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Monday Morning Kickoff

Well we had one heck of a party in both stock and bond markets last week based on a Fed Funds rate hike pause as well as some weaker data on employment and news of treasury issuance. It is somewhat doubtful that we can followup last week this week – but if we can trade flat I will be more than happy.

The S&P500 traded in a range of 4133 to 4374 closing near the high at 4358–a gain of 241 points from the previous Friday – a gain of 5.9%. Wow–seems like an overreaction, but of course the markets always overreact in both direction.

Interest rates (the 10 year treasury) plunged, but traded in a range of 4.48% to 4.92%. The close of 4.56% was almost 30 basis points below the close the previous Friday which was 4.85%. This morning the 10 year is up 3 basis points at 4.59%. There is minimal economic data being released this week so maybe we will trade in a modest range this week (famous last words).

The Fed balance sheet assets fell by $40 billion to now stand at $7.867 trillion. Seems like the pace of runoff remains fairly consistent with the $95 billion monthly target.

As we have all discussed the average $25/share preferred stock and baby bond had a bang up week. The average share moved 82 cents higher with investment grade up a stellar $1.22!! Banks were up 87 cents, mREIT preferreds up 76, CEF preferreds up 30 cents and shippers up just 15 cents.

Last week we had no income issues priced.

5 thoughts on “Monday Morning Kickoff”

  1. A BDC came to market, new mountain finance. They only had to pay 8.25 fixed!

    Has anybody ever heard of them? Baa3 5 year maturity

    1. Not a BDC that I am familiar with. But my cursory review of them has me intrigued and I may be interested once it starts trading depending on where it trades at.

      Not paying any premium for it but it has my attention if it trades under par

  2. Tim ….Still Buying….Bargains…. AA , Aa rate preferreds the dividents are rolling in… and now buy backs.. Ty . Tim… Georges..

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