Preferreds end in the positive after volatile session; recent deals mixed; Citigroup higher

By Abigail W. Adams

Portland, Me., Feb. 12 – The preferreds market was off to a volatile start early Monday with the Wells Fargo Hybrid & Preferred Securities Financial index seesawing between positive and negative territory.

However, both the Wells Fargo Hybrid & Preferred Securities Financial index and the U.S. iShares Preferred Stock ETF closed Monday with gains after a nearly two-week streak of losses.

The performance of recently priced deals now listed for trading on exchanges was mixed on Monday with some also seesawing between positive and negative territory.

Recent deals, such as Jernigan Capital, Inc.’s 7% series B cumulative redeemable preferred stock, made gains while others, such as UMH Properties Inc.’s 6.375% series D cumulative redeemable preferred stock, lost ground.

However, each recent deal is trading below its issue price.

Citigroup Capital’s XIII 7.875% fixed-to-floating rate trust preferred securities were in focus during Monday’s session and made gains in high-volume trading.

The seesaw

The Wells Fargo Hybrid & Preferred Securities Financial index seesawed between positive and negative territory on Monday before ending the day with gains.

The index was up about 0.01% early Monday but slipped down 0.09% shortly before 12 p.m. ET. The index rebounded in the afternoon and closed Monday up 0.05%.

The U.S. iShares Preferred Stock ETF was up 0.10% early Monday and continued to climb to close the session up 0.27%.

Recent deals

The performance of several recently priced deals now trading on exchanges was mixed during Monday’s session. Several of the recent deals also experienced a volatile session, beginning Monday with losses but ending with gains.

Great Elm Capital Corp.’s 6.75% notes due 2025, which trade under the ticker “GECCM,” were down 8 cents, or 0.33%, to $24.27 early Monday. The notes rebounded and ended Monday at $24.49, an increase of 14 cents, or 0.57%.

UMH Properties’ 6.375% series D cumulative redeemable preferred stock, which trades on the NYSE under the ticker “UMHPrD,” was down 10 cents, or 0.41%, to $24.00 early in the session.

While the preferred stock was able to trim its losses it still ended down at $23.95, a decrease of 6 cents, or 0.25%.

Teekay Offshore Partners LP’s 8.875% perpetual series E fixed-to-floating rate cumulative redeemable preference units, which trade under the ticker “TOOPrE,” were up 15 cents, or 0.61%, to $24.65 early Monday.

While unable to maintain its gains, the preference units still ended up at $24.69, an increase of 9 cents, or 0.37%.

GasLog Partners LP’s 8.2% series B fixed-to-floating rate preference units, which trade under the ticker “GLOPPrB,” were down 5 cents, or 0.20%, to $24.80 early Monday. The preference units rebounded to end Monday at $24.94, an increase of 9 cents, or 0.36%.

Jernigan Capital’s recently priced 7% series B cumulative redeemable preferred stock, which trade under the ticker “JCAPPrB,” ended Monday’s session at $23.40, an increase of 19 cents, or 0.82%.

Citigroup in focus

Citigroup Capital’s 7.875% fixed-to-floating rate trust preferred securities made gains in high volume trading on Monday. The preferred securities closed Monday at $27.13, an increase of 4 cents, or 0.15%.

The securities saw nearly 5 times their trading average on Monday with about 525,500 shares trading hands compared to the three-month average of about 99,000.

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