Preferreds rebound as Fed holds rates steady; Maiden, Validus list on NYSE; KKR active, strong

By Stephanie N. Rotondo

Seattle, June 15 – The preferred stock market regained ground in midweek trading after heading lower during the first part of the week.

The Wells Fargo Hybrid and Preferred Securities Index ended Wednesday’s session up 29 basis points.

The gains came as the Federal Reserve released its latest monetary policy statement. The central bank opted to keep rates steady for the time being, citing somewhat anemic job growth as well as concerns about whether or not the United Kingdom would vote to leave the European Union next week.

Additionally, while the Fed left room for at least two rate increases this year, the number of members supporting just one more upward move increased to six from one at the last meeting.

As for preferred activity, Maiden Holdings Ltd.’s $110 million of 6.625% $25-par notes due June 14, 2046 and Validus Holdings Ltd.’s $150 million of 5.875% series A noncumulative preference stock both listed on the New York Stock Exchange on Wednesday.

Maiden’s ticker is “MHLA.” That issue came to market on June 7. Validus priced June 6 and is trading under the symbol “VRPA.”

Also in the realm of recently priced deals, KKR & Co. LP’s $155 million of 6.5% series B noncumulative perpetual preferred units were quoted at $25.05 bid, $25.08 offered by one market source.

Another source placed the units at $25.14, up 14 cents.

Trading in the units was well above activity in the rest of the secondary market, with nearly 1.15 million units being exchanged.

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