Here we go on another week, with the 10 year treasury ending last week at around the 2.60% mark. It looks to me like this yield is going to move into the 2.50%’s this week if there is any whiff of economic weakness or movement lower in equities.
The average preferred stock crept higher by a nickel or so last week. It looks like while preferreds are creeping higher they are less inclined to move sharply higher irrespective of the movement in the 10 year treasury. There are 195 preferred issues trading at $25/share or less now as compared to 194 issues last week.
The FED balance sheet grew by $2 billion last week, which is the 1st time in about 5 weeks that the balance sheet grew. For the week ending 2/16 it also had grown by $2 billion.
Last week we had 4 new income issues announced.
Container leasing company Triton International (NYSE:TRTN) priced a new 8.50% perpetual preferred. The issue is trading on the OTC Grey market under ticker TPNRF and last traded around $25/share. The issue is unrated.
Insurer American Financial Group (NYSE:AFG) sold a new baby bond with a coupon of 5.875%. This issue is investment grade. The shares (bonds) will trade under ticker AFGB. The issue is “queued” up in eTrade but no trading has occurred.
Brookfield Property Partners (NASDAQ:BPY) has priced a new issue of perpetual preferred units with a coupon of 6.50%. The units are rated a notch under investment grade. The shares are trading under OTC Grey market ticker BRKPF and last traded at $24.80/share.
Lastly, very late in the week, Merchants Bancorp (NASDAQ:MBIN) , a smaller Indiana banking company, announced they were selling a perpetual issue of fixed-to-floating rate preferreds. Pricing of the shares has not yet been announced.