Sneaking Out of Common Stocks Today

When you look at the charts of the S&P500 it looks like everyone wants out—but they don’t want to spook anyone. This index keeps hitting new daily low after new low—but it has been very orderly after the 1st 90 minutes. There is no real economic news today and with the Fed in a ‘quiet period’ before the FOMC meeting next week they aren’t able to yak and muddy the waters. Regardless I don’t mind slow selloffs–folks don’t get so panicked with a drift lower.

The 10 year treasury is tame and the current yield has drifted 4 basis points lower–perfect. Interestingly preferreds and baby bonds are lower today–must be in sympathy with the common shares. The Athene preferreds outstanding are getting spanked pretty good since yesterdays new preferred announcement–they are all off 2-3% in the last 2 days.

It looks like demand for the new Athene 7.75% fixed rate reset issue is fairly tepid–it is trading right at $25/share–it is a large offering (20 million shares) so it will take a while to soak up the shares–no rush to buy any of this issue. ‘If you prefer’ mentioned in the comments that this is the 10th issue that will be outstanding from Apollo Management (APO)–lots to choose from with most of them being insurance/annuity focused. They are here.

The new 8% baby bond issue (RWAYZ) from BDC Runway Growth Finance (RWAY) doesn’t seem to be trading yet–I would think by the end of the week we will see it.

2 thoughts on “Sneaking Out of Common Stocks Today”

  1. Why not take profits this time of year and wait out the Fed, not only do we have more rate increases but the Fed is busy with QT and taking $ 100B a month out of the system. I remember last summer the word was the Fed will have 2 rate increases and a pivot..HaHa here we are and still looking down the road. Always good to book a profit, if you can find one!

  2. I have been steadily adding to the stock mutual fund part of my accounts over the last year. Hoping it pays off.

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