Morning Commentary: First Republic, GM prep offerings; Ashford jumps; Farmer Mac gains

By James McCandless

San Antonio, Sept. 9 – The preferred space opened higher on Wednesday with the Wells Fargo Hybrid & Preferred Securities Financial index up by 0.36%.

In early primary movement, First Republic Bank announced plans to price an offering of $25-par series K non-cumulative perpetual preferred stock.

BofA Securities, Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities, LLC are the bookrunners.

Also, General Motors Financial Co., Inc. said that it plans to price $1,000-par series C fixed-rate reset cumulative perpetual preferred stock.

Citigroup Global Markets Inc., JPMorgan, Mizuho Securities USA LLC, Morgan Stanley, RBC Capital Markets, LLC and Wells Fargo are the bookrunners.

On Sept. 30, 2030 and every five years thereafter, the dividend resets to the rate of the Treasuries plus a spread.

The preferreds are redeemable on Sept. 30, 2030 and any dividend payment date.

At the top of the secondary market, real estate investment trust Ashford Hospitality Trust, Inc.’s 7.5% series H cumulative preferred stock was shooting higher.

The preferreds (NYSE: AHTPrH) were up 69 cents to $4.97 on volume of about 51,000 shares.

Rural lender Federal Agricultural Mortgage Corp.’s 5.25% series F non-cumulative preferred stock was also gaining ground.

The preferreds (NYSE: AGMPrF) were adding 15 cents to $25.76 with about 36,000 shares trading.

Meanwhile, in the banking and finance space, Wells Fargo & Co.’s 4.75% series Z non-cumulative perpetual class A preferred stock was moving along the prevailing trend.

The preferreds (NYSE: WFCPrZ) were tacking on 14 cents to $24.74 on volume of about 36,000 shares.

Sector peer Ally Financial, Inc.’s 8.125% series 2 fixed-to-floating rate trust preferred securities were gaining.

The preferreds (NYSE: ALLYPrA) were shifting up 6 cents to $24.74 with about 35,000 shares trading.

Elsewhere, insurance carrier Brighthouse Financial, Inc.’s 6.75% series B non-cumulative perpetual preferreds were receiving a boost.

The preferreds (Nasdaq: BHFAO) were rising 45 cents to $26.84 on volume of about 24,000 shares.

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