Preferred trading muted in holiday session; Teekay begins trading on NYSE; recent deals firm

By Stephanie N. Rotondo

Seattle, Oct. 10 – The Columbus Day holiday was weighing on liquidity in the preferred stock market on Monday.

“The bond market is closed so it’s pretty quiet,” a trader said.

Despite the limited trading, the market finished the day with a weaker tone.

The Wells Fargo Hybrid and Preferred Securities Index declined 20 basis points for the day.

There was little news to move the space, though it was announced that Teekay LNG Partners LP’s $125 million of 9% series A cumulative redeemable perpetual preferred units listed on the New York Stock Exchange on Monday.

The ticker symbol is “TGPPA.” The deal came Sept. 28, in line with price talk.

A trader said there was “lots of stock offered” around par early in the session. The paper ended at $24.99.

As for deals from the previous week, they had a more positive tone than the rest of the market.

Public Storage’s $350 million of 4.9% series E cumulative preferreds were seen at $24.80 at mid-morning though they later moved up to close at $24.85.

That was a gain of 8 cents.

The issue priced on Oct. 6. It is trading under a temporary ticker, “PBSRP.”

Also from Oct. 6, Chimera Investment Corp.’s $135 million of 8% series A cumulative redeemable preferreds were pegged “around $24.83,” a trader said.

By the bell, the preferreds were at $24.80, up 20 cents from Friday.

That issue also has a temporary ticker, “CMIAP.”

Bluerock Residential Growth REIT Inc.’s $67.5 million of 7.125% series D cumulative preferreds – a deal priced on Oct. 5 – were meantime trading at $24.80 at mid-morning. The preferreds ended the session at that level, which was a gain of 18 cents from Friday levels.

Like the other recent deals, it also has a temporary symbol, “BLRKP.”

And, National Retail Properties Inc.’s $300 million of 5.2% series F cumulative redeemable preferreds – which is trading under “NNNPP” for the time being – were trading at $24.95 early in the day, though it settled in to $24.92.

Still, that was up 9 cents from previous trades.

The preferreds priced Oct. 4.

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