| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers F > Headlines for Freddie Mac > News item |
Preferred stocks suffer as winter storm looms; Armour new issue fizzles; Selective gains
By Stephanie N. Rotondo
Phoenix, Feb. 8 - Approaching winter storm Nemo on the U.S. East Coast overshadowed the preferred stock market on Friday, resulting in light trading and desks emptying earlier than usual.
And, the market ended the week with no more new issues coming, though more were expected in the coming week.
"We should see a regional bank next week; that's the word," a trader said.
Armour Residential REIT Inc.'s newly priced 7.875% series B cumulative redeemable preferreds - a $135 million issue that came late Thursday - was pegged at $24.50 bid, $24.55 offered.
"It seems like a dog to me," a trader said. "I can't believe they pressed the yield on that one."
Price talk was initially around 8%.
Meanwhile, Selective Insurance Group Inc.'s $175 million issue of 5.875% $25-par senior notes due 2043 were moving up, as a trader quoted the issue at $24.90 bid, $24.95 offered.
The deal came on Tuesday.
And, General Growth Properties Inc.'s $250 million issue of 6.375% series A cumulative redeemable preferreds - which came Wednesday - were seen with a $24.70 bid.
"I haven't seen too much in those," a trader remarked.
In the secondary, Fannie Mae and Freddie Mac issues were actively trading with an upward tilt. The action came just one day after a survey indicated that most agree the government-backed mortgage issuers are necessary to the housing market.
Freddie's 8.375% fixed-to-floating rate noncumulative perpetual preferreds (OTCBB: FMCKJ) rose 7 cents, or 3.83%, to $1.90, while Fannie's 8.25% fixed-to-floating rate noncumulative perpetual preferreds (OTCBB: FNMAS) gained 9 cents, or 4.97%, to end at $2.30.
© 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.