Morning Commentary: Deutsche Bank preferreds dip amid lack of DOJ settlement; recent issues mixed

By Christine Van Dusen

Atlanta, Oct. 3 – Preferred stock market investors continued to closely watch Deutsche Bank AG as the German lender continued settlement talks with the U.S. Department of Justice, which is seeking to fine Deutsche Bank up to $14 billion for its handling of mortgage-backed securities.

On Friday, it was reported that Deutsche Bank was nearing a settlement that was well below the original amount proposed. But as of Monday morning, an agreement hadn't been presented to senior-level executives from either party, according to published reports.

In response, Deutsche Bank’s 7.6% trust preferred securities (NYSE: DTK) were down 23 cents, at $23.55, on Monday morning.

The 8.05% TruPS (NYSE: DKT) were weaker by 26 cents, at $24.09. And the 6.55% TruPS (NYSE: DXB) dipped 32 cents to $22.95.

Among recent new issues in the preferred stock market, City Office REIT Inc.’s $100 million of 6.625% series A cumulative redeemable preferreds (temporary symbol: CYORP) – a deal that priced Tuesday – were quoted on Monday morning at $24.94, up 12 cents.

And AmTrust Financial Services Inc.’s $287.5 million of 6.95% series F noncumulative preferred stock (NYSE: AFSIPF), which was admitted to the New York Stock Exchange on Thursday, ticked down 2 cents to $25.35 on Monday morning.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.