Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers Review > Headlines for 2013 > News item |
Preferreds weaker, but less than common stock market, as investors eye government shutdown
By Stephanie N. Rotondo
Phoenix, Oct. 8 - Preferred stocks were not seeing much of a sell-off on Tuesday, according to a trader.
"Even with the equity sell-off, we're really not seeing any movement in the secondary market," the trader said.
He noted that preferreds were "mostly red," though not nearly as much as the straight equity markets. He also said that liquidity remained subdued.
Still, he opined that if the common stock market began to drop further and faster, that could spill over into the preferred marketplace.
"Everybody is sitting and waiting" for the federal government to reach a budget and debt-ceiling deal.
As of midday, the Wells Fargo Hybrid and Preferred Securities index was down 4 basis points. By comparison, the Dow Jones Industrial Average was off 65 bps. By the end of the day, the index had fallen 11 bps, while the Dow dropped 1.07%.
Market trends lower
Citigroup Inc.'s 7.125% series J fixed-to-floating rate noncumulative preferreds (NYSE: CPJ), along with Morgan Stanley Co. Inc.'s 7.125% series E fixed-to-floating rate noncumulative preferreds (NYSE: MSPE), were again among the day's most actively traded securities.
The Citi issue ended the day up 2 cents at $25.49, while the Morgan Stanley paper fell 15 cents to $25.30.
Also busy were JPMorgan Chase & Co.'s 5.5% series O noncumulatives (NYSE: JPMPD), which lost 7 cents to close at $21.18.
In the real estate investment trust space, Realty Income Corp.'s 6.625% class F cumulative redeemable preferreds (NYSE: OPF) lost 8 cents, ending at $24.22, as CYS Investments Inc.'s 7.5% series B cumulative redeemable preferreds (NYSE: CYSPB) held steady at $20.75.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.