The S&P 500 continued down the road of losses last week with a loss of about 3% last week as trade tensions continue to upset the apple cart. The 10 year treasury closed at the low for the week at around 2.14% after being as high as 2.30%.
The Fed balance sheet fell by $ 9 billion last week $9 billion last week which is a running 3 week total of $51 billion.
The average preferred stock and baby bond fell by 9 cents last week, to $24.76, as the falling stock market affected these prices in spite of the tumbling interest rates. There are 233 issues trading at $25 or below as compared to 207 2 weeks ago–obviously we are getting a little set back in here on preferred stocks and baby bonds.
We had no new income issues announced last week, but finally the Algonquin Power and Utilities 6.20% baby bonds began trading under ticker AQNB. This is a large issue of 14 million shares (bonds) and 12 million were reserved for institutional purchase with just 2 million coming to the retail side. The shares closed the week at $25.47.
This should be an interesting week with all the politically induced movements going on and the on going debate as to whether the economy is weakening. Will interest rates continue to move toward the 1 handle range? And if they do what exactly does that mean?