Preferreds modestly firm as Fed holds rates steady; AmTrust’s new $25-par notes list

By Stephanie N. Rotondo

Phoenix, Sept. 17 – The preferred stock market improved Thursday as the Fed voted to keep interest rates steady.

The Wells Fargo Hybrid and Preferred Securities index closed up 3 basis points, though it was as much as 14 bps higher at one point.

The Fed’s policy was announced at 2 p.m. ET. Citing global economic concerns and domestic financial market volatility, the central bank chose to keep interest rates steady.

The vote was nearly unanimous at 9-1. However, the Fed did note that an increase could still occur before the end of the year.

“[It’s] good news for corporations bringing new issues,” a trader said. “Traders were hoping for a hike to see some volatility return.

As for the day’s preferred dealings, AmTrust Financial Services Inc.’s $125 million of 7.5% $25-par notes due 2055 were admitted to the New York Stock Exchange on Thursday.

The ticker symbol is “AFST.” The deal came Sept. 9.

The notes ended at $24.84, which compared to opening levels of $24.65.

A trader quoted the notes at $24.68 bid, $24.70 offered at mid-morning.

Among other recent deals, Wells Fargo & Co.’s $900 million of 6% series V class A noncumulative preferreds (NYSE: WFCPV) remained active, trading up 8 cents to $25.03.

The issue priced Sept. 8.

© 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.