Here we go again–another week that is bound to be exciting as the stock markets are at record highs–party on!! Forget the massive debts of the U.S., the weak economy in Europe and now in China–all that matters is that the markets have a “Fed Put” to make sure all goes well (just joking here-kind of).
Last week the S&P 500 moved to record highs closing the week at 3014 which was the high of the week. The low for the week was 2963 so the index was up over 1% for the week.
The 10 year treasury traded in a range of 2.01% to 2.12% before closing the week near the high of 2.11%. The 10 year treasury had been trading under 2% the week before, but strong employment numbers that week put an end to the fall in rates-for now. Core consumer inflation numbers came in a bit hot last week at +.3% which helped to hold interest rates up from the prior week as well.
The Fed balance sheet rose by $2 billion last week, which is kind of the normal trend – fall for 3 weeks and then have 1 week of a slight rise.
The average $25/share preferred stock and baby bond moved higher by another 5 cents to close at $25.04. There are now 170 issues trading at $25 or below compared to 179 last week and 206 the week before.
Once again we had no income issues announced for the 2nd week in a row.
Bank of America did announced the redemption of their BAC-W non cumulative preferred issue on 9/9/2019–the 1st date it is callable. This issue has a 6.625% coupon–no surprise they would redeem this issue.