Preferred market finishes flat as desks empty for vacations; Invesco, Arch Capital list

By Stephanie N. Rotondo

Seattle, Aug. 21 – The preferred stock market attempted to end with a positive tone on Monday but eventually gave up the early modest gains to close a touch weaker.

The Wells Fargo Hybrid and Preferred Securities index finished off 1 basis point, after being up 1 bp at mid-morning. The U.S. iShares Preferred Stock ETF meantime ended 3 bps lower, though it was up 8 bps earlier in the day.

“It was pretty much flat today,” a market source said. He noted that things were dying down in the second half of the month.

“The next two weeks are probably the biggest vacation weeks,” he said. “I’m expecting it to be very, very quiet until the Wednesday after Labor Day.”

As for the day’s dealings, recently priced issues were getting listed.

Invesco Mortgage Capital Inc.’s $250 million of 7.5% fixed-to-floating rate series C cumulative redeemable preferred stock – a deal priced Aug. 9 – entered the established secondary on Monday, listing on the New York Stock Exchange under the ticker symbol “IVRPrC.”

Paper was trading at $24.95, down a dime.

The deal came Aug. 9.

Arch Capital Group Ltd.’s $200 million of 5.45% series F noncumulative preferred stock listed on the Nasdaq Global Select Market.

The ticker symbol is “ACGLO.”

Unlike the Invesco issue, the paper moved up to $24.99, which compared to $24.89 at the open.

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