Morning Commentary: Preferreds rebound ahead of Fed announcement; Maiden, Validus list on NYSE

By Stephanie N. Rotondo

Seattle, June 15 – The preferred stock market was regaining ground in midweek trading after trading lower during the first part of the week.

The Wells Fargo Hybrid and Preferred Securities Index was up 26 basis points at mid-morning.

The gains come ahead of the Federal Reserve’s latest monetary policy statement, scheduled to be released at 2 p.m. ET. The market is waiting to see if the central bank will opt to raise interest rates this month or – as is now seen more likely – if the next hike will be kicked down the road to July or September.

As for preferred activity, Maiden Holdings Ltd.’s $110 million of 6.625% $25-par notes due June 14, 2046 and Validus Holdings Ltd.’s $150 million of 5.875% series A noncumulative preference stock both listed on the New York Stock Exchange on Wednesday.

Maiden’s ticker is “MHLA.” That issue came to market on June 7. Validus priced June 6 and is trading under the symbol “VRPA.”

Maiden was trading at $24.91 at mid-morning, down from opening levels of $24.92. Validus was seen at $24.75, off from $24.85 at the open.

Both issuers are Bermuda-based reinsurance companies.

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