New Residential preferreds boosted; Penn REIT lower; Fulton improves

By James McCandless

San Antonio, Nov. 2 – At the start of a new week, the preferred market moved along a positive trend.

Leading the secondary activity, New Residential Investment Corp.’s 6.375% series C and 7.125% series B fixed-to-floating rate cumulative redeemable preferred stocks were both boosted.

Also in the property space, Pennsylvania REIT’s 7.2% series C cumulative redeemable perpetual preferred shares drifted lower.

Meanwhile, in the finance space, Fulton Financial Corp.’s recent 5.125% series A fixed-rate non-cumulative perpetual preferreds improved.

Sector peer Bank of America Corp.’s 4.375% series NN non-cumulative preferred stock closed the afternoon on a downward track.

Ally Financial Corp.’s 8.125% series 2 fixed-to-floating rate trust preferred securities followed the market to higher levels.

New Residential boosted

Leading the Monday secondary activity, real estate investment trust New Residential’s 6.375% series C and 7.125% series B fixed-to-floating rate cumulative redeemable preferred stocks were both boosted by the end of the day.

The series C preferreds (NYSE: NRZPrC) were up $1.27 to close at $19.00 on volume of about 455,000 shares.

The series B preferreds (NYSE: NRZPrB) improved by $1.29 to close at $20.77 on volume of about 341,000 shares.

Early Monday, the company announced that it would repurchase up to $100 million of its three series of preferreds, including the series C and B tranches.

Also in the property space, Pennsylvania REIT’s 7.2% series C cumulative redeemable perpetual preferred shares drifted lower.

The preferreds (NYSE: PEIPrC) shaved off 18 cents to close at $5.47 with about 179,000 shares trading.

On Sunday, news broke that the company had filed a Chapter 11 petition in bankruptcy court to start a prepackaged restructuring plan.

Fulton improves

Meanwhile, in the finance space, Fulton Financial’s recent 5.125% series A fixed-rate non-cumulative perpetual preferreds improved.

The preferreds, trading under the temporary symbol “FULPP,” gained 15 cents to close at $25.50 on volume of about 305,000 shares.

Sector peer Bank of America’s 4.375% series NN non-cumulative preferred stock closed the afternoon on a downward track.

The preferreds, trading under the temporary symbol “BACPL,” declined by 2 cents to close at $24.98 with about 277,000 shares trading.

Ally Financial’s 8.125% series 2 fixed-to-floating rate trust preferred securities followed the overall market to higher levels.

The preferreds (NYSE: ALLYPrA) tacked on 8 cents to close at $25.82 on volume of about 250,000 shares.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index closed the session better by 0.05%.

The iShares US Preferred Stock ETF was up 22 cents to $36.29.

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