Midday Commentary: Ladenburg Thalmann lists; Fannie, Freddie volatile as rumor mill heats up

By Stephanie N. Rotondo

Phoenix, May 29 - The Treasury bonds' decline on Tuesday was continuing to wreck havoc on the preferred market during Wednesday trading, a trader said.

In new listings, Ladenburg Thalmann Financial Services Inc.'s 8% series A cumulative redeemable preferreds were admitted to the New York Stock Exchange on Wednesday.

The deal priced May 21 and was first announced as a $50 million offering on May 14.

The paper was trading at $24.67 at midday, versus opening levels of $24.50.

Elsewhere in the secondary, Fannie Mae and Freddie Mac securities were off significantly in early trading.

Freddie's 8.375% fixed-to-floating rate noncumulative perpetual preferreds (OTCBB: FMCKJ) were down 57 cents, or 8.52%, at $6.12 at midday. Fannie's 8.25% series S fixed-to-floating rate noncumulative preferreds (OTCBB: FNMAS) were meantime down 50 cents, or 7.81%, at $5.90.

A trader said there was "nothing definitive" that was causing the dip in the preferreds - the common stock was swinging wildly as well, he said - but noted that the rumor mill was running overtime in regards to the government-backed mortgage giants' future.

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