Morning Commentary: Global Net Lease, AXA preferred shares on tap; Deutsche Bank lower

By James McCandless

San Antonio, Nov. 20 – At the week’s midpoint, the preferred space began with a tepid rise with the Wells Fargo Hybrid & Preferred Securities Financial index up by 0.03%.

In primary movement, Global Net Lease, Inc. announced plans to price an offering of $25-par series B cumulative redeemable perpetual preferred stock.

B. Riley FBR, Inc., BMO Capital Markets Corp., Ladenburg Thalmann & Co. Inc. and D.A. Davidson & Co. are the joint bookrunners.

The preferreds are redeemable after five years at par. Prior to that, the preferreds are redeemable within 90 days after a delisting event and within 120 days after a change of control at par.

Also, AXA Equitable Holdings, Inc. plans to price an offering of $25-par series A fixed-rate non-cumulative perpetual preferred stock, according to a 424B5 filing with the Securities and Exchange Commission.

Morgan Stanley & Co. LLC, BofA Securities, Inc., Wells Fargo Securities, LLC and J.P. Morgan Securities LLC are the joint bookrunners.

The preferreds are redeemable on or after Dec. 15, 2024 at par. Prior to that, the preferreds are redeemable within 90 days after a regulatory capital event at par and within 90 days after a rating agency event at $25.50.

In the secondary market, Deutsche Bank Contingent Capital Trust V’s 8.05% trust preferred securities started the day under pressure.

The preferreds (NYSE: DKT) were down by 4 cents to $25.42 on volume of about 238,000 shares.

Elsewhere in the finance space, CIT Group, Inc.’s 5.625% series B non-cumulative preferred stock was seen improving.

The preferreds (NYSE: CITPrB) were adding 13 cents to $25.92 with about 187,000 shares trading.

Sector peer Capital One Financial Corp.’s 5% series I fixed-rate non-cumulative perpetual preferreds were also gaining ground.

The preferreds (NYSE: COFPrI) were picking up 4 cents to $24.94 on volume of about 47,000 shares.

Annuities name American Equity Investment Life Holding Co.’s new 5.95% series A fixed-rate reset non-cumulative preferreds took a negative track as trading kicked off.

The preferreds, trading under the temporary symbol “AQYVL,” were losing 5 cents to $25.80 with about 138,000 shares trading.

Meanwhile, real estate investment trust PS Business Parks, Inc.’s 4.875% series Z cumulative preferred stock started with a modest rise.

The preferreds (NYSE: PSBPrZ) were better by 1 cent to $24.95 on volume of about 34,000 shares.

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