Monday Morning Kickoff

Last week was a rare down week for the S&P500 as the index fell by 1.4%. The index had been down over 4% midweek as ‘hot’ inflation numbers were released–but by late in the week investors were moving prices ahead again.

In spite of hot inflation numbers interest rates moved only 6 basis higher on the week with the 10 year treasury closing at 1.635%, although earlier in the week it had hit 1.70%

The FED balance sheet grew by $20 billion last week -it is the never ending stair step heading higher.

The average $25 preferred and baby bond fell in price by 26 cents last week. During the course of the week prices were off in the 40 cent area, but bounced back some before the week ended. Investment grade issues fell by 37 cents–a typical move as lower coupon issues fall more than higher coupon issues. mREIT issues fell by 9 cents and shipper preferreds fell by 8 cents.

Last week we had 6 new issues announced but only 5 of the issues priced. The new baby bonds from BDC Great Elm Capital Corporation (GECC) have not priced yet.

US Cellular (USM) announced a new baby bond with a coupon of 5.50%. The new issue has not begun to trade as far as I can find.

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Lodging REIT Sunstone Hotel Investors (SHO) priced a new issue of preferred stock, in a ‘refi’ transaction, with a coupon of 6.125%. The issue is trading under OTC grey market ticker SNTHP and closed Friday at $25.25

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Oxford Square Capital Corporation (OXSQ) announced a new baby bond issue that priced at 5.50%. The issue has not begun to trade as far as I can see.

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Giant banker JPMorgan Chase (JPM) priced a new issue of non-cumulative preferred stock with a coupon of 4.625%. The issue is trading under OTC grey market ticker JPMLP and closed last Friday at $25.33

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Lastly commercial mREIT Acres Commercial Realty (ACR) priced a new issue of preferred stock late on Friday with a coupon of 7.875%. The issue trades today on the OTC grey market under ticker ACRDP.

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7 thoughts on “Monday Morning Kickoff”

  1. Tim –
    “US Cellular (USM) announced a new baby bond with a coupon of 5.50%. The new issue has not begun to trade as far as I can find.”

    I picked up 200 at $24.85 last week – Vanguard bond desk. Strangely enough, when I gave the guy the cusip, he said it’s at $25.35 but after calling around, he got it for $24.95 – unusual.
    Another reader picked up some like mid-week – also from Vanguard.

  2. Tim; In reference to the new issues, your new issues page has been very helpful the past few months. Thank you for creating it.

    1. Thanks Gary–now if we could get the various quote folks to update their tickers on a timely fashion.

    1. New Issue
      Brookfield Infrastructure Finance
      Symbol: BIP
      Anticipated Rating*: BBB- at S&P
      4mm $25 par Subordinated Notes due May 24, 2081
      5-5.125%

      1. UOP is redemption of BIP.PR.C, a Cdn 5.35% min rate preferred. Clean price was 25.29 on Friday, so some tears somewhere.

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