Preferreds inch higher as volume lightens ahead of holiday; American Realty firms

By Stephanie N. Rotondo

Phoenix, Dec. 22 – Preferred stocks were higher in Monday trading, but a market source noted that the space was already preparing for the Christmas holiday.

“There’s not much going on,” he said. “I’m already getting messages from people, ‘hey, taking off for Christmas.’ So we’re probably done for the year.”

Another source said the day saw “light volume.”

The Wells Fargo Hybrid and Preferred Securities index closed up 11 basis points.

American Realty Capital Properties Inc.’s 6.7% series F cumulative redeemable preferreds (Nasdaq: ARCPP) were firming up after spending most of the previous week on the decline.

The preferreds ended the day at $21.30, up 15 cents from Friday levels. The preferreds were up 24 cents, or 1.13%, in early trading at $21.39.

In a lawsuit filed on Thursday, Lisa P. McAlister – formerly the chief accounting officer and one of two executives that lost their jobs in the wake of an accounting irregularity that surfaced in October – alleged that it was Nicholas Schorsch, co-founder and former chief executive officer, who ordered her and Brian Block, former chief financial officer, to alter second-quarter results in order to cover up an error made in the first quarter.

McAlister claims she had concerns about following through with the orders but that those concerns were ignored.

The company first announced the issue in late October and said that McAlister and Block had resigned.

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