Fannie Mae, Freddie Mac move on White House news; Bluerock dips; Qwest, BofA active

By Christine Van Dusen

Atlanta, Oct. 20 – Investors were keeping an eye on Fannie Mae and Freddie Mac on Tuesday after the White House declined to release the mortgage companies from government control.

In response, Fannie’s 8.25% series S fixed-to-floating rate noncumulative preferreds (OTCBB: FNMAS) opened on Tuesday at $5.04 and closed down 17 cents at $4.95.

The 8.25% series T noncumulative preferreds (OTCBB: FNMAT) moved down 14 cents to $7.09 at the open before closing on Tuesday at about $7.00.

Freddie’s 8.375% fixed-to-floating rate noncumulative perpetual preferreds (OTCBB: FMCKJ) dipped 10 cents to open at $5.05, then closed at $4.98.

“Other than a couple of issues, trading was very light,” a market source said.

Qwest Corp.’s 7.375% notes due 2051 dipped 5 cents to close at $25.67 on 1.48 million shares traded, he said.

Bank of America Corp.’s depository preferred shares, series H, were the next-most active on Tuesday, trading flat to Monday at $18.18 on 316,000 shares.

RBS Capital Funding Trust VII’s 6.08% noncumulative guaranteed trust preferreds, series G, finished the session at $24.6699, down almost 10 cents on 307,429 shares traded.

And Citigroup Inc.’s depository preferred shares, series J, closed Tuesday at $27.35, off 2.1 cents on 275,000 shares traded.

Also on Tuesday, the new issue from Bluerock Residential Growth REIT Inc. – $62.5 million 8.25% series A cumulative redeemable perpetual preferred stock (BRGPA) that priced last week at $25.00 per share – was seen at $24.85 bid on Tuesday morning and closed at about $25.35.

Wunderlich Securities Inc. and Compass Point were the joint bookrunning managers. DA Davidson & Co. and Janney Montgomery Scott LLC were co-lead managers.

Targa trades

In other trading, Houston-based Targa Resources Partners LP’s 9% fixed-to-floating rate cumulative redeemable preferred units (TGARP) traded Tuesday morning between $25.00 and $25.05 after Monday's level of $25.00 to $25.10, a trader said.

An additional $15 million of the units were sold Wednesday via Morgan Stanley & Co. LLC, BofA Merrill Lynch, UBS Securities LLC and Wells Fargo Securities LLC. Added to the $110 million initially sold on Oct. 7, total issuance comes to $125 million.

The over-allotment option allowed for up to $16.5 million additional units to be sold.

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