Liquidity lacking in preferred market ahead of Fed meeting results; AmTrust ends steady

By Stephanie N. Rotondo

Phoenix, March 17 – St. Patrick’s Day wasn’t starting out so festive in the preferred stock market, according to a trader.

“It’s just quiet,” he said, noting that no new deals had been announced as of early Tuesday.

However, “I have seen quite a bit of filings, so I’m guessing we’ll probably see something later this week.”

In recent deals, AmTrust Financial Services Inc.’s $165 million of 7.5% $25-par series D noncumulative preferreds were “moving up nicely,” the trader said.

He pegged the issue at $24.88 bid, $24.92 offered at mid-morning. However, the preferreds ultimately ended unchanged day over day at $24.95, though that was down from opening levels of $24.98.

The deal came Thursday and freed to trade on Friday. On Monday, the new shares were assigned a temporary trading symbol of “AMSVP.”

Meanwhile, Hancock Holding Co.’s $150 million of 5.95% $25-par notes due 2045 – priced March 2 – were seen at $24.10.

A trader remarked that the paper had yet to receive a reporting symbol and he was not sure when the notes would list on the Nasdaq Global Select Market.

Overall, the secondary market was drifting downward in Tuesday trading.

The Wells Fargo Hybrid and Preferred Securities index closed off 3 basis points but was down as much as three times that amount at midday, according to a market source.

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