The DJIA traded in a range of 25,372 to 25,950 before closing Friday at 25,928.
While the DJIA is ‘partying on’ the interest rate complex is signaling caution ahead. The 10 year treasury traded in a range of 2.36% before closing just over 2.40%. We have a conflict in these numbers and we side with the interest rates markets in believing that investors have to be cautious.
The FED balance sheet fell by $8 billion last week–a logical person would think that the FED will let the runoff continue as long as the bond market is signaling lower rates.
The average preferred stock rose by 12 cents last week–with tremendous volume the last few days of last week as funds were likely rebalancing. We now show 182 preferred stock issues trading at $25/share or below.
Last week we had 4 new income issues priced.
Duke Energy (NYSE:DUK) priced a new perpetual preferred with a fixed rate coupon of 5.75%. This is a nice investment grade utility issue. The issue is trading under the OTC ticker of DUEKL and trading around $25.47.
MLP NGL Energy (NYSE:NGL) priced a new perpetual fixed-to-floating rate unit with an initial fixed rate coupon of 9.625%. The issue is trading on the OTC market under ticker of NGLPP and last traded at $25. This partnership will issue a K-1 at tax time.
BDC Oxford Square Capital (NASDAQ:OXSQ) sold a new issue of baby bonds with a coupon of 6.25%. The issue is not yet trading (as far as we can see), but should be trading sometime this week.
Lastly IberiaBank (NASDAQ:IBKC) sold a new perpetual preferred flixed to floating rate issue with an initial coupon of 6.1%. The issue is trading around $25.09 under the OTC Grey market ticker of IBBRL. This issue has the quirky feature of paying only 2 dividends per year–until it reaches the floating rate period in 2024 at which point it will begin to pay quarterly.