Midday Commentary: Preferred market ticking higher; Commonwealth REIT's board ousted

By Stephanie N. Rotondo

Phoenix, March 25 - Preferred stocks were strong Tuesday after selling off during the first session of the week.

The Wells Fargo Hybrid and Preferred Securities index was up 12 basis points as of mid-morning.

A trader said he was continuing to hear rumors of pending new deals, though he hadn't heard any specific names.

No deals were announced as of early Tuesday.

In the secondary market, Commonwealth REIT's 7.25% series E cumulative redeemable preferreds (NYSE: CWHPE) were up slightly on news the company's investors had voted to oust the entire board of directors.

"The investors wanted the board off because they didn't like what they were doing," a trader said, though in a statement released Tuesday, the company said the board's removal was being done "without cause."

The preferreds were up 3 cents to par.

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