Morning Commentary: Citizens on tap; American Finance lower; Energy Transfer active

By James McCandless

San Antonio, Oct. 21 – Top traders started a new week in the preferred market mixed as the Wells Fargo Hybrid & Preferred Securities Financial index was up 0.10%.

The primary space saw Citizens Financial Group, Inc. announce plans to price a $250 million offering of $25-par series E fixed-rate non-cumulative perpetual preferred stock.

The preferreds are talked with a 5.25% area yield.

Morgan Stanley & Co. LLC, BofA Securities, Inc., J.P. Morgan Securities LLC, UBS Securities LLC, Wells Fargo Securities, LLC and Citizens Capital Markets, Inc. are the joint bookrunners.

The preferreds are redeemable on or after Jan. 6, 2025 at par. Prior to that, they are redeemable within 90 days after a regulatory capital treatment event at par.

Leading secondary trading volume early Monday, real estate investment trust American Finance Trust, Inc.’s 7.5% series A cumulative perpetual preferred stock was trending lower.

The preferreds (Nasdaq: AFINP) were down 1 cent to $25.37 on volume of about 82,000 shares.

Sector peer New York Mortgage Trust, Inc.’s 7.875% series E fixed-to-floating rate cumulative redeemable preferreds were relatively active but rigid as the session began.

The preferreds (Nasdaq: NYMYM) were unchanged at $25.95 with about 36,000 shares trading.

Meanwhile, oil and gas name Energy Transfer Operating, LP’s 7.6% series E fixed-to-floating rate cumulative redeemable perpetual preferred units were also unmoved Monday morning.

The preferreds (NYSE: ETPPrE) were level at $25.84 on volume of about 50,000 shares.

Mortgage name Ellington Financial Inc.’s new 6.75% series A fixed-to-floating rate cumulative redeemable preferred stock opened with a decline.

The preferreds, trading under the temporary symbol “EGLLP,” were losing 9 cents to $25.10 with about 43,000 shares trading.

In the finance space, Capital One Financial Corp.’s 5% series I fixed-rate non-cumulative perpetual preferreds made a push upward.

The preferreds (NYSE: CPrN) were higher by 4 cents to $27.62 on volume of about 42,000 shares.

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