Recent deals in focus; Ashford issue hits NYSE, Bluerock up next; bank-linked paper mixed

By Stephanie N. Rotondo

Seattle, July 19 – The preferred stock market was modestly higher in early Tuesday trading but retreated by the bell to close with a more negative tone.

The Wells Fargo Hybrid and Preferred Securities index finished off 4 basis points. It was up a like amount at mid-morning.

A trader commented that liquidity remained on the thin side.

“I thought we would see a [new] deal today, but nothing yet,” he said.

As for recently priced deals, Public Storage’s $300 million of 4.95% series D cumulative preferreds, which priced July 13, were “about the same,” trading around $24.90, a trader said.

The issue ended at $24.92, which was unchanged day over day.

Stifel Financial Corp.’s $150 million of 6.25% series A noncumulative perpetual preferreds were meantime seen at $25.95 bid in early trading, recovering the nickel lost in the previous session. But the preferreds re-lost that ground, closing unchanged at $25.90.

The paper did trade as high as $26.10 during the day’s session.

That issue came July 11.

From July 12 business, Dominion Resources Inc.’s $800 million of 2016 series A $25-par junior enhanced subordinated notes due 2076 were pegged at $24.90 bid, $24.97 offered.

Also from July 12 business, a trader said Bluerock Residential Growth REIT Inc.’s $57.5 million of 7.625% series C cumulative redeemable preferreds would list on the New York Stock Exchange on Wednesday.

The ticker will be “BRGPC.”

The preferreds bucked the day’s downward trend, rising 20 cents to $25.75.

Ashford Hospitality Trust Inc.’s $120 million of 7.375% series F cumulative preferreds meantime hit the NYSE on Tuesday under the ticker symbol “AHTPF.”

That deal came July 6, upsized from $75 million.

The preferreds were seen at $24.93 at the close, off from $24.95 at the open.

Bank issues trade mixed

Among more established issues, volume was picking up, though without any real catalyst to explain the surge.

HSBC Holdings plc’s 8% perpetual exchangeable subordinated capital securities (NYSE: HSEB) dominated the day, with nearly 1 million of the securities trading. The issue dipped 3 cents to $26.56.

Wells Fargo & Co.’s 5.5% series X class A noncumulative preferreds (NYSE: WFCPX) were also busy, but better, pushing up 11 cents to $26.20.

Ally Financial Inc.’s 8.125% series 2 fixed-to-floating rate trust preferred securities (NYSE: ALLYPA) have been active of late, and Tuesday was no different. The TruPs ended the day off 3 cents at $25.03.

As for Bank of America Corp., its 6% series EE noncumulative preferreds (NYSE: BACPA) ticked up 4 cents to $25.40. JPMorgan Chase & Co.’s 6.1% series AA noncumulative preferreds (NYSE: JPMPG) meantime fell 26 cents to $26.95.

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