Preferred stocks strong as quarter ends; Tsakos gains; New York Community Bancorp slips

By Stephanie N. Rotondo

Seattle, March 31 – As the month – and quarter – neared its end, the preferred stock market had a firm feel.

The Wells Fargo Hybrid and Preferred Securities index was up 17 basis points on Friday. The U.S. iShares Preferred Stock ETF was up a like amount, though it had been down earlier in the day.

“There’s nothing really moving,” a trader lamented.

In the week’s new issues, Tsakos Energy Navigation Ltd.’s new $100 million of 9.25% series E fixed-to-floating rate cumulative redeemable preferreds were firming, with a trader quoting the paper at $24.90 bid, $24.95 offered.

Another source said the preferreds finished 8 cents higher at $24.98.

The deal priced late Wednesday, coming upsized from $50 million. The preferreds are trading under a temporary ticker, “TNPEP.”

Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, UBS Securities LLC, Citigroup Global Markets Inc. and Stifel Nicolaus & Co. Inc. ran the books.

Scorpio Tankers Inc.’s $50 million of 8.25% $25-par senior notes due 2019 – a deal priced on Tuesday – were meantime seen at $24.75 bid, $24.80 offered.

That was down from trades around par on Thursday.

Global Indemnity Ltd.’s $130 million of 7.875% $25-par subordinated notes due 2047 – a deal from March 16 – was then pegged at $24.85.

A trader noted that the issue has yet to get a symbol, though the notes are expected to begin trading on the Nasdaq Global Select Market under “GBLIL” soon.

As for other deals that came during the month, New York Community Bancorp Inc.’s $515 million of 6.375% series A fixed-to-floating rate noncumulative perpetual preferred stock (NYSE: NYCBPrA) were active, but weaker, falling 15 cents to $27.10.

The deal came March 10.

Meanwhile, Fannie Mae and Freddie Mac preferreds continued their busy streak but were softer for the second straight session.

Fannie’s 8.25% series S fixed-to-floating rate noncumulative preferreds (OTCBB: FNMAS) declined 20 cents, or 2.95%, to $6.59. Freddie’s 8.375% fixed-to-floating rate noncumulative preferreds (OTCBB: FMCKJ) dropped 17 cents, or 2.65%, to $6.25.

The GSE-linked preferreds were better earlier in the week but started to retreat as the market once again became concerned about efforts to reform the housing-finance system.

Those concerns were heightened on Wednesday, when senators Bob Corker and Mark Warner said in a letter to the Federal Housing Finance Agency that neither Fannie nor Freddie should be allowed to rebuild their capital buffers.

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