Morning Commentary: Preferreds rebound; HSBC capital securities, AGNC active

By Abigail W. Adams

Portland, Me., Feb. 7 – After a tumultuous start to the week, preferreds were up early in Wednesday’s session as broader equity markets rebounded.

The Wells Fargo Hybrid & Preferred Securities Financial index was up 9.85 basis points and the U.S. iShares Preferred Stock ETF was up 0.46% early in Wednesday’s session.

HSBC Holdings plc’s 8% perpetual capital securities exchangeable at the issuer’s option into non-cumulative preference shares, series 2, were up in active trading early Wednesday.

The securities were up 34 cents, or 1.28%, to $26.84.

AGNC Investment Corp.’s depositary shares representing 7% series C fixed-to-floating rate cumulative redeemable preferred stock were also up in high volume trading early in the session.

The depositary shares were up 10 cents, or 0.40%, to $25.50. The depositary shares, which trade under the ticker “AGNCN,” had already outstripped their three-month average trading volume early in the session.

The depositary shares saw about 86,000 in play shortly before noon ET. The three-month average volume for the depositary shares is about 65,000.

AGNC’s depositary shares the company’s 7.75% series B preferred stock were also up, although they did not attract as much trading action as its peer.

The depositary shares were up 6 cents, or 0.23%, to $25.60 early in Wednesday’s session.

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