Preferreds gain with broader markets; Wells Fargo, American Homes to list; Capital One up

By Stephanie N. Rotondo

Seattle, April 24 – Preferred stocks opened the new trading week in mixed fashion but eventually finished firm, following along with the broader markets.

The Wells Fargo Hybrid and Preferred Securities index closed up 6 basis points, after being off 2 bps at mid-morning. The U.S. iShares Preferred Stock ETF was up 10 bps.

The ETF is linked to the S&P U.S. Preferred Stock index, which rebalanced after Friday’s close.

Meanwhile, Wells Fargo & Co.’s $600 million of 5.625% series Y class A noncumulative preferreds were pegged at $25.07 bid, $25.10 offered early in the day and closed at $25.07. That was a loss of 3 cents on the day.

A market source said the paper is expected to hit the New York Stock Exchange on Tuesday under the ticker symbol “WFCPrY.”

Also slated to list this week are American Homes 4 Rent’s $150 million of 5.875% series F cumulative redeemable preferreds from a deal that priced April 19.

The issue is scheduled to be admitted to the NYSE on Wednesday under the symbol “AMHPrF.”

Ahead of the listing, the paper was trading at $24.70, down 2 cents.

In the secondary, Capital One Financial Corp.’s 5.2% series G noncumulative preferreds (NYSE: COFPrG) were gaining ground ahead of the company’s earnings release on Tuesday.

The preferreds closed at $23.76, up 6 cents.

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