Here we go again–no doubt there will be excitement in the week ahead. The S&P500 traded in a range of 2945 to 3007 before closing on Friday at 2962.
The 10 year treasury traded in a range of 1.63% to 1.74% and closed the week at 1.67%.
The Fed Balance Sheet grew by $13 billion. This is on top of the $75 billion the week before which was cause by overnight reverse repurchase agreements the Fed executed to add cash to the banking system. The most recent growth is caused by 14 day reverse repurchase agreements that the Fed executed. Essentially we have a QE operation going on–the Fed is taking Treasuries for the most part as collateral–but they are also taking some mortgage backed securities. The most recent overnight interest rate was around 1.80% on the repo’s.
Last week we had a number of new income issues come to market,
BDC Pennant Park (PNNT) sold a new baby bond issue with a fixed rate coupon of 5.50%. The issue has a maturity date in 2024. The issue is not exchange trading at this time, but we show a ticker of PNNTG on both eTrade and Fidelity. I believe from what I have seen off market the issue is trading around $24.90.
REIT Gladstone Commercial (GOOD) has priced a new monthly pay perpetual preferred with a coupon of 6.625%. The issue is trading under OTC temporary ticker GLSDP and closed the week at $25.66–obviously this is a popular issue. Disclosure, we own this issue, purchased at $25.19.
mREIT AGNC Investment (AGNC) has sold a new issue of fixed-to-floating rate preferred with an initial fixed rate of 6.50%. The issue is trading on the OTC Grey market right now under ticker temporary ticker AGNIP in the $24.90 area.
REIT Urstadt Biddle (UBP) has sold a new issue of fixed rate preferred with a coupon of 5.875%. The issue is trading on the OTC Grey market right now under ticker UTBPP and last closed around $24.81.