The income issue markets haven’t moved too much in the 1st two days of the week–the average preferred stock and/or baby bond is off 3 cents this far.
We do see the Callon Petroleum $50/share preferred getting whacked by $1.50 as shown here. UPDATE–CPE has mentioned they will be redeeming their 10% preferred stock. We also note that 4 of the Colony Capital preferreds have gone ex-dividend today as shown on the ex-dividend calendar here. Maybe there is a bounce to be played in the Colony issues.
The 10 year treasury is back down in the high 2.40%’s after the trip into the 2.50%’s last week. Of course we are most curious as to which way these interest rates will break–seems to me that with the never ending conflicts in economic data there is little reason to move either direction–only political types of items are likely to move rates sharply (i.e. China trade deal, various tariffs with the EU).
Of course I still await on the pricing of the new Sotherly Hotels preferred – seems like they are having a bit of a problem getting it priced to the satisfaction of all parties – these things should be more buttoned down before they announced the new issue. Doubtful we will have any interest in the new issue since they already have 2 issues outstanding with 7 875% and 8% coupons and if we wanted it we would have it already. I have owned the baby bonds which are being called for quite some time—and am sorry to see them go.