Preferreds modestly firmer; GasLog prepares to list; Capitala over par; Fannie Mae dips

By Stephanie N. Rotondo

Seattle, May 16 – The preferred stock market ended Tuesday’s session with a slightly positive tone, even as the broader markets finished the day mixed.

However, the day’s gains were hard won, especially given the constrained liquidity.

The Wells Fargo Hybrid and Preferred Securities index was positive throughout the day, ending up 8 basis points. But the U.S. iShares Preferred Stock ETF turned upward only in the final hour of trading, finishing 5 bps better.

The ETF was down 14 bps at mid-morning.

A trader commented that investors seemed to be laying low as they tried to figure out what the Trump Administration planned to do about everything from taxes to banking regulations.

“Whenever there is nothing concrete out here, everybody jumps to conclusions,” the trader said.

As for last week’s new issues, GasLog Partners LP’s 8.625% series A fixed-to-floating rate cumulative preference units are slated to list on the New York Stock Market on Wednesday.

The ticker symbol will be “GLOPPrA.” The paper has been trading under a temporary symbol, “GSFGF.”

The units closed at $25.40, up 11 cents.

Meanwhile, Capitala Finance Corp.’s 6% $25-par notes due 2022 – a $70 million deal priced May 10 – were seen at par bid, $25.10 offered.

Among already-listed issues, Fannie Mae’s variable rate series O noncumulative preferreds (OTCBB: FNMFN) topped the charts for the day. But the GSE-linked paper bucked the day’s firmer trend, losing 40 cents, or 3.27%, to close at $11.85.

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