Midday Commentary: Atlas Pipeline units not yet freed; Public Storage higher; Fannie, Freddie up

By Stephanie N. Rotondo

Phoenix, March 13 - Preferred stocks were trending higher in early Thursday trading.

The Wells Fargo Hybrid and Preferred Securities index was up 13 basis points as of mid-morning.

Atlas Pipeline Partners LP priced a deal late Wednesday, a $110 million offering of 8.25% class E cumulative redeemable perpetual preferred stock units.

The deal was upsized from $75 million and came at the tight end of talk.

A trader saw a $24.57 bid, $24.60 offered market early in Thursday's session.

The deal had yet to free up, the trader said.

As for other recent deals, Public Storage Inc.'s $225 million of 6.375% series Y cumulative preferreds were pegged at $24.85.

That deal came Monday.

Fannie Mae and Freddie Mac continued to gyrate around as investors digest a flurry of recent news.

Earlier in the week, a bipartisan Senate group said it had a plan to wind down the two mortgage agencies, which sent the preferred issues into a downward spiral. On Wednesday, it was reported that at least one senator - Republican Pat Toomey of Pennsylvania - believed that shareholders shouldn't be shut out entirely in such a case.

Come Thursday, more chatter was out in regards to court cases involving the GSEs and the government's takeover of nearly all profits.

Fannie and Freddie preferreds were rebounding in early Thursday trading.

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