Midday Commentary: Preferred stocks pressured in low-volume trading amid government turmoil

By Stephanie N. Rotondo

Phoenix, Oct. 7 - A preferred stock trader said investors were taking a pause on Monday as they waited to see how the federal government would deal with a partial shutdown, not to mention the debt-ceiling debacle.

"It's one of the quietest days ever," he said. "Nobody wants to do anything, waiting for the government."

The government has been partially shut down since early last week, as Congress failed to pass a budget for the upcoming year. While talks have reportedly been ongoing to get something passed, House speaker John Boehner has said he won't call for a vote on anything that includes funding for the Affordable Care Act, or Obamacare as it is frequently referred to.

Negotiations have also been in the works on the debt ceiling, which is expected to be hit by Oct. 17.

As for the preferred market, the trader noted that securities were trading off "marginally."

The Wells Fargo Hybrid and Preferred Securities Index was down 15 basis points as of midday.

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