Stocks are Hesitant While Interest Rates Barely Move

For a change common stocks opened the day a bit weak, but since have risen to near even on some exchanges–no surprise. The 10 year treasury is off 1-2 basis points at 1.61%–hardly a move at all.

It is interesting that the corona virus is playing out like a few of our commenters thought it would–don’t believe the data from China is what they implored–and while traders moved on forgetting the virus the numbers grew by leaps and bounds overnight. I mentioned yesterday that ‘only a fool would ignore it in total’, referring to the virus. Thanks to some of our commenters I am keeping one eye on the situation.

Looking over some of the most recent new issues we see a mixed bag. The new Triton International 6.875% preferred (TRTN-D) has traded strongly–hitting $25.78 yesterday.

The new 6.25% term preferred from Oxford Lane Capital (OXLC) stays weak trading now at $24.70 as it is still trading on the OTC market under ticker OXCPP.

The Brookfield Property Partners 5.75% perpetual which just started trading on 2/11 is at $25.38 today on the OTC market under temporary ticker BOPTP.

$25/shares preferreds and baby bonds are off just a couple cents on the week. Banks show a 5 cent drop, but I see quite a few banking issues went ex-dividend today (some BAC, COF and Puerto Rican Bank, FirstBancorp, issues) so likely they are really flattish.

Folks are talking on the website about a number of items–as always.

There has been a little discussion on the just announced State Street (SST) call of a 5.25% preferred (SST-C). This kind of tells you where we are going with investment grade issues.

There is some discussion of the B Riley (RILY) new baby bond which is now trading under ticker RILYM at $24.95. At a 6.375% coupon is this one the best buy of all the issues the company has outstanding?

Also Bob-in-DE has posted a note on a new preferred which I hadn’t seen yet from Medalist Diversified REIT (who?) It is a 8% issue offering–I will get something out shortly. Bob’s note is ‘quit complaining about low rates’ (in jest I think).

Leave a Reply

Your email address will not be published. Required fields are marked *