Gastar Exploration's 10.75% preferreds list on NYSE; Fannie, Freddie mixed after earnings

By Stephanie N. Rotondo

Phoenix, Nov. 8 - Preferred stocks were faltering in Friday trading, according to the Wells Fargo Hybrid and Preferred Securities index.

The index was off 30 basis points around midday, falling to down 39 bps by day's end.

As was scheduled, Gastar Exploration USA Ltd.'s $50 million of 10.75% series B cumulative perpetual preferred stock listed on the New York Stock Exchange on Friday under the ticker symbol "GSTPB."

The deal priced Oct. 29. The preferreds were trading at $25.19 at midday, down from opening levels of $25.24. By the end of business, the paper had moved back up to end at $25.25.

Fannie Mae and Freddie Mac were meantime trading in mixed fashion, just one day after the agencies reported another round of huge profits. The preferreds were stronger as of Thursday's close but were hampered by the fact that the OTC markets were down for most of that session.

In early Friday trading, Fannie's 8.25% series S fixed-to-floating rate noncumulative preferreds (OTCBB: FNMAS) were down 4 cents at $8.21 and Freddie's 8.375% fixed-to-floating rate noncumulative perpetual preferreds (OTCBB: FMCKJ) were up 13 cents, or 1.59%, at $8.33.

However, by the bell, both of those issues were in the red.

The Fannie preferreds closed at $8.11, off 14 cents, or 1.7%. The Freddie paper dropped a dime, or 1.22%, to $8.10.

Fannie reported net income of $8.7 billion, and Freddie posted income of $30.5 billion on Thursday.

For its part, Freddie's huge profit was due to writing up almost $24 billion in tax-related assets.

The massive profits at both agencies meantime also signaled that taxpayers were ever closer to getting their money back after bailing out the firms in 2008.

Freddie is planning to make a $30.4 billion payment in December, which will be an overpayment of about $9 billion. Fannie is making an $8.6 billion payment, which will leave it with about $2.2 billion to pay back to taxpayers.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.