Wells Fargo negative; Armour preferreds below par; MetLife under water

By James McCandless

San Antonio, Jan. 24 – The preferred market finished the shortened week with an extension of the week’s negativity.

At the top of the secondary, Wells Fargo & Co.’s recent 4.75% series Z non-cumulative perpetual class A preferred stock led the market into negative territory.

Elsewhere in the finance space, Bank of America Corp.’s 5% series LL non-cumulative preferred stock slipped.

Real estate investment trust Armour Residential REIT, Inc.’s new $75 million 7% series C perpetual cumulative redeemable preferreds closed below par.

Sector peer Pennsylvania Real Estate Investment Trust’s 7.2% series C cumulative redeemable perpetual preferred stock cratered.

Meanwhile, insurance company MetLife, Inc.’s 4.75% series F non-cumulative preferred stock followed the market trend under water.

Wells Fargo down

Remaining at the top of the day’s secondary activity, Wells Fargo’s recent 4.75% series Z non-cumulative perpetual class A preferred stock led the market into negative territory.

The preferreds, trading under the temporary symbol “WFCZL,” were down 1 cent to close at $25.22 on volume of about 1.9 million shares.

On Thursday, the preferreds gained 8 cents.

Sector peer Bank of America’s 5% series LL non-cumulative preferred stock slipped by the end of the afternoon.

The preferreds (NYSE: BACPrN) shaved off 4 cents to close at $25.83 with about 837,000 shares trading.

Armour under par

Real estate investment trust Armour Residential’s new $75 million 7% series C perpetual cumulative redeemable preferreds closed their first day below par.

The preferreds, trading under the temporary symbol “ARMRP,” settled at $24.98 on volume of about 1.3 million shares.

The deal priced on Thursday.

Sector peer Pennsylvania REIT’s 7.2% series C cumulative redeemable perpetual preferred stock cratered.

The preferreds (NYSE: PEIPrC) crashed $1.39 to close at $16.10 with about 398,000 shares trading.

MetLife lower

Meanwhile, insurance company MetLife’s 4.75% series F non-cumulative preferred stock followed the market trend, closing under water.

The preferreds (NYSE: METPrF) declined by 12 cents to close at $25.49 on volume of about 1.2 million shares.

On Thursday, the preferreds rose 5 cents.

Indexes mixed

The Wells Fargo Hybrid & Preferred Securities Financial index ended the week down by 0.03%, adding to a 0.01% loss from early Friday trading.

The iShares US Preferred Stock ETF was level at $38.05.

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