Midday Commentary: Arbor Realty, American Capital languishing below par; American Homes lists

By Stephanie N. Rotondo

Phoenix, May 8 - Preferred stocks remained firm as Thursday trading began.

The Wells Fargo Hybrid and Preferred Securities index was up 3 basis points as of mid-morning.

In the primary space, Arbor Realty Trust Inc.'s $55 million of 7.75% $25-par senior notes due 2021 - a deal that priced Wednesday - were seen at $24.55 bid early in the session.

From Tuesday's business, American Capital Agency Corp.'s $175 million of 7.75% series B cumulative redeemable preferreds were pegged at $24.65 bid.

Meanwhile, American Homes 4 Rent's $185 million of 5.5% series C preferred shares of beneficial interest were admitted for trading on the New York Stock Exchange.

The deal priced April 29. The ticker symbol is "AMHPC."

Paper was trading at $24.85 at mid-morning.

In the secondary, Fannie Mae and Freddie Mac preferreds were trying to move up after the government-backed mortgage guarantors released earnings.

The agencies reported profits again, though smaller than the previous periods.

Freddie's 8.375% fixed-to-floating rate noncumulative perpetual preferreds (OTCBB: FMCKJ) were up a nickel at $10.80. Fannie's 8.25% series S fixed-to-floating rate noncumulative preferreds (OTCBB: FNMAS) were steady at $10.23.

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