Morning Commentary: Wells Fargo, Bank of America preferreds decline; Ashford lists on NYSE

By Stephanie N. Rotondo

Seattle, Aug. 29 – There was a bit more activity in the preferred stock market early Tuesday.

At mid-morning, Wells Fargo & Co. and Bank of America Corp. paper was trading busily and lower, though it was not clear what was driving the declines.

Wells Fargo’s 5.625% class A series Y noncumulative preferreds (NYSE: WFCPrY) were down 24 cents at $25.73, while BofA’s floating-rate series 5 noncumulative preferreds (NYSE: BMLPrL) were meantime down a dime at $23.95.

Elsewhere, Ashford Hospitality Trust Inc.’s $85 million of 7.5% series H cumulative redeemable preferreds – a deal priced Aug. 16 – listed on the New York Stock Exchange on Tuesday.

The ticker symbol is “AHTPrH.”

The preferreds were at $24.75 in early dealings, down a nickel.

Price talk on the issue was 7.5% to 7.625%. The deal was increased from $50 million

UBS Securities LLC and Morgan Stanley & Co. LLC were the joint bookrunners.

Overall, the market had a mixed tone to it at mid-morning, as the straight equity markets turned downward on renewed concerns about tensions with North Korea.

The Wells Fargo Hybrid and Preferred Securities index was up 3 basis points in early trading. The U.S. iShares Preferred Stock ETF was down a like amount.

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