Monday Morning Kickoff

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.

8 thoughts on “Monday Morning Kickoff”

  1. Tim,

    Thank you for the heads up on GOOD new preferred. I managed to get half a position at 25.20.

    I made some very nice gains from the great content and discussions on this site and I know the issue of contributing a nominal fee was discussed. In the spirit of paying it forward may I propose an idea, how about letting us know some of your favorite charities and we could contribute to them instead?

    1. This site is invaluable. I turned off my ad blocker for this website but it does not appear that this site is ad supported or has ads. I’d be happy to have ads displayed as a contribution toward the site and maybe there could be a premium offering for people who don’t want ads.

  2. Looks like investors are gradually rotating out of AGNCM into AGNIP. If it goes any further I’m going to do the reverse trade into M.

    1. Did a quick turn around from Friday’s close. At this instant (1:20PM) the M is the better issue.

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