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Monday Morning Kickoff

Overall it was a relatively quiet week last week. The S&P500 moved in a range of 4343 to 4418 a range of less than 2%. The close was right near the high at 4415 a gain of 1.3% from the close the previous Friday.

Interest rates remained muted as compared to a few weeks ago. The 10 year treasury traded in a weekly range of 4.50% to 4.67% – closing at 4.63% on Friday. Economically speaking there was not too much important news during the week so rates are looking for direction.

This week we have important economic news which may move markets substantially. We have the consumer price index (CPI) on Tuesday and the producer price index (PPI) on Wednesday. We also have retail sales being reported and numerous housing reports. Then of course we have the typical political fights in Washington and a looming government shutdown. Lastly we have a seemingly never ending stream of Fed yakkers.

The Federal Reserve balance sheet moved lower by $44 billion–the balance sheet assets now stand at $7.87 trillion.

The average $25/share preferred stock and baby bond moved lower last week after a massive rally the previous week. The average share fell 21 cents with investment grade issues falling 30 cents, banks off 15 cents, mREIT preferreds off 9 cents and shipping preferreds off 11 cents.

Last week we had business development company New Mountain Finance price a new issue of baby bonds. The issue carries a coupon of 8.25%. I don’t find it trading at Fido or eTrade, but some folks have noted it is trading.

2 thoughts on “Monday Morning Kickoff”

  1. Feds yakking 19 times in coming days- makes me wonder if they will be trying to support an unpopular move, or are they really divided?

    I suppose they get paid well for some of these open mouth events.

  2. Owned NMFC common for several years now. Common price has hardly budge through all the commotion of the last six years minus Covi. Probably down to a $0 dca, and I’ve stopped looking at their financials. Glad the BB made the Baa3 grade. Hope all is well with them, but I don’t have a reason to pick up the BB over more of the common when the common has higher divi… unless the bond drops enough to make the capital gains worth it.

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