Preferreds lose ground on jobs data, Syria attack; GSEs lower; Global Indemnity to list

By Stephanie N. Rotondo

Seattle, April 7 – The preferred stock market was weaker in Friday trading as a new U.S. jobs number came in lower than expected.

A U.S. airstrike in Syria was also playing a role in market sentiment, according to a market source.

The Wells Fargo Hybrid and Preferred Securities index declined 14 basis points. The U.S. iShares Preferred Stock ETF dropped 13 bps.

“Treasuries probably drove that, as Treasuries were off 13 ticks,” one market source said. “So we did better than them. Plus, the market had been up a lot earlier this week as the preferred ETFs were flush with cash.”

In March, nonfarm payrolls rose by 98,000, which was lower than the 180,000 addition expected by the market.

It was also well below February’s revised gains of 219,000 jobs.

But news of a U.S. missile strike late Thursday was overshadowing a lot of things amid concerns that the action could lead to larger tensions.

The strike was in response to reports that the Syrian government had unleashed chemical weapons on its people.

In secondary trading, GSE preferreds topped the list of actively traded securities.

Fannie Mae’s 8.25% series S fixed-to-floating rate noncumulative preferreds (OTCBB: FNMAS) fell a dime, or 1.74%, to $5.65. Freddie Mac’s 8.375% fixed-to-floating rate noncumulative preferreds (OTCBB: FMCKJ) meantime waned 13 cents, or 2.39%, to $5.32.

Southern Co.’s 6.25% $25-par series 2015A junior subordinated notes due 2075 (NYSE: SOJA) were also on the active side, though a source speculated that it was a sale that crossed through one broker.

The notes improved 8 cents to $26.65.

Among recently priced deals, a trader said that Global Indemnity Ltd.’s $130 million of 7.875% $25-par notes due 2047 had “finally” been assigned a trading symbol, with the issue slated to list on the Nasdaq Global Select Market on Monday.

The ticker symbol will be “GBLIL.”

In early Friday trading, the notes were pegged in a $24.80 to $24.90 context.

The deal priced March 16.

As for TICC Capital Corp.’s $57.5 million of 6.5% $25-par notes due 2024 – a deal priced late Tuesday – the notes were seen at $24.75.

That was down from $25.15 at Thursday’s close.

The deal came upsized from $50 million and in line with price talk.

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