Here we go with what is sure to be an exciting week. We have a Federal Open Market Committee (FOMC) wrapping up on Wednesday with what is likely to be a 1/4% cut in the Fed Funds interest rate. Additionally we have the October employment report on Friday which always have the potential to move markets.
Last week the S&P500 moved in a range of 2991 to 3027 before finally closing the week at 3023–up 1% for the week. The 10 year treasury moved in a range of 1.73% to 1.84% closing near the highs on Friday.
The Fed balance sheet moved up only $2 billion last week–so the slowest growth we have seen since early September, although given their recent actions we should expect further building in assets.
Last week we had a couple of new preferred issues announced.
Citizens Financial Group (CFG) sold a new perpetual preferred with a coupon of 5%. The issue is trading with a OTC ticker of CFGZL and shares closed at $25.15 last week. The issue is non cumulative, but qualified.
PS business Parks (PSB) sold a new perpetual preferred with a meager coupon of 4.875% and shares are trading under OTC ticker PSPBZ and last traded at $25.18. The issue is cumulative and non qualified.
Additionally the Priority Income Fund (nontraded) registered a new issue of term preferred stock, but nothing beyond the initial registration is known at this point in time. This is typical for Priority and we will be looked for an actual sale in the next week or two.