Preferreds slide; Two Harbors brings upsized $125 million deal; New York Community on tap

By Stephanie N. Rotondo

Seattle, March 7 – The preferred stock market was under pressure in Tuesday dealings on the heels of a new GOP-led plan to repeal Obamacare and replace it with what is being dubbed “TrumpCare.”

The market is also a little shaky as investors look for more details out of the White House over its tax plans, as well as its efforts to reduce regulations.

The Wells Fargo Hybrid and Preferred Securities index declined 22 basis points. The U.S. iShares Preferred Stock index was down 29 bps.

A new deal was added to the tape on Tuesday from Two Harbors Investment Corp.

The deal was originally slated to be a $75 million offering of series A fixed-to-floating rate cumulative redeemable preferred stock, with price talk in an 8.125% to 8.25% range. The deal was eventually upsized to $125 million and priced at the tight end of talk.

Morgan Stanley & Co. LLC, UBS Securities LLC and Keefe Bruyette & Woods Inc. are running the books.

The market was also waiting for an offering of series A fixed-to-floating rate noncumulative preferreds from New York Community Bancorp Inc.

That deal was announced late Monday.

Goldman Sachs & Co., Credit Suisse Securities LLC and BofA Merrill Lynch are the bookrunners.

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