New Residential preferreds top par; Oaktree Capital lower; Athene weakens slightly

By James McCandless

San Antonio, June 26 – The preferred space saw broad declines, extending its negative trend for the week.

On its first day, real estate investment trust New Residential Investment Corp.’s new $135 million 7.5% series A fixed-to-floating rate cumulative redeemable preferred stock ended above par.

Elsewhere, in finance, Oaktree Capital Group, LLC’s 6.55% series B non-cumulative preferred units finished lower.

Sector peer Bank of America Corp.’s 6% series GG non-cumulative preferreds were also in decline.

Retirement services company Athene Holding Ltd.’s 6.35% series A fixed-to-floating rate perpetual non-cumulative preference shares followed the downward trend.

Meanwhile, asset manager Annaly Capital Management, Inc.’s new 6.75% series I fixed-to-floating rate cumulative redeemable perpetual preferred stock was also trailing.

New Residential above par

On its first trading day, New Residential’s new $135 million 7.5% series A fixed-to-floating rate cumulative redeemable preferred stock was seen ending above par.

The preferreds, trading under the temporary symbol “NRXPP,” was spotted closing at $25.18 on volume of about 2.6 million shares.

The deal priced on Tuesday.

Oaktree lower

Elsewhere, in the finance space, Oaktree’s 6.55% series B non-cumulative preferred units finished the session lower.

The preferreds (NYSE: OAKPrB) lost 4 cents to close at $25.94 with about 1.1 million shares trading.

Sector peer Bank of America’s 6% series GG non-cumulative preferreds were also in decline throughout Wednesday.

The preferreds (NYSE: BACPrB) dropped 9 cents to close at $26.63 on volume of about 339,000 shares.

Athene slips

Athene’s 6.35% series A fixed-to-floating rate perpetual non-cumulative preference shares followed the day’s downward trend.

The preferreds (NYSE: ATHPrA) shaved off 1 cent to close at $26.07 with about 1 million shares trading.

On Tuesday, the preferreds declined by 1 cent.

Annaly trails

Asset manager Annaly Capital’s new 6.75% series I fixed-to-floating rate cumulative redeemable perpetual preferred stock was also trailing.

The preferreds, trading under the temporary symbol “ACAXP,” gave back 10 cents to close at $24.75 on volume of about 695,000 shares.

On Tuesday, the preferreds added 11 cents.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index was down 0.19% by the day’s end, reversing a 0.03% rise in early Wednesday trading.

The iShares US Preferred Stock ETF was down 5 cents to $36.81.

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