Morning Commentary: AG Mortgage to sell preferreds; New Residential dips; JPMorgan up

By James McCandless

San Antonio, Sept. 11 – The preferred market continued much of the week’s negativity early with the Wells Fargo Hybrid & Preferred Securities Financial index down by 0.12%.

The primary market saw AG Mortgage Investment Trust, Inc. preparing to price an offering of $25-par series C fixed-to-floating rate cumulative redeemable preferred stock.

BofA Securities, Inc., Morgan Stanley & Co. LLC, RBC Capital Markets LLC, UBS Securities LLC and Keefe, Bruyette & Woods, Inc. are the joint bookrunners.

The dividend is fixed until Sept. 17, 2024, then converts to a floating rate of Libor plus a spread.

The preferreds are redeemable on or after Sept. 17, 2024 at par. Prior to that, they are redeemable within 120 days after a change-of-control event at par.

In secondary trading, real estate investment trust New Residential Investment Corp.’s 7.125% series B fixed-to-floating rate cumulative redeemable preferreds saw a slight dip.

The preferreds (NYSE: NRZPrB) were down 2 cents to $24.90 on volume of about 260,000 shares.

Meanwhile, in the banking and finance space, JPMorgan Chase & Co.’s 6% series EE non-cumulative preferreds opened the day on the positive side.

The preferreds (NYSE: JPMPrC) were gaining 1 cent to $28.24 with about 161,000 shares trading.

Sector peer Wells Fargo & Co.’s 6.625% series R fixed-to-floating rate non-cumulative perpetual class A preferreds were also rising modestly.

The preferreds (NYSE: WFCPrR) were adding 1 cent to $27.71 on volume of about 122,000 shares.

Capital One Financial Corp.’s recent 5% series I fixed-rate non-cumulative perpetual preferred stock was relatively active but unchanged in early activity.

The preferreds, trading under the temporary symbol “COFOL,” were level at $24.75 with about 79,000 shares trading.

Utilities operator Duke Energy Corp.’s 5.75% series A cumulative redeemable perpetual preferred stock was in decline, following the prevailing trend.

The preferreds (NYSE: DUKPrA) were off 6 cents to $27.44 on volume of about 50,000 shares.

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