Monday Morning Kickoff

For the 2nd week in a row we have seen equity prices move in a fairly tight range. The S&P500 moved up by a meager 1/3rd of a percent. This leaves the index just about 1/2% off a record close. Once again I think we have the potential for an explosive end to the year. With a Fed head to be named and congress spending money like crazy people we could see something big happen in markets–up or down I have no idea–I guess we will see within weeks.

The 10 year treasury ended the week at 1.54% which was off 4 basis points on the week. Global investors continue to see value in the U.S. Treasury–they will have a chance to prove themselves through investing in treasury’s in the weeks ahead as the Fed cuts back on their purchases by $15 billion immediately with more reductions in the months ahead (if they stick to their plans).

The Federal Reserve balance sheet grew by $11 billion to a new record high of $8.67 trillion.

Last week the average $25/share preferred stock and baby bond lost ground being down 10 cents, Investment grade issues fell by 16 cents and banks by 11 cents. The only sector to gain ground was the shipping preferred which rose by 4 cents.

Typically I would put the chart of sector prices here, but this week will have to forgo the chart as I remain out of the office and don’t have the ‘tools’ I need for the chart.

Last week we had many new issues announced–7 in total

First Republic Bank (FRC) sold a non cumulative preferred stock with a coupon of 4.50%. The issue is trading on the OTC now under ticker FRCDV and closed on Friday at $25.00.

CLO owner Eagle Point Credit Company (ECC) announced a perpetual preferred with a monthly payer with a 6.75% coupon. No OTC ticker has been announced as of this moment.

mREIT New York Mortgage Trust (NYMT) announced a new 7.00% perpetual preferred issue. The shares are trading on the OTC market under ticker NYMGV and closed on Friday at $24.45.

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Finance company Atlanticus Holding Corp (ATLC) sold a new baby bond with a coupon of 6.125%. The issue will trade on NASDAQ soon under ticker ATLCL.

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Bitcoin mining company Argo Blockchain (ARBK) sold a new issue of baby bonds with a coupon of 8.75%. The issue will trade on NASDAQ–but has not traded yet.

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Closed end fund (CEF) RiverNorth/Doubleline Strategic Opportunity Fund (OPP) sold a new perpetual preferred with a coupon of 4.75%. The issue is trading on the OTC now under ticker OPPBV and closed on Friday at $24.98.

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Utility company DTE Energy (DTE) sold a new issue of baby bonds with a coupon of 4.375%. The issue is not trading as of this time.

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