Preferreds subdued on Syria crisis, holidays; primary calendar to build in September

By Stephanie N. Rotondo

Phoenix, Aug. 29 - There "wasn't much movement" in the preferred stock market on Thursday following Wednesday's big ex-dividend day, according to a trader.

The trader noted that concerns over Syria were continuing to play a role, adding that upcoming holidays - Labor Day this weekend and Rosh Hashana the following week - were keeping many players sidelined.

Still, there seemed to be a glimmer of light, as the trader said he was hearing there was a "very large new issue corporate calendar for September."

One market source said that if that proves to be true, it will be as he expected.

As of midday, the Wells Fargo Hybrid and Preferred Securities index was trading up 18 basis points. It ended the day up 17 bps.

"Volume was light," a market source said. "Tomorrow is probably going to be even lighter," given the three-day weekend.

Brandywine slides

Brandywine Realty Trust's 6.9% series E cumulative redeemable preferreds (NYSE: BDNPE) dipped 13 cents to $24.79 in Thursday trading.

The issue was among the most active of paying securities.

The weakness in the shares came despite Fitch Ratings revising its outlook on the real estate investment trust to positive on Wednesday.

Fitch affirmed its ratings on the preferreds at BB-.

The rating agency said the outlook revision was based on the belief that the company's credit metrics will continue to improve in the next one to two years, which could lead to a boost to investment grade.

The company is based in Radnor, Pa.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.