DiamondRock preferreds below par; Ally Financial rises; AT&T declines

By James McCandless

San Antonio, Aug. 21 – At the end of the week, the preferred market walked back some of the gains from earlier in the week.

At the top of the secondary market, DiamondRock Hospitality Co.’s new $110 million 8.25% series A cumulative redeemable preferred stock finished below par.

Meanwhile, in the finance space, Ally Financial Corp.’s 8.125% series 2 fixed-to-floating rate trust preferred securities rose.

Sector peer Wells Fargo & Co.’s 4.75% series Z non-cumulative perpetual class A preferred stock was under water.

Truist Financial Corp.’s 4.75% series R non-cumulative perpetual preferred stock was active but unchanged.

Elsewhere, telecom company AT&T, Inc.’s 4.75% series C perpetual preferred stock ended the session in decline.

DiamondRock under par

At the top of the Friday secondary market, real estate investment trust DiamondRock’s new $110 million 8.25% series A cumulative redeemable preferred stock finished its first day below par.

The preferreds, trading under the temporary symbol “DRHPP,” closed at $24.70 on volume of about 1.4 million shares.

The deal priced on Thursday.

Ally rises

Meanwhile, in the finance space, Ally Financial’s 8.125% series 2 fixed-to-floating rate trust preferred securities rose.

The preferreds (NYSE: ALLYPrA) garnered 9 cents to close at $24.85 with about 228,000 shares trading.

Sector peer Wells Fargo’s 4.75% series Z non-cumulative perpetual class A preferred stock was under water.

The preferreds (NYSE: WFCPrZ) shaved off 5 cents to close at $24.99 on volume of about 223,000 shares.

On Thursday, the preferreds racked up 9 cents.

Truist Financial’s 4.75% series R non-cumulative perpetual preferred stock was relatively active but ultimately unchanged.

The preferreds (NYSE: TFCPrR) closed level at $26.28 with about 209,000 shares trading.

On Thursday, the preferreds improved by 9 cents.

AT&T declines

Elsewhere, telecom company AT&T’s 4.75% series C perpetual preferred stock ended the Friday session in decline.

The preferreds (NYSE: TPrC) were pushed down 11 cents to close at $25.37 on volume of about 123,000 shares.

On Thursday, the preferreds shifted up 8 cents.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index capped the week down by 0.03%, slightly worse than the 0.02% dip from early Friday trading.

The iShares US Preferred Stock ETF was down 4 cents to $36.53.

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