New Chimera preferreds trade under par; JPMorgan declines; PG&E rebounds off lows

By James McCandless

San Antonio, Jan. 16 – Negativity was rampant in the preferred space on Wednesday with the focus on a new issue.

Chimera Investment Corp.’s new $185 million 8% series D fixed-to-floating rate cumulative redeemable preferred stock closed the session under par.

Another REIT, AGNC Investment Corp., saw its 7% series C fixed-to-floating rate cumulative redeemable preferreds head lower.

Elsewhere, in the finance space, JPMorgan Chase & Co.’s 5.75% series DD non-cumulative preferred stock declined.

In utilities, PG&E Corp.’s 6% cumulative nonredeemable first preferred stock was rising after a recent sell-off.

Sector peer Southern California Edison Co., a subsidiary of Edison International, saw its 5% cumulative trust preferreds drop.

Chimera under par

Leading trading volume on Wednesday, real estate investment trust Chimera’s new $185 million 8% series D fixed-to-floating rate cumulative redeemable preferred stock ended its first day of trading under par.

The preferreds, trading under the temporary symbol “CMIMP,” were seen ending the session at $24.65 on volume of about 3.2 million shares.

The deal priced on Jan. 15.

Elsewhere in the REIT space, AGNC’s 7% series C fixed-to-floating rate cumulative redeemable preferreds also fell.

The preferreds (Nasdaq: AGNCN) were down 9 cents to close at $25.40 with about 411,000 shares trading.

JPMorgan declines

In the finance space, JPMorgan’s 5.75% series DD non-cumulative preferred stock also declined in the Wednesday session.

The preferreds (NYSE: JPMPrD) lost 6 cents to close at $24.87 on volume of about 1.4 million shares.

On Tuesday, the preferreds fell 5 cents.

The company reported a $1.98 per share profit in the fourth quarter on Tuesday, falling short of analyst expectations of $2.20.

PG&E gains

Meanwhile, in utilities, PG&E’s 6% cumulative nonredeemable first preferred stock saw a boost after days of declines.

The preferreds (NYSE: PCGPrA) were up 49 cents to close at $14.81 with about 543,000 shares trading.

On Tuesday, the preferreds dropped $1.38.

The company’s preferreds have been under pressure over the past week as the company signaled it would file for Chapter 11 bankruptcy due to potential liabilities related to recent California wildfires.

Sector peer Southern California Edison’s 5% cumulative trust preferreds were dropping again in the day’s trading.

The preferreds (NYSE: SCEPrL) shed 40 cents to close at $17.60 on volume of about 441,000 shares.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index was down 0.34% at the close, extending an early decline of 0.04%.

The iShares US Preferred Stock ETF was down 3 cents to $35.33.

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