Midday Commentary: Fannie, Freddie see early rebound; Atlas, Public Storage holding steady

By Stephanie N. Rotondo

Phoenix, March 14 - Fannie Mae and Freddie Mac paper continued to dominate early Friday trading, a trader reported.

As was the case early Thursday, the agencies' preferreds were rebounding some after getting hammered most of the week.

However, the preferreds closed Thursday's session weaker again.

Freddie's 8.375% fixed-to-floating rate noncumulative perpetual preferreds (OTCBB: FMCKJ) were up 17 cents, or 1.6%, to $10.80. Fannie's 8.25% series S fixed-to-floating rate noncumulative preferreds (OTCBB: FNMAS) were up 15 cents, or 1.46%, at $10.45.

Away from the GSE preferreds, a trader said that action was limited, noting that there was "nothing new in the pipeline."

From the latest week's deals, Atlas Pipeline Partners LP's $110 million of class E cumulative redeemable perpetual preferred stock units were pegged at $24.55 bid, $24.60 offered, and Public Storage Inc.'s $225 million of 6.375% series Y cumulative preferreds were pegged at $24.82 bid, $24.85 offered.

"They've been there all week it seems like," a trader said.

Atlas priced on Wednesday, and Public Storage came on Monday.

The Wells Fargo Hybrid and Preferred Securities index was trading off 9 basis points as of mid-morning.

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