Monday Morning Kickoff

Last week brought a plunge in the 10 year treasury yield as the yield started the week at 2.60% before plunging all the way down to 2.42% based primarily on further weakness in the European economy.

The average preferred stock rose again by 8 cents as the slow creep higher continues. There are now 192 $25 preferred stocks trading at $25 or below which is 3 issues fewer than the week before.

The FED balance sheet fell by $9 billion last week which continues the runoff. The smart folks seem to think we will see the runoff continue until the fall of this year–I guess we shall how the economy performs as the months go by.

Last week we had 3 new income issues announced.

Insurer Brighthouse Financial (NASDAQ:BHF) announced a new fixed rate perpetual preferred stock with a coupon of 6.60%. The issue is now trading on the OTC Grey market under ticker BHFLL and last traded at $25.25. This issue is investment grade (just barely) per S&P. Moodys and Fitch have it below investment grade.

Asset manager Affiliated Managers Group (NYSE:AMG) priced an issue of baby bonds with a maturity date in 2059 and a fixed rate coupon of 5.875%. The issue is investment grade. We do not see this issue trading as of yet.

Lastly American Finance Trust (NASDAQ:AFIN), a REIT, priced a new issue of fixed rate perpetual preferred stock with an coupon of 7.50%. The issue is trading on the OTC Grey market under ticker AFINP and last traded at $24.46–obviously the markets don’t think much of this issue. This issue is not rated.

In addition to the newly announced income issues, OFS Credit (NASDAQ:OCCI) announced pricing for their new Term Preferred issuance. The issue carries a coupon of 6.875% and pays monthly dividends. The issue is trading on the OTC Grey market under ticker OCCIP and last traded at $24.80.

Also Merchants Bancorp (NASDAQ:MBIN) priced their previously announced preferred issue with a coupon of 7%. The issue is set to trade on the OTC Grey market under the ticker MRBPP.

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