Preferreds finish week slightly positive on Yellen comments; Cedar Realty, Stellus list

By Stephanie N. Rotondo

Seattle, Aug. 25 – The preferred stock market started Friday’s session mixed but managed to end marginally positive as Federal Reserve chairman Janet Yellen defended financial rules put in place after the 2009 crisis.

The Wells Fargo Hybrid and Preferred Securities index firmed 5 basis points. The U.S. iShares Preferred Stock ETF ended up 1 bp, though it was down 3 bps at mid-morning.

In a speech at an annual central bank research conference, Yellen said regulations such as the Volcker Rule helped to strengthen the economy.

And while Yellen conceded that some changes to said reforms may be called for, those changes should be only minor alterations.

As for preferred dealings, there continued to be little going on. Traders continued to speculate that the recent muted nature of the market would stick around until after Labor Day.

There were, however, two new listings for the day, as Cedar Realty Trust Inc.’s $75 million of 6.5% series C cumulative redeemable preferred stock and Stellus Capital Investment Corp.’s $42.5 million of 5.75% $25-par notes due 2022 were both admitted to the New York Stock Exchange.

The tickers are “CDRPrC” and “SCA,” respectively.

Cedar’s preferreds were trading off a 7 cents to $24.55 post-listing. Stellus’ notes were meantime up a nickel at $25.07.

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