Monday Morning Kickoff

After 1 week with soft equity prices the S&P500 bounced back strongly last week. The index rose by near 3%—a record closing week.

The 10 year treasury closed the week at about 1.54% with a rise of 4 basis points on Friday. The argument on whether the current inflationary environment is transitory or not continues–seems like more and more folks are coming over the ‘not transitory’ side of the debate. Obviously interest rates have not reacted to the upside much – yet.

The Federal Reserve balance sheet grew by $37 billion last-no surprise-forever higher.

The average $25/share preferred stock and baby bond moved higher last week by 6 cents. Investment grade issues moved 2 cents higher, banks 4 cents higher and mREITs preferred moved 15 cents higher.

We had 4 new income issues priced last week–all 4 issues are perpetual preferreds.

Gladstone Commercial (GOOD) sold a 6% perpetual preferred. The issue is trading on the OTC grey market under temporary ticker GSCCV and closed last Friday at $25.41

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Hard money lender and REIT Sachem Capital (SACH) sold a new perpetual preferred issue with a coupon of 7.75%. The issue is trading now under ticker SCMCV on the OTC grey market and closed last Friday at $24.66.

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Lodging REIT Chatham Lodging Trust (CLDT) sold a perpetual preferred with a coupon of 6.625%. Trading on the OTC grey market has begun under ticker CLDTV and the issue closed last week at $25.59.

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Lastly utility CMS Energy (CMS) sold a perpetual preferred issue with an investment grade and a 4.20% coupon. The issue is trading on the OTC grey market under temporary ticker CMSEV an closed last week at $25.17.

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3 thoughts on “Monday Morning Kickoff”

  1. Treasury rates went way up. Then consolidated by a much smaller amount. Leaving some analysts trying to explain the “downtrend” . Call them Mr Short Term Memory.
    I had the same reaction when Silver doubled and then consolidated by a much smaller correction. Analyst had all kinds of excuses for Silver “crashing”. and Gold to a lesser extent.

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