Midday Commentary: Maiden Holdings' new notes free to trade; Fannie, Freddie bounce back

By Stephanie N. Rotondo

Phoenix, Nov. 19 - Preferred stocks were holding in as Tuesday trading got underway.

The Wells Fargo Hybrid and Preferred Securities index was flat as of mid-morning.

A trader said Maiden Holdings North America Ltd.'s newly priced $152.5 million issue of 7.75% $25-par fixed-rate notes due 2043 had freed to trade early in the session.

He quoted the issue at $24.81 bid, $24.85 offered.

However, the trader remarked that he had not seen any markets in Fifth Third Bancorp's $750 million of 4.3% $1,000-par subordinated notes due 2024, a deal that also priced on Monday.

In the secondary, Fannie Mae and Freddie Mac paper "bounced back nicely" after selling off in the previous session.

Fannie's 8.25% series S fixed-to-floating rate noncumulative preferreds (OTCBB: FNMAS) were up 8 cents, or 1.09%, at midday at $8.34.

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