Weekly Kickoff

Interest rate remain quiet at somewhat lower levels over the course of the last couple of weeks–and while lower, income issues didn’t move much higher–in fact some didn’t move at all. The 10 year treasury is again quiet this morning at 4.41%.

The S&P500 moved higher last week moved higher by 1.5% closing a few days at record highs–most news is ‘good news’ it seems. There remains plenty of ‘juice’ on the sidelines to move this index up higher yet.

The 10 year treasury closed the week at 4.42% after trading as low as 4.32% during the week. Last week the PPI came in hot, but the CPI as expected. It didn’t take long (maybe an hour) for folks to once again revel in the expected ‘rate cuts’ to come—folks never seem to learn that 1 number isn’t a trend.

This week we have only minor economic news, but we do have plenty of Fed yakkers and while they have been well behaved over that last month or two you never know when one of them is going off the rails.

The Federal Reserve balance sheet assets fell by a giant sized $49 billion last week. The Federal Reserve announced a slowing in balance sheet runoffs–from $95 billion/month to $60 million. We should see this kick-in any time now.

Last week the average $25 moved higher, but just by 8 cents. Investment grade issues were up a dime, banking issue were 8 cents higher, CEF issues were flat on the week and mREIT preferreds were the big winner with a jump of 27 cents.

There were 2 new income issues priced last week.

mREIT Chimera Investment (CIM) sold a baby bond issue with a coupon of 9%.

Citizens Financial Group (CFG) sold a new issue of perpetual preferred stock with a fixed rate of 7.375%. They will call for redemption a preferred fixed to floating issue (CFG-D).