Wells Fargo active, unchanged; New Residential preferreds jump; AT&T gains

By James McCandless

San Antonio, May 5 – The preferred market trended upward on Tuesday, despite ending the session moving downward.

At the top of volume in the secondary, Wells Fargo & Co.’s 6.625% series R fixed-to-floating rate non-cumulative perpetual class A preferred stock was active but unchanged.

Elsewhere in the finance space, Morgan Stanley’s 5.85% series K fixed-to-floating rate non-cumulative preferred stock edged higher.

Sector peer Ally Financial, Inc.’s 8.125% series 2 fixed-to-floating rate trust preferred securities improved.

Meanwhile, REIT New Residential Investment Corp.’s 6.375% series C and 7.125% series B fixed-to-floating rate cumulative redeemable preferred stocks both jumped.

Telecom name AT&T Inc.’s 5% series A cumulative redeemable preferred stock ended the afternoon on the rise.

Wells Fargo active, flat

On top of the Tuesday secondary market, Wells Fargo’s 6.625% series R fixed-to-floating rate non-cumulative perpetual class A preferred stock was active but unchanged.

The preferreds (NYSE: WFCPrR) finished flat to close at $26.60 on volume of about 318,000 shares.

On Monday, the preferreds shaved off 4 cents.

Elsewhere in the finance space, Morgan Stanley’s 5.85% series K fixed-to-floating rate non-cumulative preferred stock edged higher.

The preferreds (NYSE: MSPrK) tacked on 1 cent to close at $26.05 with about 299,000 shares trading.

Sector peer Ally Financial’s 8.125% series 2 fixed-to-floating rate trust preferred securities improved.

The preferreds (NYSE: ALLYPrA) garnered 29 cents to close at $22.15 on volume of about 276,000 shares.

On Monday, the preferreds slid 28 cents.

New Residential up

Meanwhile, real estate investment trust New Residential’s 6.375% series C and 7.125% series B fixed-to-floating rate cumulative redeemable preferred stocks both jumped during the session.

The series C preferreds (NYSE: NRZPrC) hopped up $1.69 to close at $17.97 with about 305,000 shares trading.

The series B preferreds (NYSE: NRZPrB) improved by $1.12 to close at $18.70 with about 252,000 shares trading.

Early Tuesday morning, the company posted a 48 cents per share profit for the first quarter, better than the 17 cents per share loss that analysts had expected.

AT&T rises

Telecom name AT&T’s 5% series A cumulative redeemable preferred stock ended the afternoon on the rise.

The preferreds (NYSE: TPrA) picked up 3 cents to close at $25.05 on volume of about 217,000 shares.

Indexes mixed

The Wells Fargo Hybrid & Preferred Securities Financial index capped the day down by 0.32%, falling from a 0.05% rise in early Tuesday trading.

The iShares US Preferred Stock ETF ended level at $33.99.

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