Cherry Hill, Fortress Biotech mixed after registering offerings; Allstate ends week down

By James McCandless

San Antonio, April 6 – The preferred market closed the week active as the focus stayed on news-driven names.

Cherry Hill Mortgage Investment Corp. preferreds rose again after it registered an at-the-market $35 million offering of its 8.2% series A preferreds.

Fortress Biotech, Inc. preferred stock traded down as the company registered to sell up to $26 million more of its 9.375% preferreds.

Allstate Corp. closed the week leading the secondary market again with its recent $500 million issue of $25-par perpetual preferred series G shares.

Cherry Hill climbs

A day after Cherry Hill registered an at-the-market offering to sell up to $35 million more of its 8.2% series A cumulative redeemable preferred stock, the securities were trading up again, a market source confirmed.

The preferreds were originally priced at $55 million in August 2017.

The series A preferreds traded up another 8 cents to end at $25.23 after a 9 cent gain Thursday.

Fortress plummets

Fortress Biotech registered to sell up to $26 million more of its 9.375% series A cumulative redeemable preferred stock Thursday, which traders confirmed spurred activity Friday after remaining untraded since earlier this week.

The original pricing in November was for $25 million with a 9.375% yield.

Traders reported seeing the preferreds in free fall, losing 89 cents to close at $22.00

Allstate down slightly

Allstate’s recent upsized $500 million of $25-par perpetual preferred series G shares, priced last Tuesday, continued to lead in the secondary market, as market sources noted it trading down to reflect the broader market trend.

The offering came with a 5.625% dividend that begins paying out on June 15, 2018.

In trading Friday, the preferreds lost 1 cent to close at $25.17 after rising 3 cents the previous day to reach $25.18.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index ended the week down 0.02% after being down as much as 0.20% in early trading.

The iShares US Preferred Stock ETF closed down 4 cents to end at $37.20

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