Midday Commentary: Preferreds muted following weak week; RenaissanceRe admitted to NYSE

By Stephanie N. Rotondo

Phoenix, May 31 - The preferred stock market was subdued as the month was coming to an end.

"There's no talk of anything new," a trader said. With the recent sell-off in the Treasury bonds, "everything is in fear mode, or in consolidation mode, whatever you want to call it."

The trader opined that the market was going to be soft for the foreseeable future and also speculated that new issues won't be coming under 5% anymore.

"Sub-five is probably over," he said.

As for the day's dealings, RenaissanceRe Holdings Ltd.'s $275 million of 5.375% series E noncumulative preference shares - a deal that priced May 20 - hit the New York Stock Exchange on Friday.

The ticker symbol is "RNRPE." Paper was trading at $24.50 at midday, versus an opening price of $24.69.

In deals that came this week, Entergy Arkansas Inc.'s 4.75% $25-par first mortgage bonds due 2063 were languishing at $24.05 bid, according to a trader.

Meanwhile, New York Mortgage Trust Inc.'s $75 million of 7.75% series B cumulative redeemable preferreds were seen at $24.70 bid early in the day. A trader said there was a broker's market trade at $24.75 early in the session as well.

Both issues priced on Tuesday.

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