Morning Commentary: Preferred primary mostly quiet; secondary mixed; Wells Fargo softens

By Cristal Cody

Tupelo, Miss., Dec. 1 – The preferred primary market remained quiet at the start of Friday’s session, while preferred stocks overall continued to remain mixed.

The Wells Fargo Hybrid and Preferred Securities index climbed 25 basis points.

The U.S. iShares Preferred Stock ETF was down 12 bps over the morning.

B. Riley Financial Inc. announced on Thursday it is offering up to $40 million of its 7.5% $25-par senior notes due Oct. 31, 2021 and 7.5% $25-par senior notes due May 31, 2027.

B. Riley’s 7.5% notes due 2021, which trade on Nasdaq under the symbol “RILYL,” were flat at $26.10 in early trading on Friday. The notes went out in the previous session up 6 cents at $26.10.

The company’s 2027 notes, traded on the Nasdaq Global Market under the symbol “RILYZ,” were about 8 cents better over the morning at $25.79.

The 2027 notes ended Thursday 14 cents weaker at $25.71.

In other trading, Wells Fargo & Co.’s 8% series J non-cumulative perpetual class A preferred shares (NYSE: WFCPrJ) softened 2 cents to $25.58 early Friday.

The preferred shares are not expected to be called at the first optional call date on Dec. 15, according to market sources.

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