AXIS Capital recoups early losses; Hersha, People’s United weaken; Ashford comes in

By Stephanie N. Rotondo

Seattle, Nov. 3 – The preferred stock market was again under pressure in Thursday trading.

“The jobs number was uneventful,” a trader said, as jobless claims increased to highs not seen since August.

The trader also noted that Treasuries were slipping on concerns about the United Kingdom’s Brexit plan.

The Wells Fargo Hybrid and Preferred Securities index closed down 55 basis points. The index was off 30 bps at mid-morning.

AXIS Capital Holdings Ltd.’s $550 million of 5.5% series E noncumulative preferreds – a deal priced Monday and trading under a temporary ticker, “AXHHF” – were once again trading actively, though also initially softer in line with the broader market. However, the paper managed to gain ground by the end of business.

The preferreds closed at $24.80, up 3 cents. Earlier in the day, a trader placed the issue at $24.80 bid, $24.87 offered.

Hersha Hospitality Trust’s $100 million of 6.5% series E cumulative redeemable preferreds – a deal priced Tuesday – did follow the day’s trend, closing off 2 cents at $24.75.

The deal was assigned a temporary ticker on Wednesday, “HRSHP.”

From last week’s business, People’s United Financial Inc.’s 5.625% fixed-to-floating rate noncumulative preferreds were pegged at $25.95 bid, $26.00 offered in early trading.

Another source saw the issue at $26.05, off 26 cents.

At the bell, the preferreds were seen at $26.10, down 21 cents.

The $250 million deal priced Oct. 24. The preferreds are trading under a temporary symbol, “PPLUP.”

Among more established issues, a trader remarked that Fannie Mae had reported earnings and planned to send a $3 billion dividend payment to the Treasury Department.

The GSE saw its profit increase nearly threefold year over year, despite a decline in revenue.

However, there were little goings-on in the name, or in Freddie Mac for that matter.

Freddie Mac, for its part, posted a larger profit as well on Wednesday.

Ashford soft pre-earnings

Ashford Hospitality Trust Inc.’s 7.375% series G cumulative preferreds (NYSE: AHTPG) were trading somewhat actively, and lower, ahead of the company’s earnings release on Thursday.

The preferreds fell 26 cents, or 1.11%, to $23.24.

For the quarter, the Dallas-based real estate investment trust reported a net loss of $35.1 million, or 37 cents per share.

It was expected that the company would post earnings per share of 35 cents on revenue of $369.92 million.

Ashford will hold a conference call to discuss the results on Friday.

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