Capital One positive; Public Storage jumps; AGNC preferreds decline

By James McCandless

San Antonio, Oct. 10 – The preferred space saw moderate positivity on Thursday, although volume leaders weren’t cohesive.

New York Mortgage Trust, Inc. priced a $150 million offering of $25-par series E fixed-to-floating rate cumulative redeemable preferred stock with an initial dividend of 7.875%.

Leading secondary trading again, Capital One Financial Corp.’s 5% series I fixed-rate non-cumulative perpetual preferred stock was positive.

Elsewhere in finance, Citigroup Capital XIII’s 7.875% fixed-to-floating rate trust preferred securities also improved.

Sector peer Bank of America Corp.’s 5% series LL non-cumulative preferred stock shifted lower.

Meanwhile, REIT Public Storage, Inc.’s 4.875% series I cumulative preferred shares jumped higher.

AGNC Investment Corp.’s 6.5% series E fixed-to-floating rate cumulative redeemable preferreds saw a dip.

New York Mortgage prices

In the primary market, New York Mortgage priced a $150 million offering of $25-par series E fixed-to-floating rate cumulative redeemable preferred stock with an initial dividend of 7.875%.

There is a $22.5 million greenshoe.

Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, RBC Capital Markets, LLC, UBS Securities LLC and Keefe, Bruyette & Woods, Inc. are the joint bookrunners.

The dividend is fixed until Jan. 15, 2025, then converts to a floating rate of Libor plus 642.9 basis points.

The preferreds are redeemable on or after Jan. 15, 2025 at par. Prior to that, the preferreds are redeemable within 120 days after a change-of-control at par.

Capital One positive

Leading secondary trading for another day, Capital One’s 5% series I fixed-rate non-cumulative perpetual preferred stock finished the day positive.

The preferreds (NYSE: COFPrI) were up 2 cents to close at $25.00 on volume of about 369,000 shares.

On Wednesday, the preferreds rose 9 cents.

Elsewhere in the finance space, Citigroup’s 7.875% fixed-to-floating rate trust preferred securities also improved.

The preferreds (NYSE: CPrN) gained 2 cents to close at $27.68 with about 221,000 shares trading.

Sector peer Bank of America’s 5% series LL non-cumulative preferred stock shifted lower by the close.

The preferreds (NYSE: BACPrN) declined by 1 cent to close at $25.69 on volume of about 187,000 shares.

On Wednesday, the preferreds picked up 6 cents.

Public Storage jumps

Meanwhile, real estate investment trust Public Storage’s 4.875% series I cumulative preferred shares jumped higher by the end of the session.

The preferreds (NYSE: PSAPrI) shot up 21 cents to close at $26.37 with about 238,000 shares trading.

AGNC, another REIT, saw its 6.5% series E fixed-to-floating rate cumulative redeemable preferreds take a dip.

The preferreds (Nasdaq: AGNCO) fell 14 cents to close at $25.11 on volume of about 231,000 shares.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index was up 0.08% by the end of the day, slightly reduced from a 0.11% gain in early Thursday trading.

The iShares US Preferred Stock ETF was up 5 cents to $37.29.

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