Midday Commentary: Preferreds edge higher; trader foresees active pipeline; REITs busy

By Stephanie N. Rotondo

Phoenix, April 3 - The preferred stock market was again on the quieter side early Thursday, but the market was attempting to regain the ground lost in the previous session.

By mid-morning, the Wells Fargo Hybrid and Preferred Securities index was inching up 3 basis points. It had closed on Wednesday down 16 bps.

A trader said he was hearing that there were "a couple deals in the works for next week," though he wasn't sure exactly who would be the issuers.

"I think this month could be pretty active," he said of the primary, given that the market was so cheap to raise money in. "We could see a lot of refinancings going on."

He noted that the pipeline could pick up once first-quarter earnings begin to roll out next week.

Though overall volume was muted, real estate investment trust preferreds were trending toward the active side.

CoreSite Realty Corp.'s 7.25% series A cumulative redeemable preferreds (NYSE: CORPA) were down a nickel at $24.95. Digital Realty Trust Inc.'s 7.375% series H cumulative redeemable preferreds (NYSE: DLRPH) were meantime up 4 cents at $24.98.

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