AT&T preferreds positive; Capital One lifted; MFA Financial gains

By James McCandless

San Antonio, March 3 – The preferred market was split with losses and gains on Tuesday in reaction to the Federal Reserve’s decision to give a half percent haircut to interest rates.

Remaining most active in the secondary, telecom name AT&T, Inc.’s 4.75% series C perpetual preferred stock saw positivity.

Elsewhere, in the finance space, Capital One Financial Corp.’s 4.8% series J fixed-rate non-cumulative perpetual preferred stock was also lifted.

Sector peer Morgan Stanley’s 5.85% series K fixed-to-floating rate non-cumulative preferreds were pushed lower.

REIT MFA Financial, Inc.’s 6.5% series C fixed-to-floating rate cumulative redeemable preferred stock marked the day with a gain.

Meanwhile, insurance company MetLife, Inc.’s 4.75% series F non-cumulative preferred stock was under pressure.

AT&T up

Remaining at the top of secondary trading activity, telecom name AT&T’s 4.75% series C perpetual preferred stock saw more positivity.

The preferreds (NYSE: TPrC) were up 28 cents to close at $24.96 on volume of about 1 million shares.

On Monday, the preferreds tacked on 29 cents.

Capital One better

Elsewhere, in the finance space, Capital One’s 4.8% series J fixed-rate non-cumulative perpetual preferred stock was also lifted.

The preferreds (NYSE: COFPrJ) improved by 26 cents to close at $24.85 with about 862,000 shares trading.

On Monday, the preferreds shot up 30 cents.

Sector peer Morgan Stanley’s 5.85% series K fixed-to-floating rate non-cumulative preferreds were pushed lower by the end of the session.

The preferreds (NYSE: MSPrK) dropped 34 cents to close at $27.01 on volume of about 542,000 shares.

MFA gains

Real estate investment trust MFA Financial’s 6.5% series C fixed-to-floating rate cumulative redeemable preferred stock marked the day with a gain.

The preferreds, trading under the temporary symbol “MFABO,” tacked on 20 cents to close at $24.54 with about 611,000 shares trading.

MetLife down

Meanwhile, insurance company MetLife’s 6.5% series C fixed-to-floating rate cumulative redeemable preferred stock was under pressure.

The preferreds (NYSE: METPrF) moved down 35 cents to close at $25.15 on volume of about 607,000 shares.

On Monday, the preferreds jumped up 92 cents.

Indexes mixed

The Wells Fargo Hybrid & Preferred Securities Financial index settled the session up by 0.20%, giving back some of the 0.31% rise from early Tuesday trading.

The iShares US Preferred Stock ETF was down 3 cents to $36.66.

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