Our site runs on donations to keep it running for free. Please consider donating if you enjoy your experience here!

Weekly Kickoff

Well time to get another week underway. We closed out last week with the highest 10 year treasury yield we have had in the last 3 months—just shy of 4.30% which was up 14 basis points from the previous Friday. Fortunately this rise in yields didn’t hammer income issue share prices.

Last week we had both the consumer price index (CPI) and the producer price index (PPI) released and both of them came in hotter than forecast. Any illusion of a Fed Funds rate cut for March was quickly put to bed—very slim chance of any rate cut.

This week we don’t have what I would call market moving economic data being although sometimes we get surprised with what the markets determine is important. There are bunch of Fed yakkers during the week, but given the economic data released lately (hotter) we know none of them are going to be goosing markets with rate cut hints. Next week we will have the personal consumption expenditures report (PCE) which will give us an important data point.

Last week the Federal Reserve balance sheet grew by $2.5 billion. Balance sheet assets now stand at $7.634 trillion.

The average $25/share preferred and baby bond issue moved just a tiny bit last week–higher by 4 cents/share. With rates up by 14 basis points it is quite the surprise that see didn’t see a fairly sharp drop in prices–prices relative to rates have held up well through this interest rate move–everyone is waiting patiently for a continued move in rates lower. Investment grade issues m0ved 9 cents lower, banks 2 cents higher, mREITs 13 cents higher with shippers off a nickel.

Last week we had 1 new income issue priced. Synchrony Financial (SYF) priced a new issue of Reset Rate preferred stock with an initial coupon of 8.25%. This issue is now trading grey market under ticker SYFPV and closed last Friday at $24.92.

2 thoughts on “Weekly Kickoff”

  1. nycb is the issue. The market cap? Like 3.5 billion on over 100 b in assets, can be closed at any moment……And nobody is talking about it. Like its been swept under carpet

Leave a Reply

Your email address will not be published.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