Preferred stock trading lackluster; Harvest Capital around par; Citigroup, Annaly firm

By Stephanie N. Rotondo

Seattle, Aug. 22 – Preferred stock market trading was limited during Tuesday’s session.

“What volume?” quipped one trader.

There was also a mixed tone to the market.

The Wells Fargo Hybrid and Preferred Securities index closed flat for the day, though it was down 4 basis points at mid-morning.

Furthermore, the index was in the green as the day started.

The U.S. iShares Preferred Stock ETF was up 10 bps.

Among new deals, Harvest Capital Credit Corp.’s $25 million of 6.125% $25-par notes due 2022 – a deal priced late Monday – were quoted at $24.75 bid, par offered.

Keefe Bruyette & Woods Inc. ran the books.

The notes will be redeemable on or after Sept. 15, 2019 at par plus accrued interest.

Proceeds will be used, in part, to redeem the company’s $27.5 million of 7% notes due 2020 (Nasdaq: HCAPL).

Those notes traded down 7 cents to $25.24 in the wake of the new deal.

In the secondary, Citigroup Inc.’s trust preferred securities (NYSE: CPrN) topped the day’s most active list, falling a nickel to $27.15.

Annaly Capital Management Inc.’s 6.95% series F fixed-to-floating rate cumulative redeemable preferreds (NYSE: NLYPrF) were also active, rising a penny to $25.02.

Fannie Mae and Freddie Mac’s paper was also among the day’s busier securities, though there was no fresh news out on the GSEs to act as a catalyst.

Fannie’s 8.25% series S fixed-to-floating rate noncumulative preferreds (OTCBB: FNMAS) were up a penny at $6.60. Freddie’s 8.375% fixed-to-floating rate noncumulative preferreds (OTCBB: FMCKJ) added 6 cents to close at $6.29.

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