Morning Commentary: Preferreds gain, liquidity diminished; TravelCenters ‘hanging’ in; Goodrich up

By Stephanie N. Rotondo

Phoenix, Dec. 15 – The preferred stock market was trending higher as the week began.

The Wells Fargo Hybrid and Preferred Securities index was up 8 basis points at mid-morning. It had been up as much as 12 bps earlier in the session.

Despite the firm tone of the market, a trader said liquidity was dwindling, likely as players prepare for the upcoming holidays.

“Everything’s just kind of hanging around,” he said, adding that he had yet to hear of any new issues for the week.

In deals from the previous week, TravelCenters of America LLC’s $120 million of 8% $25-par senior notes due 2029 – a deal priced Tuesday – was even quieting down, the trader said.

“It’s not trading really,” he said, seeing a $24.60 bid early in the day. However, he noted that the paper had been trading around $24.80 on Friday and opined that “it’s probably hanging around that same area.”

In secondary dealings, Goodrich Petroleum Corp.’s 9.75% series D cumulative preferreds (NYSE: GDPPD) were moving up even as oil prices were mixed.

The preferreds were up 42 cents, or 5.2%, at $8.49.

© 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.