Ally Financial slides; Qwest $25-par notes crater; AGNC negative

By James McCandless

San Antonio, March 18 – Extending a seesawing trend, the preferred market saw another large drop on Wednesday that wiped away Tuesday’s gains.

Leading the midweek slide, Ally Financial, Inc.’s 8.125% series 2 fixed-to-floating rate trust preferred securities were pushed lower.

Elsewhere in the finance space, Citigroup Capital XIII’s 7.875% fixed-to-floating rate trust preferred securities also took a hit.

Sector peer JPMorgan Chase & Co.’s 6% series EE non-cumulative preferreds weakened at the end of the session.

In communications, Qwest Corp.’s 6.5% notes due 2056 cratered.

Meanwhile, REIT AGNC Investment Corp.’s 6.125% series F fixed-to-floating rate cumulative redeemable preferred stock saw negativity.

Ally Financial lower

Leading the midweek secondary slide, Ally Financial’s 8.125% series 2 fixed-to-floating rate trust preferred securities were pushed lower.

The preferreds (NYSE: ALLYPrA) were down $4.23 to close at $15.67 on volume of about 1 million shares.

On Tuesday, the preferreds gained 20 cents.

Elsewhere in the finance space, Citigroup’s 7.875% fixed-to-floating rate trust preferred securities also took a hit.

The preferreds (NYSE: CPrN) were pushed lower by $2.23 to close at $22.90 with about 1 million shares trading.

On Tuesday, the preferreds rose 12 cents.

Sector peer JPMorgan’s 6% series EE non-cumulative preferreds weakened at the end of the session.

The preferreds (NYSE: JPMPrC) slid $1.25 to close at $24.41 on volume of about 1 million shares.

On Tuesday, the preferreds shot up 51 cents.

Qwest craters

In communications, Qwest’s 6.5% notes due 2056 cratered as the day came to a close.

The notes (NYSE: CTBB) declined by $6.94 to close at $12.71 with about 908,000 notes trading.

AGNC loses

Meanwhile, real estate investment trust AGNC’s 6.125% series F fixed-to-floating rate cumulative redeemable preferred stock saw requisite negativity.

The preferreds (Nasdaq: AGNCP) dived $5.45 to close at $9.90 on volume of about 856,000 shares.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index ended the day down by 15.26%, adding to the 3.39% drop from early Wednesday trading.

The iShares US Preferred Stock ETF was down $5.13 to $25.12.

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