Last week was another difficult week–in particular in the interest sensitive issues such as preferred stocks and bonds of all sorts.
The S&P500 fell by almost 3% last week – trading in a range of 4223 to 4394 closing right near the low of 4224 – 126 points below the close the previous Friday.
The 10 year treasury traded as high as 4.99% before backing off on Friday and closing the week at 4.92%. The range for the week was 4.66% to 4.98%. Economic news was generally stronger than anticipated with the exception of the leading economic indicators (LEI) which continue to point to softness ahead–we’ll see.
This week we won’t have Fed yakkers as they are in their self imposed quiet period ahead of the FOMC meeting which takes place on 10/31-11/1. There is plenty of economic news this week with the most important being the personal consumption expenditures (PCE) which is being released on Friday.
The Fed balance sheet fell by $19 billion last week as the run off got back to near normal – although on a 2 week running basis it is much below norm–looking for big runoffs in the next week or two.
The average $25/share preferred and baby bond fell by 26 cents last week, investment grade issues fell 29 cents, banks by 27 cents, mREITs by 27 cents and shippers fell just a dime. Prices are now at their lowest level since at least 1/1/2022 (they were previously lower, but my data now goes back just to 1/2022)–almost 2 years.
Last week we had Carlyle Credit Income Fund price a new term preferred issue with a coupon of 8.75%. The issue finally had a OTC temporary ticker assigned Friday as CARFP. I have not seen trading at this point in time–although it may be trading.