The S&P500 was off by as much as 1.5% during holiday shortened trading last week before closing at a record high – up about .4% on the week.
interest rates continued their move to lower yields. The 10 year treasury closed at 1.356% on Friday which was 7-8 basis points lower than the previous Friday. Never ending global demand as well as the Fed QE continues to push rates lower.
The Federal Reserve balance sheet moved higher by $19 billion on the week–always a stair step higher—down a week and up a couple weeks.
Last week $25/share preferred stocks and baby bonds moved a bit higher–up 9 cents/share. Investment grade moved 2 cents higher with banking preferreds up 4 cents. The average current yield is 6.21%.
Last week we had 3 new income issues priced.
RenaissanceRE Holdings (RNR) priced a new 4.20% non cumulative perpetual preferred. The issue is trading now on the OTC grey market under ticker RNRRP (changed from the ticker shown below) and closed on Friday at $25.41.
Affiliated Managers (AMG) sold a new issue of subordinated notes with a coupon of 4.20%. Being a debt issue there is no OTC grey market trading and this issue is not yet being exchange traded.
Lastly coal company Ramaco Resources (METC) sold a new issue of Senior Notes with a coupon of 9%. There will be no OTC grey market trading. the pricing term sheet can be read here.