Morning Commentary: Preferreds fall after jobs number, Germany’s Greece rejection; Freddie slips

By Stephanie N. Rotondo

Phoenix, Feb. 19 – The preferred stock market was again under pressure on Thursday as “the jobs number was not as strong as people expected” and Germany rejected Greece’s loan extension request, a trader said.

As Treasuries were “basically flat,” the Wells Fargo Hybrid and Preferred Securities index dipped 15 basis points by mid-morning.

Freddie Mac released its fourth-quarter results early in the day, showing net income of $7.7 billion.

That compared to income of $48.7 billion the year before.

“The earnings didn’t hit estimates,” a trader noted.

And despite the fact that the government-sponsored entity was planning to make a $900 million dividend payment to the Treasury Department next month, the agency’s preferred shares were weakening.

Freddie’s 8.375% fixed-to-floating rate noncumulative perpetual preferreds (OTCBB: FMCKJ) were down a nickel, or 1.1%, at $4.50 early in the session. Sister agency Fannie Mae saw its 8.25% series S fixed-to-floating rate noncumulative preferreds (OTCBB: FNMAS) slipping 2 cents to $4.68.

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