cents and mREIT preferreds by 12 cents. This is the 5th week in a row that the average price has moved in a 10 cent range.

We had 5 new income issues price last week.

Closed end fund Aberdeen Income Credit Strategies (ACP) priced their new issue of preferred stock with a coupon of 5.25%. The issue shot higher immediately and closed last week at $26.10 after trading as high as $26.42. The issue is trading under OTC grey ticker ACPPP.

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CEF Priority Income Fund (not publicly traded) priced their new issue of term preferred with a coupon of 6%. The issue is now trading under OTC grey ticker PRIFH and closed last week at $24.88.

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Carlyle Group (CG) priced a new investment grade baby bond with a coupon of 4.625%. The issue is not yet trading, but likely will start trading sometime this coming week.

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Babcock and Wilcox Enterprises (BW) sold a new issue of preferred stock with a coupon of 7.75%. The issue is trading OTC grey under ticker BWCXP and closed last week at $24.75.

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Lastly lodging REIT Pebblebrook Hotel Trust (PEB) priced a new issue of perpetual preferred stock with a coupon of 6.375%. The issue is trading under OTC grey market ticker PEBHP and closed on Friday at $25.40.

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One thought on “Monday Morning Kickoff”

  1. KREF selling shareholder secondary offering. Should come about 4% discount to last trade. Any thoughts?

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