Last week was little better week for stocks as the SP500 opened the week around 2840 and hit a high in the 2888 area before closing at 2859–up a bit for the week.
The 10 year treasury moved in a narrow range of 2.37% to 2.42% before closing out the week at 2.39%.
The FED balance sheet fell but a large $28 billion last week which continues a trend of small weekly changes with 1 large drop each month which still total in the $40 to $50 billion a month runoff. With interest rates falling seems like a good time to let the runoff continue. We note that the balance sheet stands at $3.864 trillion in assets, which is only $114 billion above an earlier predicted runoff goal–of course this is no true goal number an as data changes so will runoff goals.
The average preferred stock and baby bond ended last week at $24.83 which is 7 cents above the previous weeks close (the 2 week change is exactly ZERO). There are now 207 $25 issues selling for $25 or less–this number grows smaller each week, but it’s a long ways from the 72 issues we hit last fall.
Last week we had Algonquin Power and Utilities (NYSE:AQN) announce a new 6.20% baby bond with a fixed to floating rate coupon. It is fixed until 7/2024.
Tectonic Financial announced a new 9% fixed to floating rate preferred–the initial coupon should give one an idea of the quality of this issue. The company is not publicly held. The final prospectus for this issue can be seen here. The preferred will have a ticker of TECTP–we have not seen a OTC ticker on this one.