Morning Commentary: Preferreds start week in the red; recent deals trade down

By Abigail W. Adams

Portland, Me., Jan. 29 – Preferreds began the week as they ended the last one – in the red. The Wells Fargo Hybrid & Preferred Securities Financial Index was down 61 basis points early in Monday’s session, after closing last Friday down by 32 basis points.

The U.S. iShares Preferred Stock ETF was down 0.78% on Monday.

Costamare, Inc.’s recently priced 8.875% series E cumulative redeemable preferreds, which freed for OTC trading on Friday under the ticker “CTMMF,” were also down early in the session on Monday.

The $25-par preferreds slipped 3 cents, or 0.12%, to $24.87 early in Monday’s session.

Costamare priced $115 million, or 4.6 million shares, of the 8.875% series E preferreds on Jan. 25.

Spark Energy, Inc.’s 8.75% series A fixed-to-floating rate cumulative redeemable perpetual preferreds were down 12 cents, or 0.49%, to $24.48 early in Monday’s session.

Spark Energy priced a 2 million share add-on to its $25-par 8.75% series A preferreds on Jan. 23.

Costamare’s new preferreds deal and Spark Energy’s add-on were the only deals to price last week. The primary market was quiet early Monday with no new deals announced.

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