Preferreds finish month with a firm tone; PennyMac unchanged; Compass set to list

By Stephanie N. Rotondo

Seattle, June 30 – The preferred stock market managed to end the month- and quarter-end session with on a positive note, though it was not able to entirely erase Thursday’s losses.

The Wells Fargo Hybrid and Preferred Securities Index improved 8 basis points, while the U.S. iShares Preferred Stock ETF was up 26 bps.

The market indicators had slipped 19 bps and 29 bps, respectively, on Thursday.

PennyMac Mortgage Investment Trust’s $175 million of 8% series B fixed-to-floating rate cumulative redeemable preferreds – a deal priced on Tuesday – continued to be in focus, but finished the session unchanged at $24.85.

The issue was the top trader of the day, with nearly 765,000 shares being exchanged.

The deal came at the tight end of the 8% to 8.125% price talk and was upsized from $75 million. It is trading under a temporary ticker, “PNNMP.”

Morgan Stanley & Co. LLC, Keefe, Bruyette & Woods Inc. and RBC Capital Markets ran the books.

Meanwhile, a market source said that Compass Diversified Holdings LLC’s $100 million of 7.25% series A preferred stock are expected to list on the New York Stock Exchange on Monday under the ticker symbol “CODIPrA.”

The issue currently has a temporary symbol, “CMMPP.”

A trader said that paper was trading around $24.75, but that the preferreds “should move higher” once listed.

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