Preferred stocks rebound after losing week; New York Community Bancorp brings upsized deal

By Stephanie N. Rotondo

Seattle, March 10 – After trending lower all week, preferred stocks were “bouncing a little bit, but not much,” a trader said Friday.

He said the course reversal came in response to a monthly U.S. jobs number that was “in line” with expectations.

The Wells Fargo Hybrid and Preferred Securities index rose 16 basis points. The U.S. iShares Preferred Stock index was up 34 bps.

Nonfarm payrolls added 235,000 jobs in February, according to the latest report from the Bureau of Labor Statistics.

Analysts had projected an addition of 190,000 jobs.

New York Community Bancorp Inc. brought an upsized $500 million of 6.375% series A fixed-to-floating rate noncumulative preferreds on Friday.

It was initially was reported that price talk was in the 6.375% area and that $400 million of the preferreds were to be sold.

A market source placed the issue at $24.90 bid.

Goldman Sachs & Co., Credit Suisse Securities (USA) LLC and BofA Merrill Lynch are the active joint bookrunners. Passive joint bookrunners include Citigroup Global Markets Inc. and Sandler O’Neill + Partners LP.

Meanwhile, Spark Energy Inc.’s $35 million of 8.75% series A fixed-to-floating rate cumulative redeemable preferreds – a deal priced Wednesday – freed to trade early in the session, according to a trader.

At the bell, a source said the issue closed at $24.45, though he added that the level was “probably too low,” given that the volume weighted average price was $24.57.

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