Preferreds firm as Scotland stays with U.K.; JPMorgan prices; Gabelli assigned temporary symbol

By Stephanie N. Rotondo

Phoenix, Sept. 19 – Preferred stocks were moving higher Friday “now that the Scottish scare is gone,” a trader said.

Scotland held a vote on its independence from England on Thursday. The country rejected the plan, choosing to stay part of the United Kingdom.

The Wells Fargo Hybrid and Preferred Securities Index ended the day up 27 basis points.

“Most of that was in the first half hour of trading,” one market source said of the session’s gains.

JPMorgan Chase & Co. priced $1.6 billion of 6.1% 1,000-par fixed-to-floating rate series X noncumulative perpetual preferred stock late Thursday.

Toward the end of Friday’s session, a trader quoted the new issue at 100.125 bid, 100.325 offered.

In early Friday trading, the notes were seen at 100.325.

A market source said he believed the issue had freed to trade.

The $1,000-par preferreds become callable on Oct. 1, 2024. On that date, the notes also begin to float at Libor plus 333 basis points.

JPMorgan Securities LLC ran the books.

Meanwhile, Gabelli Healthcare & WellnessRX Trust’s recently priced $35 million issue of 5.875% series B cumulative perpetual preferreds received a temporary trading symbol on Friday, according to one market source.

The issue came to market on Wednesday. The temporary symbol is “GBQXP.”

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.