Morning Commentary: Preferred stocks mixed as week nears its end; PS Business lists on NYSE

By Stephanie N. Rotondo

Seattle, Sept. 22 – Going into the end of the week, the preferred stock market was trading mixed as the broader markets drifted downward amid growing tensions between the United States and North Korea.

North Korea said it was considering testing a hydrogen bomb in the Pacific Ocean, which was a response to comments made by president Donald Trump at the United Nations earlier in the week. In his remarks, Trump indicated he was willing to use force on the reclusive nation.

The Wells Fargo Hybrid and Preferred Securities index was up 6 basis points at mid-morning. The U.S. iShares Preferred Stock ETF was down 3 bps.

More recently priced issues were getting listed on Friday, with PS Business Parks Inc.’s $200 million of 5.25% series X cumulative preferred stock being the latest to join the New York Stock Exchange.

The ticker is “PSBPrX.”

Paper was trading at $25.10 in early dealings, down 15 cents.

The issue priced Sept. 12. The $25-par deal was increased from an expected $100 million. Price talk was 5.25% to 5.375%.

BofA Merrill Lynch, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC were the joint bookrunners.

Meanwhile, AGNC Investment Corp.’s 7% series C fixed-to-floating rate cumulative redeemable preferreds (Nasdaq: AGNCN) were on the busier side – relatively speaking, given that Rosh Hashana was resulting in many empty desks – and a touch lighter in early trading.

The preferreds were off a penny at $25.35.

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