Morning Commentary: Preferreds look to start week firm; Invesco lists on NYSE; Kimco declines

By Stephanie N. Rotondo

Seattle, Aug. 21 – The preferred stock market was edging upward early Monday, beating out the straight equity markets, which had opened the day on the weaker side.

The Wells Fargo Hybrid and Preferred Securities index was up 1 basis point at mid-morning. The U.S. iShares Preferred Stock ETF was up 8 bps.

By comparison, S&P 500 index was off 0.08% to 2,423.37 in early dealings.

But while the preferred stock market was attempting to tick higher, the issues seen as the most active – or topical – at mid-morning were not following the pack.

Invesco Mortgage Capital Inc.’s $250 million of 7.5% fixed-to-floating rate series C cumulative redeemable preferred stock – a deal priced on Aug. 9 – entered the established secondary on Monday, listing on the New York Stock Exchange under the ticker symbol “IVRPrC.”

Paper was trading at $24.95 at mid-morning, down a dime.

Kimco Realty Corp.’s $225 million of 5.125% class L cumulative redeemable preferred stock (NYSE: KIMPrL) were also lower, fading 4 cents to $24.81.

That issue listed on the NYSE on Thursday after pricing on Aug. 7.

Away from recent issues, Citigroup Inc.’s 7.875% fixed-to-floating rate trust preferred securities (NYSE: CPrN) were trading actively in early dealings. But like Invesco and Kimco, the preferreds were losing ground, falling 7 cents to $27.26.

There was no fresh news to cause the activity or the downward move.

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