Morning Commentary: MainStreet, Capital One preferreds on deck; Ally Financial improves

By James McCandless

San Antonio, Sept. 10 – The preferred market opened Thursday with another positive push as the Wells Fargo Hybrid & Preferred Securities Financial index started up by 0.21%.

In early primary activity, MainStreet Bancshares, Inc. announced plans to price an offering of series A fixed-rate non-cumulative perpetual preferred stock.

The preferreds have a liquidation preference of $1,000 per share.

B. Riley Securities, Inc., Boenning & Scattergood, Inc., D.A. Davidson & Co. and Janney Montgomery Scott LLC are the bookrunners.

The preferreds are redeemable on or after Sept. 30, 2025 at par. Prior to that, the preferreds are redeemable within 90 days after a regulatory capital treatment event.

Also, Capital One Financial Corp. plans to price an offering of $1,000-par series K fixed-rate non-cumulative perpetual preferred stock.

BofA Securities, Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities, LLC are the bookrunners.

The preferreds are redeemable on or after Dec. 1, 2025 at par. Prior to that, the preferreds are redeemable within 90 days after a regulatory capital treatment event.

The company’s established 5% series I fixed-rate non-cumulative perpetual preferred stock was trading higher.

The preferreds (NYSE: COFPrI) were up 8 cents to $25.11 on volume of about 90,000 shares.

Elsewhere in the finance space, Ally Financial, Inc.’s 8.125% series 2 fixed-to-floating rate trust preferred securities were seen improving.

The preferreds (NYSE: ALLYPrA) were gaining 12 cents to $24.84 with about 92,000 shares trading.

Sector peer Morgan Stanley’s 6.875% series F fixed-to-floating rate non-cumulative preferred stock followed the morning trend.

The preferreds (NYSE: MSPrF) were tacking on 16 cents to $28.27 on volume of about 79,000 shares.

Rural lender Federal Agricultural Mortgage Corp.’s 5.25% series F non-cumulative preferred stock was picking up steam.

The preferreds (NYSE: AGMPrF) were garnering 15 cents to $25.95 with about 92,000 shares trading.

Meanwhile, in communications, Qwest Corp.’s 6.5% notes due 2056 were also trending along a positive track.

The notes (NYSE: CTBB) were adding 3 cents to $25.15 on volume of about 53,000 notes.

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