Goldman, Citi rise post-earnings; Goldman taps market; New York Mortgage frees to trade

By Stephanie N. Rotondo

Phoenix, April 16 – The preferred stock market failed to hold on to its recent gains on Thursday as the broader markets sold off.

The broader markets gyrated throughout the session as investors weighed recent earnings against the latest economic data. Market players were also keeping a weary eye on Greece amid renewed concerns of a debt default.

The Wells Fargo Hybrid and Preferred Securities index closed down 6 basis points. The index was up 1 bp at mid-morning.

Goldman Sachs Group Inc. and Citigroup Inc. released earnings ahead of the open. For its part, Goldman beat expectations and showed significant revenue growth.

Citigroup, however, beat estimates but saw a decline in revenue.

In addition to announcing earnings, Goldman also announced and priced $1,000-par series M fixed-to-floating rate noncumulative perpetual preferreds totaling $2 billion.

Goldman Sachs’ earnings followed the recent trend among banks – that is, they came in above expectations.

In response, the company’s preferred stock was gaining momentum.

The 6.375% series K fixed-to-floating rate noncumulative preferreds (NYSE: GSPK) ended up 2 cents at $27.12. Earlier in the session, the paper was trading off a penny.

Among recent deals, New York Mortgage Trust Inc.’s $90 million of 7.875% series C cumulative redeemable preferreds – a deal from Wednesday – freed to trade early in the session, according to a trader.

He said the issue was initially quoted at $24.60 bid, $24.67 offered but that the paper came in to $24.60 offered.

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