Morning Commentary: Preferreds remain firm though volume shrinks; Red Mountain to hold call

By Stephanie N. Rotondo

Phoenix, Aug. 19 – Preferred stocks were edging higher again on Tuesday, even as liquidity thinned out.

“It’s just very, very quiet,” a trader said. “Things are just really slow. The [Treasury] bond market was down quite a bit yesterday and back again today. There’s not a lot of inquiries.”

The Wells Fargo Hybrid and Preferred Securities index was up 4 basis points at mid-morning.

Red Mountain Resources Inc. will hold a conference call later in the day to discuss a proposed offering of 10% series A cumulative redeemable preferreds.

The deal is being led by Northland Capital Markets and Euro Pacific Capital.

The call will take place at 2:30 p.m. ET.

However, there has been little to no word about any new issues for the week.

In recent deals, RAIT Financial Trust’s $70 million of 7.125% $25-par notes due 2019 were gaining ground, as a trader said the issue was offered at $24.85.

The new issue priced Aug. 11.

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