Yesterday was kind of flattish in the income issues marketplace–some issues up ,some down–although some of the regional bankers took a pretty large leap up. Customers Bancorp (CUBI), Valley National (VLY), Zions (ZION) and others saw their preferreds jump 2-8%–no particular reason for the jump except time has passed and each day that passes without a collapsing bank signals a potential end to the ‘crisis’. On the other hand–in a giant overreaction, Allstate (ALL) preferreds tumbled with the announcement of a new preferred issue.
Today I see the 10 year treasury is at 3.48% this morning which is 2 basis points below yesterday’s close. I am thinking we continue to see rates in a narrow range until the debt ceiling issue can be resolved so things should be flattish for the balance of the month.
Home Depot (HD) earnings were out this morning and comparable store sales were down–is this a proxy for the economy? Certainly it is meaningful for home building and home improvement – I have no answer but these pieces of information add talking points to recession speculation. We will have retail sales ex automobiles released here in a few minutes and this will add a little more color to the recession (potential) story.
I won’t be doing anything again today except potentially going ahead and buying either the new Allstate issue OR one of their currently outstanding issues. I sat on my hands yesterday.