JPMorgan, Freddie Mac preferreds dip; Treasury rally, Greece news helps steady preferreds

By Christine Van Dusen

Atlanta, Feb. 20 – Investors on Friday were interested in issues from JPMorgan Chase & Co., Freddie Mac and Fannie Mae as an early and small rally in U.S. Treasuries – plus news that Greece would get an extension on its bailout – helped to steady the preferred stock market.

JPMorgan Chase’s $1.38 billion of 6.125% series Y noncumulative preferreds – slated to list on the New York Stock Exchange on Monday as “JPMPF” – ticked down on Friday morning, a trader said.

The stock was seen Friday at about $24.90, down 2 cents from Thursday’s $24.92, he said.

“They’re hanging in there,” he said, noting the paper was “marginally steadier today. They probably were trading as low as $24.85 on Thursday as bonds were getting whacked on Wednesday and Thursday, but with the tick up in Treasuries it’s quiet, a bit.”

The deal priced Feb. 5 with $1.2 billion shares sold. A $180 million greenshoe was exercised Feb. 9.

Freddie Mac, which reported disappointing fourth-quarter earnings on Thursday, also saw its preferreds dip on Friday morning. The mortgage company’s 8.375% fixed-to-floating rate noncumulative perpetual preferreds (OTCBB: FMCKJ) were spotted Friday morning at $4.43, down 2 cents from the previous day’s close. The notes closed at $4.45 on Friday afternoon.

Freddie Mac’s net income for the fourth quarter missed estimates at $227 million, versus $8.6 billion in the pervious year, as a result of losses from investments. Even with the news that a government-sponsored entity was planning to make a $900 million dividend payment to the Treasury Department next month – bringing the total amount paid back up to $91.8 billion – the agency’s preferred shares weakened at the end of the week.

Meanwhile, sister agency Fannie Mae saw its 8.25% series S fixed-to-floating rate noncumulative preferreds (OTCBB: FNMAS) traded at $4.70 on Friday, up 7 cents from Thursday, and closed there.

Volumes light

In other trading on Friday morning, Barclays Bank plc’s 8.125% non-cumulative callable dollar preference shares series 5 ADR were down 2 cents to $26.70.

RBS Capital Funding Trust V’s 5.9% noncumulative guaranteed trust preferred securities were seen dipping 3 cents to $24.55.

And Deutsche Bank Contingent Capital Trust III’s 7.6% trust preferred securities moved up 3 cents to $27.90 on Friday morning.

Greece news bolsters stock

On Friday afternoon, after the news from Greece was released, PrivateBancorp Capital Trust IV’s 10% trust preferred securities climbed 61 cents to $27.92 on 164,385 shares traded.

Wells Fargo & Co.’s 8% depository shares noncumulative perpetual CI A preferred stock, series J, dipped 4 cents to $29.42 on 138,495 shares traded.

And National Bank of Greece SA’s $2.25 noncumulative preference shares, series A, jumped 78 cents to close at $10.29 on 131,001 shares traded.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.