Preferred stocks mixed in weak holiday trading; Compass lists on NYSE; PennyMac slightly better

By Stephanie N. Rotondo

Seattle, July 3 – The preferred stock market tried to gain ground in the short holiday session but eventually finished the day in mixed fashion.

The Wells Fargo Hybrid and Preferred Securities Index rose 16 basis points after being up 4 bps at mid-morning. The U.S. iShares Preferred Stock ETF, however, closed down 8 bps even though it was up 5 bps earlier in the session.

Liquidity was also rather limited, given the market’s early close in the bond market.

As was expected, Compass Diversified Holdings LLC’s $100 million of 7.25% series A preferred stock listed on the New York Stock Exchange on Monday, under the ticker symbol “CODIPrA.”

The paper added 8 cents on the day, closing at $24.83.

The deal came to market on June 19 via BofA Merrill Lynch and UBS Securities LLC.

Among other recently priced issues, PennyMac Mortgage Investment Trust’s $175 million of 8% series B fixed-to-floating rate cumulative redeemable preferreds – a deal priced on Tuesday – ticked up 3 cents to $24.88.

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

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

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