Dave in Texas mentioned the big pop in CIT Group common shares early today–well how about their 5.85% preferred – up $2.32 on 12 times regular volume. Turns out that CIT is being acquired by regional lender First Citizens (FCNCB).
I personally noticed the PennyMac FTF preferreds popping on large volume–3 and 5 times normal volume–both issues up around 3%. I had held a modest speculative position and needed this pop to unload it–collected 1 dividend and 75 cents on the pop–not really looking to hold long term. I see no news to account for the pop.
You can see these issues on the large volume spreadsheet here.
I think what we are seeing is some bargain hunters no being forced to dip a bit lower in the quality rankings to find issues under $25–of course this means many of the mortgage REITs could pop–at least those that hold agency paper. You can peruse the mortgage REITs here.