Morning Commentary: Investors await Fed decision on interest rates; AmTrust’s $25-par notes list

By Stephanie N. Rotondo

Phoenix, Sept. 17 – The preferred stock market was quiet to start Thursday’s session as investors anticipated an announcement from the Federal Reserve’s two-day policy meeting.

The meeting will conclude later in the day, with the announcement slated to come at 2 p.m. ET.

“Nothing is really going to happen until the Fed makes their announcement,” a trader said, adding that it was still “up in the air” as to whether or not the central bank would raise interest rates.

The trader also opined that once the decision is out there, the new issue market could pick up.

As for recently priced deals, AmTrust Financial Services Inc.’s $125 million of 7.5% $25-par notes due 2055 were admitted to the New York Stock Exchange on Thursday.

The ticker symbol is “AFST.” The deal came Sept. 9.

A trader quoted the notes at $24.68 bid, $24.70 offered.

Meanwhile, Goodrich Petroleum Corp.’s 9.75% series D cumulative preferreds (NYSE: GDPPD) continued to firm up following Wednesday’s huge rally in crude oil prices.

The preferreds were up 5 cents, or 2.51%, at $1.84 at mid-morning.

Also rising were Fannie Mae and Freddie Mac preferreds. Those issues were on the active side on Wednesday as the “Jumpstart GSE Reform Act” was reintroduced in the Senate on Wednesday. The bill prohibits raising mortgage guarantee fees and using those increases for government spending. The bill also requires the U.S. Treasury to hold onto its preferred stock holdings in the mortgage giants.

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