Preferreds mixed as holiday limits liquidity; Gabelli Multimedia prices new issue

By Stephanie N. Rotondo

Seattle, Sept. 21 – The preferred stock market was about flat in Thursday trading, as Rosh Hashana kept activity subdued.

“It was not a busy day, volume-wise,” a market source said.

The Wells Fargo Hybrid and Preferred Securities index closed up 2 basis points, though it was up 10 bps at mid-morning. It closed down 6 bps on Wednesday.

The U.S. iShares Preferred Stock ETF was meantime down 3 bps, after closing down 5 bps the day before.

Wednesday’s weakness came on the heels of the latest policy announcement from the Federal Reserve’s Federal Open Market Committee. The results of that meeting were largely as expected, as the committee opted to hold interest rates steady.

The FOMC also said that it would start winding down its $4.5 trillion balance sheet beginning in October.

Despite the day’s limited activity, a new issue entered the marketplace.

The Gabelli Multimedia Trust Inc. said it had sold $50 million of 5.125% series E cumulative preferred stock via BofA Merrill Lynch and UBS Securities LLC.

G.research LLC is also participating in the offering.

Among the week’s other new issues, Gladstone Capital Corp.’s $45 million of 6% series 2024 term preferred stock – a deal priced late Tuesday – was seen trading at $24.75, down a nickel from the day before.

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