Preferred stocks end mixed; Annaly active but steady; GSE paper weakens; Ashford lists

By Stephanie N. Rotondo

Seattle, Aug. 29 – Liquidity was slightly better in the preferred stock market on Tuesday, though it was still rather subdued.

Amid the limited volume, the market finished the session with a mixed tone.

The Wells Fargo Hybrid and Preferred Securities index ended up 2 basis points. The U.S. iShares Preferred Stock ETF was down 9 bps.

Annaly Capital Management Inc.’s 6.95% series F fixed-to-floating rate cumulative redeemable preferreds (NYSE: NLYPrF) continued to be on the active side, though the issue ended the day steady at $25.04.

Among other somewhat active issues, the tone was largely negative.

For instance, Fannie Mae’s 8.25% series S fixed-to-floating rate noncumulative preferreds (OTCBB: FNMAS) dipped a nickel to $6.35. Sector peer Freddie Mac saw its 8.375% fixed-to-floating rate noncumulative preferreds (OTCBB: FMCKJ) drop a similar amount to $6.07.

Qwest Corp.’s 6.75% $25-par notes due 2057 were also weaker, dropping 7 cents to close at $25.59.

Elsewhere, Ashford Hospitality Trust Inc.’s $85 million of 7.5% series H cumulative redeemable preferreds – a deal priced Aug. 16 – listed on the New York Stock Exchange on Tuesday.

The ticker symbol is “AHTPrH.”

The preferreds were at $24.75 at the bell, down a nickel.

Price talk on the issue was 7.5% to 7.625%. The deal was increased from $50 million

UBS Securities LLC and Morgan Stanley & Co. LLC were the joint bookrunners.

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