Preferreds lose ground in wake of Fed minutes, jobs data; TICC Capital quiet post-pricing

By Stephanie N. Rotondo

Seattle, April 5 – The preferred stock market gave up some of its recent gains on Wednesday – despite a new jobs number that came in better than expected.

The Wells Fargo Hybrid and Preferred Securities index declined 23 basis points. The U.S. iShares Preferred Stock ETF fell 36 bps, though it was up 21 bps at mid-morning.

The ADP National Employment Report came out early in the day, showing that 263,000 jobs were added to private payrolls in March.

That was better than the 187,000 add expected by analysts.

The ADP results come ahead of the more complete nonfarm payrolls report, which is slated to be released on Friday.

The weakness in the market came after the Federal Reserve released the minutes from its latest policy meeting. The minutes showed that Fed officials were looking at reducing its bond holdings this year. Additionally, officials appeared to disagree on how to let inflation rise – that is, faster or slower – as well as how to deal with potential economic impacts related to the Trump administration’s stimulus ideas.

Late Tuesday, TICC Capital Corp. said it had sold $57.5 million of 6.5% $25-par notes due 2024.

The deal came upsized from $50 million and in line with price talk.

In early Wednesday dealings, a trader said he saw a small piece offered at $24.70.

Ladenburg Thalmann & Co. Inc., BB&T Capital Markets, Compass Point and William Blair & Co. ran the books.

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