Midday Commentary: Capstead Mortgage to price cumulative preferreds; Saratoga notes over par

By Stephanie N. Rotondo

Phoenix, May 8 - Capstead Mortgage Corp. announced a new issue for the midweek session.

The Dallas-based real estate investment trust said it would sell series E cumulative redeemable preferreds. A trader said price talk was around 7.5%.

The trader saw the issue trading at $24.90 in the midday gray market.

In other recent deals, Saratoga Investment Corp.'s $42 million of 7.5% $25-par fixed-rate notes due 2020 - a deal that priced Friday and freed up on Tuesday - were quoted at $25.05 bid, $25.10 offered.

Tsakos Energy Navigation Ltd.'s $50 million of 8% series B cumulative redeemable preferreds were meantime dubbed "a dog" by one trader.

"They've just been sitting there at $24.50," he said of the issue that priced on Thursday. "It's probably a manager."

And, PNC Financial Services Group Inc.'s 4.85% $1,000-par fixed-to-floating rate noncumulative perpetual preferreds were pegged at "101-plus" bid.

That deal also priced Thursday.

As for secondary issues, a trader said "we're seeing a little more action in Freddie Mac and Fannie Mae." He remarked that there were "strong buyers" for the agency preferreds.

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