BofI Holding sells $25 pars; REITs get some footing; Goldman Sachs preferreds rise

By Christine Van Dusen and Rebecca Melvin

Atlanta, Feb. 26 – BofI Holding Inc. priced $45 million of 6.25% $25-par subordinated notes on a Friday to end a week when performance for preferreds was once again driven by oil prices.

The BofI common shares were trading higher and were last seen up by 62 cents, or 3.5%, at $18.84.

Also on Friday, Digital Realty Trust Inc. and Colony Capital Inc. were in focus on the back of “decent” earnings reports, a market source said.

Colony’s 8.5% cumulative redeemable preferreds, series A, rose 16 cents to $24.11 on Friday while Colony’s 7.125% series C preferred stock moved up 58 cents at $20.18. The company's 7.5% series B redeemable perpetual preferreds ticked up 5 cents to $21.90 on Friday.

“All REITs have been smashed and are getting some footing. The Colony strength should attract some people reaching for yield,” the source said.

In trading, Fannie Mae and Freddie Mac continued to see some activity after a BofA Merrill Lynch strategist published a note about the companies.

The strategist this week wrote that the government conservatorships that went into effect in 2008 following the housing crisis may be a step closer to ending after the agencies’ lack of capital cushion was flagged by the Federal Housing Finance Agency.

In response, Fannie’s 8.25% series S fixed-to-floating rate noncumulative preferreds (OTCBB: FNMAS) traded down a penny at $3.15 on 116,557 shares traded. The notes closed there on 426,626 shares traded.

The 8.25% series T noncumulative preferreds (OTCBB: FNMAT), which finished Thursday at $4.40, were flat early on Friday, then closed at $4.55 on just 2,819 shares traded.

Freddie’s 8.375% fixed-to-floating rate noncumulative perpetual preferreds (OTCBB: FMCKJ) moved to $3.15 from $3.20. The notes closed Friday at $3.16.

The recently priced Goldman Sachs Group Inc. 6.3% series N noncumulative perpetual preferreds traded higher on Friday, moving to $25.42 before closing at $25.40 on 1.4 million shares traded.

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