Well last week ended up near flat in the equity markets – with the S&P500 down a measly 15 basis points. The index was driven higher during the course of the week by over 1% as the market decided that hotter than forecast inflation number were ‘good news’.
Interest rates rose about 22 basis points on the week–closing at 4.30%. Rates traded in a 4.07% to 4.3% range with the inflation numbers kicking rates higher. This week we have the FOMC meeting starting Tuesday afternoon, but what was originally expected (a few months ago) to be a rate cutting meeting is now likely to be a ho-hum meeting. I will say it will be kind of interesting to see what Jay Powell has to say at the presser on Wednesday for hints at a future rate cut.
After 3 weeks of sharp drops in the Fed balance sheet assets by the stated goal of a $95 billion runoff we saw assets rise by $3 billion last week. The balance sheet now stands at $7.54 trillion—down from an all time high near $9 trilion. Isn’t it interesting how higher interest rates have stimulated demand for all the treasury paper being issued. We’ll see where this goes over time.
Last week as one would expect the average $25/share preferred and baby bond fell in price by 16 cents–honestly it could have been much worse given the rise in interest rates.
Investment grade issues fell by 18 cents, banking issues by 17 cents, mREIT issues rose 3 cents and shippers rose 6 cents. So we had the high quality low coupon issues falling much more than the low quality high coupon issues.
Last week we had one new issue price as asset manager Affiliated Managers (AMG) sold a new baby bond with a 6.75% coupon. This issue is not yet trading–but may trade before the week is out. Investors the feel they need to buy this issue ASAP you will need to call the bond desk at your broker.
Textainer issued a notice of redemption for all its (i) 7.000% Series A Cumulative Redeemable Perpetual Preference Shares (the “Series A Preference Shares”) and the corresponding redemption of each depositary share representing a 1/1000th interest in each such share, CUSIP 88314W204 (NYSE: TGH PRA) (the “Series A Depositary Shares”), and (ii) 6.250% Series B Cumulative Redeemable Perpetual Preference Shares (the “Series B Preference Shares” and, collectively with the Series A Preference Shares, the “Preference Shares”) and the corresponding redemption of each depositary share representing a 1/1000th interest in each such share, CUSIP 88314W303 (NYSE: TGH PRB) (the “Series B Depositary Shares”).
The redemption date for the Preference Shares and corresponding depositary shares will be April 15, 2024 (the “Redemption Date”). The redemption price for (i) each Series A Preference Shares will be $25,150.69 and (ii) each Series B Preference Share will be $25,134.55 (representing, in each case, $25,000 plus all accumulated and unpaid distributions to, but not including, the Redemption Date, whether or not declared). The corresponding depositary share redemption price will be (i) $25.15 per Series A Depositary Share and (ii) $25.13 per Series B Depositary Share (representing, in each case, $25.00 plus all accumulated and unpaid distributions to, but not including, the Redemption Date, whether or not declared).
I just bought a few ATHS at $25.44
Plan to buy more if it drops.
I can’t find the ticker for ATHS?
Hug,
What broker? ATHS shows up just fine at Ally.
Fc –> Interactive Brokers