Preferreds close out week with firmer feel; AmTrust shares, Arlington notes list on NYSE

By Stephanie N. Rotondo

Phoenix, March 20 – The preferred stock market ended the week strong. The Wells Fargo Hybrid and Preferred Securities index closed 33 basis points higher on Friday.

The index had jumped 22 bps in early Friday trading.

Additionally, trading in the secondary space was “improved, but nothing dramatic,” according to a market source.

The new issue pipeline continued to be quiet, and one market source opined that despite the Federal Reserve’s latest policy revision in regards to interest rates, it could stay that way for a few more weeks.

“The primary could stay quiet now until bank earnings begin in mid-April,” he said, noting that financial institutions are now entering a “blackout period.”

While the calendar remained thin, a couple of recently priced deals were admitted to the New York Stock Exchange during the session.

AmTrust Financial Services Inc.’s $165 million of 7.5% series D noncumulative preferreds listed under the ticker symbol “AFSIPD.”

The preferreds finished the day at $25.08, up from opening levels of $25.01.

Meanwhile, Arlington Asset Investment Corp.’s $32 million of 6.75% $25-par notes due 2025 began trading under the symbol “AIC.”

That issue ended at $24.85, down from par at the beginning of the day.

The notes were pegged at $24.56 bid, par offered in early trading.

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