Morning Commentary: Preferreds begin week with firm tone; Arbor Realty plans add-on to notes

By Stephanie N. Rotondo

Phoenix, Aug. 4 – The preferred stock market was ticking up in early Monday trading.

The Wells Fargo Hybrid and Preferred Securities index was up 7 basis points at mid-morning.

Arbor Realty Trust Inc. announced a reopening of its 7.375% $25-par senior notes due 2021 (NYSE: ABRN) on Monday. A trader said the add-on was said to have a 7.625% yield to maturity, which would place the offer price at “$24.63 or something like that.”

That compared to Friday’s close of $24.78, he noted.

“I don’t know what kind of demand they are going to get for it,” he said.

The notes were trading at $24.22 early in the session, down 56 cents or 2.26% from Friday and down from opening levels of $24.61.

The notes were seeing above-average trading volume as well.

There is about $58.64 million of the notes outstanding.

Deutsche Bank Securities Inc., Keefe Bruyette & Woods Inc. and MLV & Co. LLC are the joint bookrunning managers. JMP Securities and Ladenburg Thalmann are the co-managers.

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