Preferred stocks improve; Ashford, PS Business list; reinsurers weak to start, then rally

By Stephanie N. Rotondo

Seattle, Oct. 21 – The preferred stock market moved back into positive territory Friday after declining in the previous session.

The Wells Fargo Hybrid and Preferred Securities index closed up 50 basis points. The index was off 4 bps at Thursday’s close.

While the new issue market remained quiet, a trader said he was hearing that Wells Fargo Securities LLC was underwriting a deal for the coming week.

However, he did not have any specifics.

As for recent deals, Ashford Hospitality Trust Inc.’s $150 million of 7.375% series G cumulative preferred stock and PS Business Parks Inc.’s $165 million of 5.2% series W cumulative preferred shares listed on the New York Stock Exchange on Friday, as was expected.

Ashford’s ticker is “AHTPG.” PS Business’ is “PSBPW.”

The Ashford paper was seen around $24.90 at mid-morning, though it traded up to $24.98 by the bell. The issue opened the day at $24.88.

PS Business was meantime pegged around $25.01 to $25.02 at mid-morning but slipped to par by the close.

In the secondary, a trader said there was “selling pressure on reinsurers.” He said there was no real news to cause the weakness, though analysts across the board seem to think that the sector will not have a good quarter.

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