Preferreds improve in thin volume; primary market quiet; New York Mortgage, Annaly gain

By Cristal Cody

Tupelo, Miss., Oct. 11 – Preferred stocks ended Wednesday mostly better in light volume as market participants digested the minutes released from the Federal Reserve’s September policy meeting.

“It was mostly a green day with the Wells Fargo [Hybrid and Preferred Securities] index being up 19 basis points,” a source said. “Volume was on the light side.”

The U.S. iShares Preferred Stock ETF was up modestly by 3 bps.

The new issue market is expected to be thin over the next few weeks with the start of earnings season.

“For the remainder of the week, we’re not expecting a lot,” according to an informed source. “We’re not hearing a lot for the following week, either.”

In the secondary market, New York Mortgage Trust Inc.’s new 8% series D fixed-to-floating rate cumulative redeemable preferreds gained 4 cents to end at $24.90 on strong volume.

New York Mortgage Trust sold $125 million of the preferreds on Thursday at the tight end of the 8% to 8.125% price talk. The deal was freed to trade on Friday, and the issue has been assigned the temporary ticker, “NYMMP.”

Elsewhere in the secondary market, Annaly Capital Management Inc.’s 6.95% series F cumulative redeemable preferreds (NYSE: NLYPrF) were among the most active. The preferreds closed up 14 cents at $25.94.

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