Morning Commentary: Preferred stocks mixed; Navios Maritime climbs; Freddie Mac up slightly

By Cristal Cody

Eureka Springs, Ark., Nov. 16 – Preferred stocks were mixed in early trading on Wednesday with new issuance likely on the backburner until December.

“Everything is moving north because we had a tremendous sell-off through Monday and it’s rebounded the last two days,” a trader said.

Navios Maritime Holdings Inc.’s preferreds “have jumped about 50% in the last three days,” the source said.

Navios Maritime Holdings’ 8.75% series G cumulative redeemable perpetual preferreds climbed $1.82, or 21.8%, to $10.17 in midday trading.

Housing-related preferred stocks were mixed in trading early Wednesday.

Freddie Mac’s 8.375% fixed-to-floating rate noncumulative preferreds (OYCBB: FMCKJ) were up 1 cent, or 0.2%, to $5.15.

Fannie Mae’s 8.25% series S fixed-to-floating rate noncumulative preferreds (OYCBB: FNMAS) rose 5 cents, or 0.91%, to $5.55 in early trading.

Fannie Mae’s 7.625% series R noncumulative preferreds (OTCBB: FNMAJ) were down 8 cents, or 1.64%, at $4.80 as the session got underway.

New issuance is likely to wait until December, the market source said.

“There’s a good trading range for issues because it’s bouncing around – it’s the kind of volatility we like to see but investors not so much,” the source said. “I don’t think we could bring [a new issue] with the market being hammered, so we’ll probably have to wait.”

© 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.