Preferreds give up early gains as liquidity lightens ahead of holiday; American Realty up

By Stephanie N. Rotondo

Phoenix, Dec. 23 – The preferred stock market was modestly higher Tuesday but came in by the end of the trading session.

The early strength was attributed to a raging equity market, as the Dow Jones industrial average topped 18,000 for the first time.

The gains in the common equity market were spurred by a revised third-quarter gross domestic product number, which was increased to 5% from 3.9% reported last month.

On that news, “the long bond was getting smacked,” a trader said.

The Wells Fargo Hybrid and Preferred Securities index closed down 8 basis points, or 2 cents on average for $25-par preferreds. The index was up 2 bps at mid-morning.

Still, liquidity remained weak ahead of the holidays.

Associated Banc-Corp.’s 8% series B perpetual preferreds were assigned a new trading symbol on Tuesday, moving to “ASBPB” from “ASWPB” on the New York Stock Exchange.

The paper was trading at $27.45 early in the session but closed 3 cents higher at $27.48.

Meanwhile, American Realty Capital Properties Inc.’s 6.7% series F cumulative preferreds (Nasdaq: ARCPP) continued to regain ground following last week’s rout.

The paper ended the day at $21.57, up 26 cents. The shares were trading at $21.41 early in the day, up 11 cents.

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