Preferreds soften; bank earnings on deck; JPMorgan slips; Navios preferreds go ex-dividend

By Stephanie N. Rotondo

Seattle, Jan. 11 – Preferred stocks were slipping in Monday trading, though on limited liquidity.

“Volume was pretty light,” a market source noted, adding that while the preferred space was weaker, it performed “better than the 10-year or 30-year segments in Treasuries.”

The Wells Fargo Hybrid and Preferred Securities index closed down 31 basis points. The index was off 7 bps at mid-morning.

On a broader basis, the markets were trading mixed. The Dow Jones industrial average and the S&P 500 were up slightly – even as China’s stock market dropped more than 5% on fears about the nation’s economy – while the Nasdaq was losing ground. Oil was meantime down 5.5% – hitting levels not seen since 2003 – and the dollar came in against the euro.

Still, a trader said there were “no real moves” as the new issue pipeline continued to be dry.

“After bank earnings, I think we will see some stuff coming,” the trader said.

JPMorgan Chase & Co. will kick off earnings season on Thursday. In Monday trading, the New York-based bank’s preferreds were dwindling.

The 6.15% series BB noncumulative preferreds (NYSE: JPMPH) declined 13 cents to $25.98. The 6.125% series Y noncumulative preferreds (NYSE: JPMPF) dropped 8 cents to $26.24.

Navios hits the skids

Navios Maritime Holdings Inc.’s 8.625% series H cumulative redeemable perpetual preferreds (NYSE: NMPH) were weakening as the paper went ex-dividend.

The preferreds fell 89 cents, or 15.86%, to $4.72.

A market source said the issue was yielding about 46%.

“It’s a little sketchy,” he said of the Monaco-based drybulk shipping company. While the company did declare a dividend on its preferreds about a month ago, “everyone is expecting them not to pay going forward,” the source said.

Holders of the Hs will receive 53.90625 cents per share on Jan. 15. Holders of the 8.75% series G cumulative redeemable perpetual preferreds (NYSE: NMPG) will meantime receive 54.6875 cents per share.

The dividend covers the period from Oct. 15 to Jan. 14.

© 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.