Morning Commentary: Preferreds quiet amid New York snowstorm; Fannie firm; AXIS holds

By Stephanie N. Rotondo

Seattle, Feb. 9 – Inclement weather on the East Coast was not helping the preferred stock market get any more active, a trader said on Thursday.

“A lot of people aren’t in,” the trader said of the snowstorm that hit New York. The storm was expected to dump at least a foot of snow in the Tri-State area.

Given the limited liquidity, preferreds were mixed in early dealings.

The Wells Fargo Hybrid and Preferred Securities index was up 4 basis points at mid-morning, though the U.S. iShares Preferred Stock index was down a like amount.

Fannie Mae’s 8.25% series S fixed-to-floating rate noncumulative preferreds (OTCBB: FNMAS) were starting the day off as the most actively traded issue. The paper continued to post gains, rising 30 cents, or 2.94%, in early dealings to $10.50.

Meanwhile, AXIS Capital Holdings Ltd.’s 5.5% series E noncumulative preferreds (NYSE: AXSPrE) were also on the busier side, relatively speaking.

The preferreds were steady at $22.95.

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