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Preferred stock market remains under pressure after U.S. election; big banks get beaten
By Stephanie N. Rotondo
Seattle, Nov. 10 – The preferred stock market once again was experiencing “quite a decent sell-off in secondary issues,” a trader said Thursday.
Preferreds got slammed on Wednesday in the wake of the election results that gave Donald Trump, the Republican nominee, the presidency. That trend continued into Thursday.
However, in addition to the election upset, a trader commented that “a lot of stuff went ex-dividend, so that is throwing off prices as well.”
The Wells Fargo Hybrid and Preferred Securities index closed down 168 basis points, after being off 58 bps at mid-morning.
The index lost 87 bps on Wednesday.
While bank equities have rallied on Trump’s election – due to the belief that bank regulations would get watered down under his leadership – bank preferreds have not fared as well.
For instance, Wells Fargo & Co.’s 5.5% series X class A noncumulative preferreds (NYSE: WFCPX) declined 62 cents, or 2.49%, to $24.30.
In JPMorgan Chase & Co. paper, the 5.5% series O noncumulative preferreds (NYSE: JPMPD) waned 39 cents, or 1.56%, to $24.68. The 6.1% series AA noncumulative preferreds (NYSE: JPMPG) declined 80 cents, or 3.06%, to $25.36.
And, the 6.15% series BB noncumulative preferreds (NYSE: JPMPH) slid 82 cents, or 3.13%, to $25.39.
As for Citigroup Inc., its 6.3% series S noncumulative preferreds (NYSE: CPS) dropped 82 cents, or 3.15%, to $25.18.
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