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Monday Morning Kickoff

NOTE–last week was a most frustrating week for me. I was away from the office and had forgotten my laptop charger at home. In normal times–no problem–just find a Best Buy or Walmart and pick up a new one—but I found out there were none to be had (at least the one I needed)–thus for 3 days I was ‘off line’. This was the 1st time in 15 years of publishing when I had no true workable internet access–I had iphone access, but doing anything of substance was simply impossible. Certainly the next time I leave the office for a few days I will be taking multiple devices just in case of issues.

Last week the Standard and Poor’s 500 rose by just over 1/2%—all of the gain coming on Friday after the most recent employment report which showed a gain of 559,000 jobs with the unemployment rate falling by a healthy .3% to 5.8%.

In spite of a relatively strong employment report interest rates fell to close the week at 1.56% (as represented by the 10 year treasury)–a drop of 6 basis points just on Friday. The previous week had closed at 1.58%.

The Federal Reserve balance sheet jumped by $32 billion last week to a new record high of $7.935 trillion.

The average $25/share preferred and baby bond rose by 15 cents last week. Investment grade issues rose 18 cents, banks 16 cents and mREIT preferreds up 6 cents.

Last week we had 3 new income issues priced.

Ready Capital (RC) sold a new 6.50% perpetual preferred which is trading under the OTC temporary ticker of RCPPP and closed on Friday at $25.35

The pricing term sheet can be read here.

Terra Property Trust (not publicly traded) sold a 6% note issue with a short dated maturity in 2026. The issue is not trading as of yet.

The pricing term sheet can be read here.

Investment grade insurer Arch Capital Group (ACGL) sold a new non cumulative preferred issue with a coupon of 4.55%. The issue is trading on the OTC grey market under ticker ACGLL and closed on Friday at $25.27.

The pricing term sheet can be found here.

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