Bank earnings help preferred stocks gain momentum; primary quiet; new issues trade off

By Stephanie N. Rotondo

Seattle, Oct. 18 – The preferred stock market was “up a lot today,” a market source said on Tuesday.

“It seemed to be one of those risk-on days,” he said.

The Wells Fargo Hybrid and Preferred Securities index closed up 70 basis points.

On the heels of Bank of America Corp.’s earnings beat on Monday – as well as better-than-expected figures from Wells Fargo & Co., Citigroup Inc. and J.P. Morgan Chase & Co. on Friday – Goldman Sachs Group Inc. reported quarterly results that came in above expectations. Also topping estimates were numbers from hedge fund BlackRock Inc.

Still, the results have done little to move preferreds or to jumpstart the primary space.

As for deals that have hit the tape, a trader said Ashford Hospitality Trust Inc.’s $150 million of 7.375% series G cumulative preferreds were “off a little bit,” trading around $24.85 early in the session.

The paper closed at $24.90, down 5 cents.

The deal came Oct. 13 via Morgan Stanley & Co. LLC and UBS Securities LLC. The issue has a temporary ticker, “AHFH.”

PS Business Parks Inc.’s $165 million of 5.2% series W cumulative preferreds were meantime seen at $24.95 bid, par offered in early trading. However, that deal was also drifting lower, falling a dime to $24.88.

The issue came Oct. 11, with BofA Merrill Lynch, Morgan Stanley and Wells Fargo Securities LLC running the books. The temporary trading symbol is “PSBNL.”

© 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.