Morning Commentary: AT&T preferreds shoot higher; Capital One positive; AGNC improves

By James McCandless

San Antonio, March 3 – The preferred market opened Tuesday with more gains, bolstered by the Federal Reserve’s decision to cut interest rates by 50 basis points, as the Wells Fargo Hybrid & Preferred Securities Financial index began up by 0.31%.

The Federal Open Market Committee lowered the target Fed Funds range to between 1% and 1.25%.

Leading secondary trading early on, telecom name AT&T, Inc.’s 4.75% series C perpetual preferred stock was shooting higher.

The preferreds (NYSE: TPrC) were up 31 cents to $24.99 on volume of about 241,000 shares.

Meanwhile, in the finance space, Capital One Financial Corp.’s 4.8% series J fixed-rate non-cumulative perpetual preferred stock was similarly pushing upward.

The preferreds (NYSE: COFPrJ) were adding 34 cents to $24.93 with about 215,000 shares trading.

Sector peer Ally Financial, Inc.’s 8.125% series 2 fixed-to-floating rate trust preferred securities followed the morning’s trend.

The preferreds (NYSE: ALLYPrA) were improving by 14 cents to $25.97 on volume of about 60,000 shares.

Elsewhere, real estate investment trust AGNC Investment Corp.’s 6.125% series F fixed-to-floating rate cumulative redeemable preferred stock was picking up steam.

The preferreds (Nasdaq: AGNCP) were gaining 36 cents to $24.51 with about 132,000 shares trading.

Armour Residential REIT, Inc.’s 7% series C cumulative redeemable preferreds were also gaining.

The preferreds (NYSE: ARRPrC) were rising 5 cents to $25.02 on volume of about 75,000 shares.

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