Monday Morning Kickoff

While last week felt like a dramatically down week for the S&P 500 it was NOT–the S&P 500 fell by a measly 7 points on the week–less than 1/10%. Of course the moves up and down were giant sized with 3% moves on Wednesday and Thursday. Right now the futures are indicating the S&P 500 down 2% to start the week.

The 10 year treasury traded in a range of 2.90% to 3.13% closing the week at 3.12%–up 22 basis points on the week. Markets don’t tolerate moves of this magnitude very well–speed kills (in driving and interest moves). At this moment the 10 year treasury is trading up 6 basis points from last week close at 3.18%.

The Fed balance sheet grew by $1 billion last week.

The average $25/share preferred and baby bond took a whack last week, as might have been expected, and was off 34 cents. Investment grade issues were the worst of the bunch as they fell by 58 cents. Banks fell 45 cents while mREITS fell by 44 cents. CEF preferred were pretty stable as shares fell by 16 cents–folks are moving into safety. Junky shippers fell just 5 cents.

Last week we had 1 new income issue price with Sachem Capital (SACH) coming back to the markets for a note issue. The new issue prices at 7.125% which is way above where they priced an issue in March–the March issue was at 6%. The new issue has ticker SCCF and will trade in a week or so (no grey market trading).

4 thoughts on “Monday Morning Kickoff”

  1. Tim.. New offerings, very weak , their is so many Preferred $ 3- 5.00 below , Par ..we received $ 3-5.00 plus interest up front..Georges

  2. PLEASE do your own due diligence my friends. When I see that Egan Jones is the only rating agency to review the companies credit and “real” risk level so investors are somewhat protected and they rate the bonds BBB+ 🤔🙃🤔 Look what other companies that are pricing/releasing 5 year maturing debt at and are also rated BBB+ as well are paying to borrow your money. “The Notes are rated BBB+ by Egan-Jones Ratings Company, an independent, unaffiliated rating agency. Egan-Jones is a Nationally Recognized Statistical Ratings Organization and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider. Egan-Jones is also certified by the European Securities and Markets Authority. A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time.”

  3. Ashford Hospitality Trust, Inc
    both preferred and common plummeted.
    preferred D down about 17% and common 9%. Did not find much info that could cause the drop except an article on seekingalpha. published today:

    Meme Traders Got Burned Buying Hotel REIT Ashford Hospitality Trust

    Anyone has any idea?

    1. Also on 5/6 trapping Value at SA:
      Ashford Hospitality: Flying Straight Into The Storm
      Looming debt service with rate increases – theirs is mostly floating.

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