Preferreds rebound; Ashford Hospitality’s new issue frees to trade; Deutsche Bank lower

By Stephanie N. Rotondo

Seattle, July 7 – The preferred stock market was again looking to recoup losses from earlier in the week in Thursday trading.

The Wells Fargo Hybrid and Preferred Securities index ended up 20 basis points, after being up 30 bps at mid-morning. The index closed up 4 bps on Wednesday, though it was down 17 bps in early trading.

The course reversal into positive territory came after the Federal Reserve released the minutes from its latest policy meeting. The minutes showed that the central bank wanted to see how the United Kingdom’s Brexit vote turned out before making a firm decision on an interest rate increase. A week later, the U.K. opted to leave the European Union, a surprise move that roiled the markets.

As for preferred dealings, Ashford Hospitality Trust Inc.’s $120 million of 7.375% series F cumulative preferreds – a deal priced Wednesday – had freed to trade by mid-morning, according to a trader.

At the bell, a market source saw the issue at $25.14, “which was probably reflective of the market.”

Meanwhile, Deutsche Bank AG’s trust preferred securities attempted to rise with the market on Thursday. Alas, the preferreds failed to do so.

The 7.6% TruPs (NYSE: DTK) closed at $24.69, off 16 cents. That issue was up 8 cents earlier in the day.

The 8.05% TruPs (NYSE: DKT), however, were weak all around. The preferreds ended at $25.13, down 13 cents. The paper was off a dime at mid-morning.

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