Preferreds recover; PennyMac frees to trade; banks mostly better as capital plans approved

By Stephanie N. Rotondo

Seattle, June 28 – The preferred stock market regained ground lost in the previous session on Wednesday.

The Wells Fargo Hybrid and Preferred Securities Index rose 10 basis points and the U.S. iShares Preferred Stock ETF was up 20 bps.

The Wells Fargo index closed off 3 bps on Tuesday, while the ETF declined 23 bps.

PennyMac Mortgage Investment Trust’s $175 million of 8% series B fixed-to-floating rate cumulative redeemable preferreds – a deal priced Tuesday – freed to trade at 12:30 p.m. ET, according to one trader.

Another market source placed the preferreds in a $24.79 to $24.86 context.

“Could be better, could be worse,” the source said. “But it has been fairly active on a day with not alot of volume.”

Away from the new issue, Fannie Mae and Freddie Mac preferreds continued to wane despite the overall positive tone of the day.

The preferreds were also lower in Tuesday trading after it was reported that senators Corker and Warner were once again teaming up on a GSE reform bill. This time the duo is said to be seriously considering a plan that would break the agencies into pieces.

Meanwhile, U.S.-based banks were mostly better on the day as the Federal Reserve announced that it had approved the capital plans of each one.

© 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.