Citigroup leads market decline; AGNC preferreds lose; AT&T dives

By James McCandless

San Antonio, March 16 – The preferred market started a new week with a wholesale decline as fears of the economic impact of the coronavirus set in.

Leading the day’s decline, Citigroup Capital XIII’s 7.875% fixed-to-floating rate trust preferred securities drifted to lower levels.

Elsewhere in the finance space, Ally Financial, Inc.’s 8.125% series 2 fixed-to-floating rate trust preferred securities were also trimmed.

Sector peer Capital One Financial Corp.’s 4.8% series J fixed-rate non-cumulative perpetual preferreds followed the trend.

REIT AGNC Investment Corp.’s 6.125% series F fixed-to-floating rate cumulative redeemable preferreds were also seen losing.

Meanwhile, telecom company AT&T, Inc.’s 4.75% series C perpetual preferred stock was diving throughout the day.

Citigroup drops

Leading the day’s secondary decline, Citigroup’s .875% fixed-to-floating rate trust preferred securities drifted to lower levels by the end of the session.

The preferreds (NYSE: CPrN) were down $1.29 to close at $25.01 on volume of about 1.2 million shares.

On Friday, the preferreds shot up 76 cents.

Elsewhere in the finance space, Ally Financial’s 8.125% series 2 fixed-to-floating rate trust preferred securities were also trimmed.

The preferreds (NYSE: ALLYPrA) dropped $3.43 to close at $19.70 with about 1 million shares trading.

On Friday, the preferreds picked up 61 cents.

Sector peer Capital One’s 4.8% series J fixed-rate non-cumulative perpetual preferreds followed the overarching trend.

The preferreds (NYSE: COFPrJ) declined $4.99 to close at $16.86 on volume of about 739,000 shares.

AGNC loses

Real estate investment trust AGNC’s 6.125% series F fixed-to-floating rate cumulative redeemable preferreds were also seen losing ground.

The preferreds (Nasdaq: AGNCP) lopped off $1.14 to close at $16.61 with about 649,000 shares trading.

AT&T dives

Meanwhile, telecom company AT&T’s 4.75% series C perpetual preferred stock was diving throughout the day.

The preferreds (NYSE: TPrC) dived $2.40 to close at $19.60 on volume of about 572,000 shares.

On Friday, the preferreds improved by 53 cents.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index cratered 7.53% at the close, widening from a 5.78% slide from early Monday trading.

The iShares US Preferred Stock ETF was down $3.34 to $30.14.

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