Maiden preferreds drop after earnings; 1347 preferreds down, Huntington Bancshares up

By Abigail W. Adams

Portland, Me., Feb. 28 – The gains in the preferreds market appeared to continue on Wednesday with both the Wells Fargo Hybrid & Preferred Securities Financial index and the U.S. iShares Preferred Stock ETF indicators closing the day up.

The Wells Fargo Hybrid & Preferred Securities Financial index closed Wednesday up 0.28%. The U.S. iShares Preferred Stock ETF closed Wednesday up 0.13%.

However, trading during Wednesday’s session was mixed with the more liquid securities seeing both gains and losses, a market source said.

Maiden Holdings, Ltd.’s preference shares were among the major losers on Wednesday after the Hamilton, Bermuda-based insurance holding company reported fourth-quarter and year-end results after the market close Tuesday.

Maiden Holdings’ 6.7% series D non-cumulative preference shares closed Wednesday at $15.83, a decrease of $1.58, or 9.08%.

The company’s 7.125% series C non-cumulative preference shares traded at $17.80, a decrease of $1.38, or 7.22%.

The primary market for preferreds has been quiet for most of February. However, the two recent preferred stock offerings that did price were seen moving in opposite directions.

1347 Property Insurance Holdings Inc.’s recently priced 8% series A perpetual cumulative preferred stock were seen trading down on Wednesday while Huntington Bancshares Inc.’s recently priced 5.7% series E fixed-to-floating rate non-cumulative perpetual preferred stock was seen trading up.

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