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PCE – On Forecast – Now Waiting for More News

Well yesterday turned out to be pretty quiet – with the personal consumption expenditures (PCE) released yesterday pretty much on forecast. There had been a pretty big possibility that markets would move bunches if the inflation components were have come in hot, but this was not the case. As investors and not traders I am always happy for less market movement. Bunches of dividends hit our accounts yesterday driving balances to record highs–I am plenty happy just collecting dividends and interest.

I noticed this morning that the hated B. Riley (RILY) whacked their dividend in half last night (from $1.00/share per quarter to 50 cents)–not a giant surprise given that the company had been very generous in the past. While cutting the dividend the company floated the idea of using the funds to start to buy back debt at a discount—some exchange traded debt shares are trading as low as $15/share (against $25/share liquidation value). Probably more important to investors is the company is delaying the filing of their 10-K–already being under fire this delay is not welcome by common holders–shares are off $2-$3/share this morning to be trading around $15.xx.

I continue to believe that B Riley will survive in spite of their own mismanagement–the many, many poor investments the company has made and their large debt position. It is likely the exchange traded debt of the company presents a bargain – but I don’t mess around with junky stuff like this – those with excess funds could invest and realize nice gains maybe.

Did you notice that Xcel Energy (XEL), which is a Minnesota based utility is now being blamed for the Texas wildfire? Additionally they have been blamed for a Colorado wildfire–most all Xcel’s operations are in Minnesota, Colorado and Texas. The common shares were off $5.00/share yesterday to the $52 area. It is becoming obvious that utilities will potentially be ‘on the hook’ in the future for fires. A short company filing with the SEC is here.

The 10 year treasury is trading around 4.24% right now – not much change in the last 24 hours. Today we have the S&P manufacturing purchasing managers index, ISM manufacturing, and consumer sentiment–none of these should be huge market movers–now investors are focused on next week and the February employment numbers which will be released next Friday.

Equity futures are quiet–maybe slightly red–quiet is good — I love it.

6 thoughts on “PCE – On Forecast – Now Waiting for More News”

  1. -new issue-
    Athene Holding Ltd 7.250% Fixed-Rate Reset Junior Subordinated Debentures due 2064 redeemable at the issuer’s option on or after 03/30/2029 at $25 per note plus accrued and unpaid interest, and maturing 03/30/2064.

  2. Tim; It pays to really watch your investments with an “Eagle Eye”. Speaking of wild fires, there was a very big story in our local paper here in Omaha where there are suits being filed against “Berkshire Hathaway Energy” a subsidiary of Berkshire (Warrens Company) for the wildfires southern Oregon and Northern California. The article was lengthy and said it could go as high as $8 Billion. But of course they always start high so they can settle for what they actually wanted. Also on a completely “different note” I did end up buying a large position in that new STATE STREET preferred that just came public. Got a great price from Schwab of $100.04. So in other words basically par. Its a 6.7%. Not crazy about the reset but I have 5 years to worry about that.

      1. 857477CH4. No ticker symbol. Available by calling the fixed income group at your broker.

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