Inauguration draws focus from preferreds; recent deals trade; Fannie, Freddie get a bounce

By Stephanie N. Rotondo

Seattle, Jan. 20 – Preferred stock investors were keeping an eye on Inauguration Day on Friday, resulting in limited trading in the space, according to a trader.

The trader said that the buzz was that the incoming president, Donald Trump, planned to sign a few executive orders immediately after getting sworn in to office. Though it is not clear exactly which orders he will jump on, the trader speculated that the move could “shake things up.”

The Wells Fargo Hybrid and Preferred Securities index closed up 10 basis points, though it was initially down 23 bps. The U.S. iShares Preferred Stock index was up 24 bps.

Among recently priced deals, Pennsylvania Real Estate Investment Trust’s $150 million offering of 7.2% series C cumulative redeemable preferreds were seen ending at $24.92, which was deemed unchanged day over day but up 2 cents from the open.

That compared to $24.90 bid, $24.97 offered early Thursday.

The non-rated deal came Wednesday, upsized from $75 million and tight to the 7.375% area price talk.

The issue is trading under a temporary symbol, “PNYLP.”

Wells Fargo Securities LLC, Citigroup Global Markets Inc., Jefferies, J.P. Morgan Securities LLC and Stifel Nicolaus & Co. Inc. ran the books.

As for secondary pieces, a trader noted that Fannie Mae and Freddie Mac preferreds were attempting to rebound a little after getting hit Thursday.

However, there was no fresh news to cause the rebound.

© 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.