Preferred stocks mixed, then higher; Navios Maritime climbs, then dips; Freddie Mac up

By Christine Van Dusen and Cristal Cody

Atlanta, Nov. 16 – Preferred stocks were mixed on Wednesday morning, then rebounded, as investor sentiment got a bit of a boost from the possibility of tax cuts and other market-friendly policies during a Donald Trump presidency.

“Everything is moving north,” a trader said. “We had a tremendous sell-off through Monday and it’s rebounded the last two days.”

Navios Maritime Holdings Inc.’s preferreds, for one, “jumped about 50% in the last three days,” the source said.

Navios Maritime Holdings’ 8.75% series G cumulative redeemable perpetual preferreds climbed $1.82, or 21.8%, to $10.17 in midday trading. But at day’s end they were seen at $9.19.

Housing-related preferred stocks were mixed in early trading on Wednesday, then climbed into the close.

Freddie Mac’s 8.375% fixed-to-floating rate noncumulative preferreds (OTCBB: FMCKJ) were up 1 cent, or 0.2%, to $5.15. At day’s end they moved to $5.37.

Fannie Mae’s 8.25% series S fixed-to-floating rate noncumulative preferreds (OTCBB: FNMAS) rose 5 cents, or 0.91%, to $5.55 in early trading. Heading into the close, the notes were seen at $5.65.

Fannie Mae’s 7.625% series R noncumulative preferreds (OTCBB: FNMAJ) were down 8 cents, or 1.64%, at $4.80 as the session got underway. On Wednesday afternoon the securities rebounded to $5.12.

Meanwhile, issuers were on the sidelines. Market sources say deal flow is unlikely to pick up before next month.

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