JPMorgan, Freddie Mac preferreds dip; Treasury rally, Greece news helps steady preferreds

By Christine Van Dusen

Atlanta, Feb. 20 – Investors on Friday were interested in issues from JPMorgan Chase & Co., Freddie Mac and Fannie Mae as an early and small rally in U.S. Treasuries – plus news that Greece would get an extension on its bailout – helped to steady the preferred stock market.

JPMorgan Chase’s $1.38 billion of 6.125% series Y noncumulative preferreds – slated to list on the New York Stock Exchange on Monday as “JPMPF” – ticked down on Friday morning, a trader said.

The stock was seen Friday at about $24.90, down 2 cents from Thursday’s $24.92, he said.

“They’re hanging in there,” he said, noting the paper was “marginally steadier today. They probably were trading as low as $24.85 on Thursday as bonds were getting whacked on Wednesday and Thursday, but with the tick up in Treasuries it’s quiet, a bit.”

The deal priced Feb. 5 with $1.2 billion shares sold. A $180 million greenshoe was exercised Feb. 9.

Freddie Mac, which reported disappointing fourth-quarter earnings on Thursday, also saw its preferreds dip on Friday morning. The mortgage company’s 8.375% fixed-to-floating rate noncumulative perpetual preferreds (OTCBB: FMCKJ) were spotted Friday morning at $4.43, down 2 cents from the previous day’s close. The notes closed at $4.45 on Friday afternoon.

Freddie Mac’s net income for the fourth quarter missed estimates at $227 million, versus $8.6 billion in the pervious year, as a result of losses from investments.

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