Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers S > Headlines for Spirit Realty Capital Inc. > News item |
Morning Commentary: Fannie, Freddie trade up before Watt’s testimony; Spirit Realty firms
By Stephanie N. Rotondo
Seattle, Oct. 3 – GSE-linked preferreds continued to dominate trading early Tuesday, as the market waits to see what Mel Watt, head of the Federal Housing Finance Agency, will tell the House Financial Services Committee.
Freddie Mac’s 8.375% fixed-to-floating rate noncumulative preferreds (OTCBB: FMCKJ) were up 25 cents, or 3.71%, at $6.98, while Fannie Mae’s 8.25% series S fixed-to-floating rate noncumulative preferreds (OTCBB: FNMAS) were up 20 cents, or 2.9%, at $7.10.
It is expected that Watt will again testify that a lack of a capital buffer at the GSEs poses a risk to taxpayers. Fannie and Freddie are allowed to have a very small capital cushion, though that number is set to hit zero in 2018.
But with no housing reform yet on the table, the threat could be enough that the committee might actually take action this go-round.
Meanwhile, Spirit Realty Capital Inc.’s 6% series A cumulative redeemable preferreds were on the active side.
The preferreds were trading up a dime to $25.10 at mid-morning.
The issue priced on Sept. 27. Its temporary ticker is “SPRYP.”
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.