Morning Commentary: Triton, JPMorgan offer preferreds; Capital One gains; AGNC lower

By James McCandless

San Antonio, Oct. 31 – The preferred market opened Thursday with a broad decline as the Wells Fargo Hybrid & Preferred Securities Financial index started down by 0.15%.

In primary activity, Triton International Ltd. announced plans to price an offering of $25-par series C cumulative redeemable perpetual preference shares.

Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, UBS Securities LLC, Wells Fargo Securities, LLC and Keefe, Bruyette & Woods, Inc. are the joint bookrunners.

The preferreds are redeemable on or after Dec. 15, 2024 at par. Prior to that, the preferreds are redeemable within 120 days after a change-of-control triggering event.

Meanwhile, JPMorgan Chase & Co. plans to price an offering of $25-par series GG non-cumulative preferred stock.

J.P. Morgan Securities LLC is the bookrunner.

In the secondary, its established 5.45% series P and 6.125% series Y non-cumulative preferreds were both declining early.

The series P preferreds (NYSE: JPMPrA) were down 47 cents to $25.18 on volume of about 198,000 shares.

The series Y preferreds (NYSE: JPMPrF) were off 1 cent to $25.38 on volume of about 72,000 shares.

The company also plans to redeem the series P preferreds.

Elsewhere in the finance space, Capital One Financial Corp.’s 5% series I and 6.7% series D fixed-rate non-cumulative perpetual preferred stock saw gains at the beginning of trading.

The series I preferreds (NYSE: COFPrI) were adding 3 cents to $25.16 with about 123,000 shares trading.

The series D preferreds (NYSE: COFPrD) were gaining 2 cents to $25.40 with about 80,000 shares trading.

Sector peer Citizens Financial Group, Inc.’s 5% series E fixed-rate non-cumulative perpetual preferred stock opened weaker.

The preferreds (NYSE: CFGPrE) were losing 3 cents to $24.97 on volume of about 113,000 shares.

Real estate investment trust AGNC Investment Corp.’s 6.5% series E fixed-to-floating rate cumulative redeemable preferreds were under pressure.

The preferreds (Nasdaq: AGNCO) were off by 2 cents to $25.58 with about 97,000 shares trading.

New York Mortgage Trust, Inc.’s 7.875% series E fixed-to-floating rate cumulative redeemable preferreds started the session positively.

The preferreds (Nasdaq: NYMTM) were improving by 8 cents to $25.04 on volume of about 94,000 shares.

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