New York Mortgage brings new issue; Bank of America firms post-earnings; Goldman numbers ahead

By Stephanie N. Rotondo

Phoenix, April 15 – Tax Day was strong for the preferred stock market, as the Wells Fargo Hybrid and Preferred Securities index jumped 20 basis points.

The index was up 8 bps early Wednesday morning.

The new issue pipeline saw a deal from New York Mortgage Trust Inc. get priced. The real estate investment trust sold $90 million of 7.875% series C cumulative redeemable perpetual preferreds.

A trader said initial price talk was 7.875% to 8% and at least $50 million shares were expected to be sold.

“There’s not much going on in it,” the trader noted. “I think they will pretty much hand out stock to anyone who wants it.

“I have a feeling it trades soft for awhile,” he added.

The trader pegged the issue at $24.60 bid in the early gray market.

As for the company’s 7.75% series B cumulative redeemable preferreds (Nasdaq: NYMTP), those were initially trading off 2 cents at $24.85. However, by the end of the day, the paper had improved a penny to $24.88.

Meanwhile, Bank of America Corp. announced its first-quarter results ahead of the market’s open on Wednesday. Profit beat expectations as legal expenses shrank.

The bank’s preferreds were moving up.

Goldman Sachs Group Inc. and Citigroup Inc. are the next big banks scheduled to bring earnings. Ahead of the reports, Goldman’s 6.375% series K fixed-to-floating rate noncumulative preferreds (NYSE: GSPK) were up a nickel at $27.10.

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