Midday Commentary: Preferreds losing ground; Arbor Realty, Kemper add deals to primary calendar

By Stephanie N. Rotondo

Phoenix, Feb. 20 - The preferred stock market was slipping Thursday as new manufacturing data improved more than expected and unemployment numbers fell.

A trader opined that the market has had "such a run up," that investors "could just be taking a breather."

The Wells Fargo Hybrid and Preferred Securities index was down 15 basis points as of midday.

The primary saw two new deals added to the calendar, though they were small issues.

Arbor Realty Trust Inc. said it was planning to sell series C cumulative redeemable preferred stock. Price talk is 8.375% to 8.5%.

A trader said he had not seen any gray market for the non-rated deal.

The company is expected to sell at least $20 million of the shares via Deutsche Bank Securities Inc., JMP Securities, Ladenburg Thalmann & Co. Inc. and MLV & Co. LLC.

Meanwhile, Kemper Corp. announced an offering of at least $100 million $25-par subordinated debentures due 2054. Price talk is 7.375% to 7.5%.

A trader said he saw gray-market bids for the notes at $24.75, "maybe higher," as of midday.

J.P. Morgan Securities LLC and Wells Fargo Securities LLC are leading that deal.

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