Morning Commentary: Preferreds again negative; Entergy Louisiana bonds volatile

By Abigail W. Adams

Portland, Me., Feb. 6 – Preferred were losing again early in Tuesday’s session as the broader equity markets experience a volatile trading session. The Wells Fargo Hybrid & Preferred Securities Financial index was down 4.27 basis points.

The U.S. iShares Preferred Stock ETF was down 0.48%.

The volatility extended to preferreds. Entergy Louisiana, Inc.’s first mortgage bonds 4.70% series due 2063 was up, then down, then up again in high volume trading.

The bonds were up 58 cents, or 2.49%, to $23.81 early in Tuesday’s session.

The bonds briefly fell into negative territory, but were up again a short time later, although they quickly lost their early gains. The bonds were up 19 cents, or 0.82%, to $23.42 shortly before noon.

Annaly Capital Management Inc.’s 6.95% series F cumulative redeemable preferred stock also saw heavy trading volume early in Tuesday’s session, although with less volatility. The preferreds were up 1 cent, or 0.04% to $25.04 shortly before noon.

Trading volume for the 6.95% preferreds exceeded their three-month average early in the session.

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