The week is about ready to start and we will have some economic news that almost without a doubt will move markets kind of sharply. Tuesday we have PPI and Wednesday we have CPI.
Last week was a wild week and equity indexes moved up and down like a yo-yo—although in the end the S&P500 was virtually unchanged. The index traded in a range of 5119 to 5359 and closed at 5344.
Interest rates also moved in a wild fashion trading in a range of 3.66% to 4.02% before closing at 3.94%. It was a week with little economic news and rates were still being driven by employment numbers from July. Of course it took just a single data point for the ‘talk’ to change directions as 1st time unemployment claims came in lighter than anticipated–talk about fickle investors.
This week we have bunches of economic news–with the PPI on Tuesday and CPI on Wednesday being key.
The Fed balance sheet continues to trend down–falling by $3 billion last week.
For the 5th week in a row the average price of a $25/share of preferred stock and baby bond barely moved last week. Since 7/12 the average price has been around $22–last week closing at $22.01 which was a penny lower than the previous week. Investment grade issues up a penny, banking issues fell 8 cents with mREIT issues up 6 cents.
I have inched into Preferred issues again as CDs mature.
WFC-L, EP-C, SR-A and WTFCP
However, Before I add to my positions, I will wait till the ME situation unwinds.
With so much hardware in the ME at this time, it’s probably prudent to wait.
Plus CPI data comes in too.
RILY kicked it off with a dividend suspension
Wow, showing pre-market almost a 50% drop in stock price. I hope no one has been playing in the RILY baby bond garden.
like Tim I have avoided Riley it was always murky to me. You can play in the litter box or the sand box. Bea
Bea—no reason to be mixed up with anything Bryant Riley–the sleaze factor is high.
Bea, same here.
Richard Lejeune has………..
HDO back in March was singing it’s praises but they could have put in a sell signal to their subscribers since then. So has Pacifica yield
Any thoughts on whether this can spill over into other names? Create more wide spread selling?
Had a nice gain flipping RILYZ buying last time it went below $11 and selling at $12.30. Now it’s bellow $10. Need to look carefully.
That net loss of $400MM more than wipes out their balance sheet equity.
Scary time to own any RILY prefs…
What happens to rilyz?
I was overweight with RILY preferreds several years ago. Was looking through my accounts one day, and I realized I had positions open in 3x accounts. I’d be out an easy 10k-15k after dividends if I was still in. Thank my many high-risk mistakes around Covid which taught me to just stay out of… well… high risk positions. Expensive lessons but could have been more expensive! Appreciate everyone’s inputs over the years-<