Cherry Hill Mortgage preferreds slide after offering; Allstate leads secondary market

By James McCandless

San Antonio, April 9 – The preferred market started the week active as news-driven names dominated again.

Cherry Hill Mortgage Investment Corp.’s preferreds dropped after the issuer registered an at-the-market $35 million offering of its 8.2% series A preferreds last week.

Allstate Corp. led the secondary market again with its recent $500 million issue of $25-par perpetual preferred series G shares.

AT&T Corp.’s preferreds edged up as the company works through a high-profile lawsuit against the Department of Justice.

Cherry Hill slides

A few days after Cherry Hill registered an at-the-market offering to sell up to $35 million more of its 8.2% series A cumulative redeemable preferred stock, the securities lost some of their gains made at the end of the last week, a trader confirmed.

The preferreds were originally priced at $55 million in August 2017.

The series A preferreds lost 12 cents after gaining 17 cents last Thursday and Friday.

Allstate trades up

Allstate’s recently priced upsized $500 million of $25-par perpetual preferred series G shares led in the secondary market again, traders confirmed.

The 5.625% preferreds traded up 6 cents to close at $25.23.

AT&T climbs

AT&T’s preferreds rose again as the company works its way through an anti-trust trial against the Department of Justice over its attempted merger with Time Warner. The company also received a positive bump after initiating an IPO for its South American business.

Traders saw the series B preferreds end the day up 4 cents at $25.27.

Indices mixed

The Wells Fargo Hybrid & Preferred Securities Financial index ended down 0.16% after being down 0.09% in morning trading.

The iShares US Preferred Stock ETF closed up 4 cents to end at $37.24.

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