Morning Commentary: Preferred stocks mixed; primary stays inactive; Cowen, Seritage soften

By Cristal Cody

Tupelo, Miss., Jan. 4 – Preferred stocks opened Thursday’s trading session with a mixed tone.

The Wells Fargo Hybrid and Preferred Securities index was down 6 basis points over the morning, while the U.S. iShares Preferred Stock ETF rose 5 bps.

Preferreds have been mostly mixed over the last two sessions of the new year. The preferred stock primary market has remained quiet at the start of 2018.

Looking at new issue trading, Cowen Inc.’s 7.35% senior notes due Dec. 15, 2027 (Nasdaq: COWNZ) are softer but remain better than issuance. The notes were down 3 cents, or 0.14%, to $25.36 in early trading.

The New York-based financial services firm sold $120 million of the $25-par notes on Dec. 5.

Seritage Growth Properties’ 7% series A cumulative redeemable perpetual preferred stock (NYSE: SRGPrA) that priced on Dec. 7 traded 6 cents, or 0.25%, weaker at $24.40.

The real estate investment trust formed by Hoffman Estates, Ill.-based Sears Holdings sold $70 million, or 2.8 million shares, of the $25-par preferreds in the Dec. 7 offering.

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