Midday Commentary: CoBank planning $100-par preferred sale; MFA Financial's preferreds firm

By Stephanie N. Rotondo

Phoenix, April 15 - CoBank ACB announced a new preferred stock offering on Monday, being the only new deal announced on Tax Day.

A trader said the $100-par perpetual issue was being talked around 6.25% and that the issue was expected to be A- rated.

"It looks pretty cheap actually for our world," he said.

He added that he had not yet seen any markets for the paper.

Meanwhile, among other recently priced deals, MFA Financial Inc.'s $175 million of 7.5% series B cumulative redeemable preferreds - a deal that came Tuesday - were seen at $25.05 bid as of early Monday trading. Dynex Capital Inc.'s $50 million of 7.625% series B cumulative redeemable preferreds - a deal that priced Thursday - were seen at $24.80.

Bank earnings continued to come out, with Citigroup Inc. reporting on Monday. Like Wells Fargo & Co. and JPMorgan Chase & Co., the results beat estimates, but that didn't cause too much reaction in the bank's preferreds.

The 7.875% fixed-to-floating rate trust preferreds (NYSE: CPN) were up a nickel at midday to $28.63.

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