Morning Commentary: Preferred stocks soft at market open; Ashford Hospitality better; AT&T down

By Cristal Cody

Tupelo, Miss., Nov. 10 – Preferred stocks remained weak early Friday after ending the previous session softer.

The U.S. iShares Preferred Stock ETF shed 25 basis points over the morning.

The Wells Fargo Hybrid and Preferred Securities index dropped 17 bps.

Ashford Hospitality Trust Inc.’s new series I perpetual cumulative preferred stock that priced on Wednesday with a 7.5% dividend and freed to trade under the temporary symbol “ASHFP” on Thursday climbed in early over-the-counter trading on Friday.

The preferreds were up $1.07, or 4.36%, to $25.70.

The trust sold $135 million, or 5.4 million shares, of the preferred stock. The deal includes a greenshoe that would lift the total offering to 6.21 million shares.

The Dallas-based real estate investment trust plans to list the preferreds on the New York Stock Exchange under the ticker symbol “AHTPrI.”

In other trading, AT&T Inc.’s 5.35% $25-par global notes due Nov. 1, 2066 (NYSE: TBB) fell 4 cents, or 0.16%, to $25.29 over the morning.

The Dallas-based telecommunications company sold $1.15 billion of the notes on Oct. 25.

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