Preferred stocks mostly improve; Kimco, Cedar securities soften; financials mixed

By Cristal Cody

Tupelo, Miss., Dec. 15 – Preferred stocks opened on Friday stronger and remained mostly positive over the session, while the primary market stayed quiet.

The Wells Fargo Hybrid and Preferred Securities index ended the session up 8 basis points.

The U.S. iShares Preferred Stock ETF rose 37 bps on the day.

In new issue trading, Kimco Realty Corp.’s 5.25% class M cumulative redeemable preferred shares softened. The preferreds were weaker in afternoon trading at $24.65 bid, $24.72 offered, a market source said.

Kimco, a New Hyde Park, N.Y.-based real estate investment trust, sold $230 million of the $25-par class M cumulative redeemable preferred shares (Baa2/BBB-/BBB-) on Monday.

Cedar Realty Trust, Inc.’s 6.5% series C cumulative redeemable preferred stock (NYSE: CDRPrC) that was reopened in a $50 million tap on Wednesday at $25.00 per share was quoted 13 cents weaker at $24.53 in trading on Friday.

In other trading, Wells Fargo & Co.’s 8% series J non-cumulative perpetual class A preferred shares (NYSE: WFCPrJ) closed up 1 cent at $25.58.

The preferred stock has been active in trading over the past month since it was not expected to be called on Friday, its first optional call date.

Elsewhere, Morgan Stanley’s series A perpetual floating-rate noncumulative preferred stock (NYSE: MSPrA) fell 1 cent in light trading to $23.03 on Friday.

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