Preferreds remain firm; Atlas Pipeline units drift lower; Fannie, Freddie push higher

By Stephanie N. Rotondo

Phoenix, Jan. 28 – There was more strength seen in the preferred stock market Wednesday despite growing concerns about a strengthening dollar.

The Wells Fargo Hybrid and Preferred Securities index ended up 21 basis points, spiking in the last hours of trading. The index was up 9 bps at mid-morning.

“People are worried now with the dollar gaining strength that it will effect larger cap companies with foreign growth,” a trader said. However, he said it was possible that low oil prices could combat that.

Meanwhile, the positive tone of the market was certainly benefitting recently priced deals.

Bank of America Corp.’s $1 billion of 6.5% series Y noncumulative preferreds hit the New York Stock Exchange on Wednesday, as was expected.

The issue closed at $25.17, up from opening levels of $25.04.

Over 2.88 million shares were exchanged, making the preferreds again the most actively traded issue among paying securities.

The deal priced Jan. 20. The ticker symbol is “BACPY.”

Atlas Pipeline Partners LP’s 8.25% class E cumulative redeemable perpetual preferred units (NYSE: APLPE) were weakening, just one day after the company said it was redeeming all 5.06 million outstanding units. The units ended at $25.25, down 27 cents, or 1.06%.

Meanwhile, Fannie Mae and Freddie Mac preferreds were busy and better Wednesday as a U.S. Court of Federal Claims judge said investors could proceed with a lawsuit against the government.

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