Monday Morning Kickoff

The S&P500 moved in a range of 3070 to 3150 before closing the week at 3146–a gain of almost 2%.

The 10 year treasury moved in a range of 1.73% to 1.86% and closed the week at 1.84%.

The Fed Balance Sheet moved higher with $13 billion added to holdings. The previous week was $22 billion higher (just released also because of the holiday). This is a 2 weeks addition of $35 billion to the balance sheet.

There were a number of new issues announced last week.

SVB Financial (SIVB) announced a new preferred stock offering. It is now trading on the OTC Grey Market and last priced at $25.16.

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Customers Bancorp (CUBI) announced a new fixed rate debt issue with a coupon of 5.375%. This issue is not yet trading and the ticker is not know as of yet.

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Ford Motor Company (F) announced a new baby bond with a fixed rate coupon of 6.00%. The issue is not yet trading, but some folks have been able to buy through their brokers on the bond desk.

AT&T (T) announced and priced a new perpetual preferred stock with a fixed rate coupon of 5.00%. The issue is now trading on the OTC Grey market and last priced at $24.92.

Lastly, very late Friday non traded REIT Healthcare Trust Inc. announced pricing of a new perpetual preferred at a tasty 7.375%. The issue has not traded (that we could see), but should do so today (Monday) under OTC ticker HLTCP.

4 thoughts on “Monday Morning Kickoff”

  1. S&P still has Ford at BBB-? LOL! That said, even if you assume Ford is more like BB, 6% is a pretty decent coupon especially for a company with strong name recognition. Sorry if I missed it but are these sr. bonds or jr. sub bonds?

    I believe Ford has close to zero net debt which, if true, makes this interesting.

  2. Healthcare Trust.. This is the non-traded REIT which has not been doing well correct? AR Capital people, no? Ekkkk

    High secured debt to total assets (north of 45%), Low fixed charge coverage, Increasing Net Debt to EBITDA, Corporate governance questions and lack of access to capital markets (non-traded)…

    I will go on a limb and say Buyer Beware… Which really just means it will be a 2020 focus pick for Rida’s group.. haha

    1. Yes GrayhawkAZ–non traded company–which to me means check it out closely. But it may be well accepted as folks are a bit starved for yield lately. We’ll watch and see.

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