Fidus prices $43.48 million baby bonds; secondary breaks losses; GE in focus

By Abigail W. Adams

Portland, Me., Jan. 31 – The primary market’s silence and the secondary market’s losing streak were broken on Wednesday.

While there has yet to be a new offering of preferred stock this week, a new baby bond deal priced after the market close on Tuesday.

Fidus Investment Corp. priced $43.48 million of $25-par five-year notes with a coupon of 5.875%.

After a three-day losing streak, the secondary market for preferreds has returned to green.

The Wells Fargo Hybrid & Preferred Securities Financial index was up 39 basis points. The U.S. iShares Preferred Stock ETF was up 0.53%.

General Electric Capital Corp.’s 4.875% notes due 2052, 4.875% notes due 2053, and 4.7% notes due 2053 were in focus during Wednesday’s session.

All three notes made significant gains in high volume trading even as an analyst predicted General Electric will be removed from the Dow Jones industrial average.

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