American Finance closes under par; Brighthouse preferreds lower; Ally Financial down

By James McCandless

San Antonio, March 22 – The preferred space closed the last day of the week on a negative note.

American Finance Trust, Inc.’s new $30 million 7.5% series A cumulative redeemable perpetual preferred stock closed the day under par.

Insurance name Brighthouse Financial, Inc.’s 6.6% series A non-cumulative preferred stock led the market lower.

In finance, Ally Financial Inc.’s 8.125% series 2 fixed-to-floating rate trust preferred securities declined.

Sector peer Citigroup Capital XIII’s 7.875% fixed-to-floating rate trust preferred securities also slipped.

Morgan Stanley’s 5.85% series K fixed-to-floating rate non-cumulative preferreds rose.

American Finance below par

On its first trading day, American Finance’s new $30 million 7.5% series A cumulative redeemable perpetual preferred stock ended the session below par.

The preferreds, trading under the temporary symbol “AFINP,” were seen closing at $24.46 on volume of about 616,000 shares.

The deal was announced on Thursday.

Brighthouse off

Meanwhile, insurance provider Brighthouse’s new 6.6% series A non-cumulative preferred stock led an overall market decline.

The preferreds, trading under the temporary symbol “BHFLL,” dropped 5 cents to close at $25.25 with about 609,000 shares trading.

On Thursday, the preferreds gained 13 cents.

Ally lower

Elsewhere, in the finance space, Ally Financial’s 8.125% series 2 fixed-to-floating rate trust preferred securities spent the day declining.

The preferreds (NYSE: ALLYPrA) were down 13 cents to close at $26.06 on volume of about 270,000 shares.

Sector peer Citigroup’s 7.875% fixed-to-floating rate trust preferred securities were also negative.

The preferreds (NYSE: CPrN) lost 3 cents to close at $26.87 with about 244,000 shares trading.

Morgan Stanley’s 5.85% series K fixed-to-floating rate non-cumulative preferreds rose, going against Friday’s trend.

The preferreds (NYSE: MSPrK) gained 12 cents to close at $26.05 on volume of about 222,000 shares.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index was down 0.02% at the end of the week, softening from a 0.15% loss in early trading on Friday.

The iShares US Preferred Stock ETF was down 12 cents to $36.39.

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