Preferreds improve; Annaly Capital, AGNC Investment weaken; RAIT Financial rebounds

By Abigail W. Adams

Portland, Me., Feb. 22 – Preferreds saw their third straight day of gains on Thursday after a tumultuous few weeks of mostly losses.

The Wells Fargo Hybrid & Preferred Securities Financial index was up 0.14% and the U.S. iShares Preferred Stock ETF was up 0.19% at the market close on Thursday.

While the broader market was up, Annaly Capital Management Inc.’s recently priced 6.95% series F cumulative redeemable preferred stock was down in heavy volume trading on Thursday.

AGNC Investment Corp.’s depositary shares representing the company’s 7% series C fixed-to-floating rate redeemable preferred stock was also down in heavy volume trading.

AGNC’s depositary shares were seen as an attractive alternative for portfolios that held Annaly’s series E preferred stock, which was recently redeemed, according to a market source.

RAIT Financial Trust’s series A to C cumulative redeemable preferred shares rebounded on Thursday and were among the day’s largest gainers after tanking on Wednesday.

The preferreds nosedived on Wednesday as investors responded to the conclusion of a review of strategic and financial alternatives for the Philadelphia-based real estate investment trust.

In trading, Annaly Capital Management’s 6.95% preferred stock, which priced in early January, was down in heavy volume trading on Thursday. The preferreds were down 7 cents, or 0.28%, to $25.13 at the market close.

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