Morning Commentary: Aspen Insurance preferreds drop; JPMorgan better; AT&T under water

By James McCandless

San Antonio, July 28 – The preferred market started Tuesday with another upward shift as the Wells Fargo Hybrid & Preferred Securities Financial index opened up by 0.16%.

At the top of secondary activity, insurance provider Aspen Insurance Holdings Ltd.’s 5.625% non-cumulative perpetual preferred shares were dropping.

The preferreds (NYSE: AHLPrE) were down 17 cents to $24.50 on volume of about 240,000 shares.

On Monday, the company received a ratings downgrade from Moody’s Investors Service, which cut its financial strength rating and issue-level ratings and shifted the outlook to negative.

Elsewhere, in the finance space, JPMorgan Chase & Co.’s 4.75% series GG non-cumulative preferred stock was joining the overarching trend.

The preferreds (NYSE: JPMPrJ) were picking up 10 cents to $27.04 with about 203,000 shares trading.

Sector peer Citigroup Capital XIII’s 7.875% fixed-to-floating rate trust preferred securities were also receiving a boost.

The preferreds (NYSE: CPrN) were rising 18 cents to $27.37 on volume of about 37,000 shares.

Telecom services giant AT&T, Inc.’s 4.75% series C perpetual preferred stock began the morning under pressure.

The preferreds (NYSE: TPrC) were shaving off 2 cents to $24.88 with about 45,000 shares trading.

Meanwhile, real estate investment trust AGNC Investment Corp.’s 6.5% series E fixed-to-floating rate cumulative redeemable preferred stock was gaining ground.

The preferreds (Nasdaq: AGNCO) were improving by 10 cents to $22.75 on volume of about 35,000 shares.

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