Morning Commentary: Compass Diversified lists on NYSE; PennyMac unchanged; Deutsche dips

By Stephanie N. Rotondo

Seattle, July 3 – The preferred stock market was ticking upward early Monday even as liquidity faded due to the upcoming Fourth of July holiday.

The Wells Fargo Hybrid and Preferred Securities Index was up 4 basis points at mid-morning. The U.S. iShares Preferred Stock ETF was up 5 bps.

As was expected, Compass Diversified Holdings LLC’s $100 million of 7.25% series A preferred stock listed on the New York Stock Exchange on Monday under the ticker symbol “CODIPrA.”

Paper was trading at $24.84 early in the session, up 9 cents.

The deal came to market on June 19 via BofA Merrill Lynch and UBS Securities LLC.

Among other recently priced issues, PennyMac Mortgage Investment Trust’s $175 million of 8% series B fixed-to-floating rate cumulative redeemable preferreds – a deal priced on Tuesday – remained steady around $24.85.

The deal came at the tight end of the 8% to 8.125% price talk and upsized from $75 million. It is currently trading under a temporary ticker, “PNNMP.”

Morgan Stanley & Co. LLC, Keefe, Bruyette & Woods Inc. and RBC Capital Markets ran the books.

Away from recent deals, Deutsche Bank AG’s 6.55% trust preferred securities (NYSE: DXB) were relatively active at mid-morning.

The issue was bucking the day’s firmer tone, falling 8 cents to $25.30.

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