AI Sentiment: Bullish
Reason: The article discusses a new issuance of preferred stock from HFRO and mentions several stocks and bonds traded above their call value, reflecting an expectation these will remain outstanding for a significant time. The current market trends and activities are seen as opportunities for investors.
This week, the preferred stock market saw significant activity, including the announcement of a new preferred stock from Highland Floating Rate Opportunities Fund (HFRO). The closed-end fund is set to issue another preferred stock, which is an interesting development given that the fund's existing preferred stock (HFRO-A) is not fully called. This new issuance is an intriguing move, especially considering HFRO's past performance and its current yield on cost of 5.6%.
Several preferred stocks and baby bonds were called during the week, including issues from TravelCenters of America (TANNI), Bank of America (BAC-B), and MetLife (MET-A). The call of TANNI is notable due to its large size of 8 million shares, and it highlights the trend of issuers seeking to reduce their leverage in response to the current low interest rate environment. BAC-B and MET-A, on the other hand, were expected calls given their respective call dates and yields.
Meanwhile, several preferred stocks and baby bonds were ex-dividend this week as well, including issues from AGNC Investment Corp (AGNCM), Citigroup (C-PK), and Wells Fargo (WFC-PL). These ex-dividend dates are important for investors to take note of, as they determine eligibility for the upcoming dividend payments. The ex-dividend date for AGNCM was on December 30, while C-PK and WFC-PL went ex-dividend on December 31.
Lastly, a number of preferred stocks and baby bonds traded above their call value this week, including issues from Bank of America (BAC-B), AGNC Investment Corp (AGNCM), and Citigroup (C-PK). This is a significant development, as it implies that investors are expecting these issues to remain outstanding for a significant period of time. The trading above call value for BAC-B, AGNCM, and C-PK could potentially indicate a belief that these banks and companies will not call their preferred stocks and baby bonds in the near future due to the current low interest rate environment.
In conclusion, this week's activities in the preferred stock market highlight the ongoing developments and trends in the sector. From new issuances to calls and ex-dividend dates, the market continues to evolve, offering opportunities for investors to capitalize on these changes.