In one of the “wildest” weeks of the year in common stocks the S&P 500 traded in a range of 2822 to 2939—about a 4% range. It had opened the week at 2898 and gyrated around before closing the week at 2619.
The 10 year treasury gyrated as well trading in a range of 1.59% to 1.79%–a very large range, before closing at Friday at 1.73%. Recall it was just 2 weeks ago that the 10 year closed the week at 2.08% so at the low of last week it was off 40 basis points.
The average $25/preferred stock and baby bond closed at $25.26 which is movement up of 1 penny from last week. There are 149 issue trading at $25 or below–this is 10 more issues than the previous week.
The Fed balance sheet grew by $2 billion last week. Recall that Fed Chair Jay Powell has announced an end to quantitative tightening (the end of the runoff)–we will follow this for a while to make sure that is the case. Recall that the Fed balance sheet hit a high of $4.51 trillion back in 2015 (it was less than a trillion in 2009) and then the runoff began which took us to the current level of $3.78 trillion.
We had 2 new income issues announced last week.
Aspen Insurance Holdings (NYSE:AHL) announced a low investment grade fixed rate preferred with a coupon of 5.625%. The issue is trading on the OTC yet under ticker AHLNF and last traded at $25.20.
New Residential Investment (NYSE:NRZ) sold a new issue of fixed-to-floating rate preferred with an initial coupon of 7.125%. It is trading under the OTC ticker of NRZEP and last traded at $24.99.