Preferreds weaken in pre-holiday trade; volume a ‘little light’; Kimco, AT&T stable

By Cristal Cody

Tupelo, Miss., Dec. 20 – Preferred stocks opened mixed on Wednesday and ended the session mostly weaker.

The Wells Fargo Hybrid and Preferred Securities index dropped 34 basis points.

The U.S. iShares Preferred Stock ETF softened 8 bps.

“The market index closed off 34 bps,” a source said. “Volume was a little light but not so bad for the week before Christmas.”

Kimco Realty Corp.’s new 5.25% class M cumulative redeemable preferred shares (Baa2/BBB-/BBB-) were flat on the day at $24.62 in over-the-counter trading under the temporary symbol “KMCCP.”

The preferreds fell 12 cents, or 0.49%, on Tuesday.

The shares are expected to start trading on the New York Stock Exchange within 30 days of issuance under the permanent ticker symbol “KIMPrM.”

Kimco, a New Hyde Park, N.Y.-based real estate investment trust, priced $230 million of the $25-par class M cumulative redeemable preferred shares on Dec. 11.

Elsewhere, AT&T Inc.’s 5.35% global notes due Nov. 1, 2066 (NYSE: TBB) closed flat at $26.30 after softening a dime on Tuesday.

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

AT&T was expected to close on its $85.4 billion cash and stock acquisition of Time Warner Inc. at the end of the year. The Justice Department has filed a federal lawsuit to block the deal, and a trial date is set for March 19.

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