Last week was an exciting week for stocks as they tumbled on a number of days based upon the lack of visible progress on the trade front. The S&P 500 moved in a range of 2831 to 2934 before closing the week at 2882–off almost 2% on the week. The 10 year treasury moved lower most of last week trading in a range of 2.43% to 2.50% before settling on the week at 2.45%.
The Fed balance sheet rose by $3 billion last week after plunging lower by almost $40 billion the week before. It is obvious that the interest rate markets are just fine without bunches of new demand from the FED.
The average preferred stock and baby bond moved to $24.76 which is 7 cents lower than the week before. There are 222 issues trading at $25 or below–compared to 225 the week before.
Last week we had 2 new issues announced–but details had been limited. Tectonic Financial and Federal Agricultural Mortgage (FarmerMac) (NYSE:AGM) both announced that they would be issuing new preferred stock, but as of last Friday had not released details. FarmerMac announced they would be calling their 6.875% AGM-B issue with the proceeds of a new preferred stock. Holders of the “B” shares will take a bit of a hit on the call as shares had traded as high as $26 the last few days.