Morning Commentary: AXIS, People’s United deals decline with market; Fannie Mae posts profit

By Stephanie N. Rotondo

Seattle, Nov. 3 – The preferred stock market was again under pressure early Thursday.

“The jobs number was uneventful,” a trader said, as U.S. jobless claims increased to highs not seen since August.

The trader also noted that Treasuries were slipping on concerns about the United Kingdom’s Brexit plan.

The Wells Fargo Hybrid and Preferred Securities index was off 30 basis points at mid-morning.

AXIS Capital Holdings Ltd.’s $550 million of 5.5% series E noncumulative preferreds – a deal priced Monday and trading under a temporary ticker, “AXHHF” – were once again trading actively, though also softer in line with the broader market.

A trader placed the issue at $24.80 bid, $24.87 offered.

People’s United Financial Inc.’s 5.625% fixed-to-floating rate noncumulative preferreds were meantime pegged at $25.95 bid, $26.00 offered.

Another source saw the issue at $26.05, off 26 cents.

The $250 million deal priced Oct. 24. The preferreds are trading under a temporary symbol, “PPLUP.”

Among more established issues, a trader remarked that Fannie Mae had reported earnings and planned to send a $3 billion dividend payment to the Treasury Department.

The GSE saw its profit increase nearly threefold year over year, despite a decline in revenue.

However, there were little goings-on in the name as of mid-morning.

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