Signature preferreds below par; Gladstone Land up; DiamondRock dips

By James McCandless

San Antonio, Dec. 11 – As the week wrapped, the preferred space was overall positive, although top traders diverged.

At the top of volume on its first day, Signature Bank’s new $700 million 5% series A non-cumulative perpetual preferred stock ended below par.

Elsewhere in the finance space, Capital One Financial Corp.’s 4.8% series J fixed-rate non-cumulative perpetual preferred stock was active but unchanged.

Sector peer U.S. Bancorp’s series B floating rate non-cumulative perpetual preferred stock trailed by the end of the day.

Meanwhile, middle-market investor Gladstone Capital Corp.’s 6.125% notes due 2023 finished activity on the positive side.

Property owner DiamondRock Hospitality Co.’s 8.25% series A cumulative redeemable preferreds dipped.

Signature under par

At the top of Friday volume on its first trading day, Signature Bank’s new $700 million 5% series A non-cumulative perpetual preferred stock ended below par.

The preferreds, trading under the temporary symbol “SBNYL,” closed at $24.88 on volume of about 7.7 million shares.

The deal priced on Thursday.

Elsewhere in the finance space, Capital One’s 4.8% series J fixed-rate non-cumulative perpetual preferred stock was active but unchanged.

The preferreds (NYSE: COFPrJ) held level to close at $25.39 with about 220,000 shares trading.

Sector peer U.S. Bancorp’s series B floating rate non-cumulative perpetual preferred stock trailed by the end of the day.

The preferreds (NYSE: USBPrH) declined by 7 cents to close at $24.27 on volume of about 179,000 shares.

On Thursday, the preferreds lost 4 cents.

Gladstone rises

Meanwhile, middle-market investing name Gladstone Capital 6.125% notes due 2023 finished activity on the positive side.

The notes (Nasdaq: GLADD) improved by 1 cent to close at $25.23 with about 360,000 shares trading.

DiamondRock dips

Real estate investment trust DiamondRock’s 8.25% series A cumulative redeemable preferreds dipped to lower levels.

The preferreds (NYSE: DRHPrA) were pushed down 2 cents to close at $26.10 on volume of about 178,000 shares.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index rounded out Friday up by 0.06%.

The index ended down 0.21% on Thursday, finished Wednesday up by 0.15% and capped Tuesday up by 0.21%.

The index rose 0.06% this week.

The iShares US Preferred Stock ETF was up 2 cents to $37.89.

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