Preferreds continue to climb higher; Navios Maritime improves on ruling; GSE paper mixed

By Stephanie N. Rotondo

Seattle, Dec. 22 – Preferred stocks remained firm on Thursday, spurred by economic data that painted a rosy picture, a trader said.

Based on the latest jobs figures, among other things, the economy “appears to be in better shape than analysts thought,” the trader commented.

The Wells Fargo Hybrid and Preferred Securities index traded up 24 basis points. The index was up 13 bps at mid-morning.

Navios Maritime Holdings Inc.’s preferreds were heading into higher territory after the company said that a London arbitration tribunal ruled that its 20-year contract with Vale International SA was in full effect.

The 8.625% series H cumulative redeemable perpetual preferreds (NYSE: NMPrH) rose $1.91, or 31.57%, to $7.96. The 8.75% series G cumulative redeemable perpetual preferreds (NYSE: NMPrG) increased $1.89, or 29.67%, to $8.26.

Vale had previously challenged the contract, which pertains to an iron ore port currently under construction. The tribunal, however, sided with Navios.

Additionally, the tribunal said that if Vale fights the contract further, Navios can cancel the deal and receive damages in the process.

Meanwhile, Fannie Mae and Freddie Mac preferreds were again among the top-trading securities, though still under 1 million shares apiece.

Fannie’s 8.25% series S fixed-to-floating rate noncumulative preferreds (OTCBB: FNMAS) dipped 6 cents to $7.85. Freddie’s 8.375% fixed-to-floating rate noncumulative preferreds (OTCBB: FMCKJ) meantime went the other direction, rising 20 cents, or 2.7%, to $7.60.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.