MFA Financial under par; AT&T preferreds better; Wells Fargo negative

By James McCandless

San Antonio, Feb. 26 – The preferred market saw minute gains in the mid-week session, with newer issues dominating.

Leading the day’s volume, REIT MFA Financial, Inc.’s new $275 million 6.5% series C fixed-to-floating rate cumulative redeemable preferred stock closed under par.

Elsewhere, telecom name AT&T, Inc.’s 4.75% series C perpetual preferred stock was lifted to a better position by the end of the day.

Meanwhile, in the finance space, Wells Fargo & Co.’s 4.75% series Z non-cumulative perpetual class A preferreds trended negative.

Sector peer JPMorgan Chase & Co.’s 6% series EE non-cumulative preferred stock tracked higher.

Capital One Financial Corp.’s 4.8% series J fixed-rate non-cumulative perpetual preferred stock was under water.

MFA under par

Leading Wednesday’s volume, real estate investment trust MFA Financial’s new $275 million 6.5% series C fixed-to-floating rate cumulative redeemable preferred stock closed its first day under par.

The preferreds, trading under the temporary symbol “MFABO,” closed at $24.65 on volume of about 3.5 million shares.

The deal priced on Tuesday.

AT&T better

Elsewhere, telecom services name AT&T’s 4.75% series C perpetual preferred stock was lifted to a better position by the end of the day.

The preferreds (NYSE: TPrC) picked up 7 cents to close at $24.99 with about 1.4 million shares trading.

On Tuesday, the preferreds dipped 8 cents.

Wells Fargo down

Meanwhile, in the finance space, Wells Fargo’s 4.75% series Z non-cumulative perpetual class A preferreds trended negative.

The preferreds (NYSE: WFCPrZ) shaved off 1 cent to close at $25.25 on volume of about 1.3 million shares.

On Tuesday, the preferreds lost 11 cents.

Sector peer JPMorgan’s 6% series EE non-cumulative preferred stock tracked higher as the afternoon closed.

The preferreds (NYSE: JPMPrC) jumped up 16 cents to close at $27.29 with about 790,000 shares trading.

On Tuesday, the preferreds dived 41 cents.

Capital One’s 4.8% series J fixed-rate non-cumulative perpetual preferred stock was under water for most of the day.

The preferreds (NYSE: COFPrJ) declined by 1 cent to close at $24.69 on volume of about 697,000 shares.

On Tuesday, the preferreds fell 12 cents.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index inched up 0.02% by the close, walking back a 0.19% gain from early Wednesday trading.

The iShares US Preferred Stock ETF was up 3 cents to $37.14.

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