Midday Commentary: Preferreds weaken in early trading; Seaspan to reopen 7.95% preferreds

By Stephanie N. Rotondo

Phoenix, Nov. 5 - A preferred stock trader said that "everything is slightly off with the long bond" as of midday on Tuesday.

The Wells Fargo Hybrid and Preferred Securities index was trading off 15 basis points before noon ET.

The trader said that Seaspan Corp. announced plans to reopen its 7.95% series D cumulative redeemable preferreds early in the session.

The company originally sold $67.5 million of the preferreds on Dec. 6. A $10,125,000 greenshoe was then exercised on Dec. 14, bringing total issuance up to $77,625,000.

The paper (NYSE: SSWPD) was trading down 77 cents, or 3.04%, around midday at $24.60.

Aside from Seaspan, the trader said there was "no talk of any new deals this week," which he said was "surprising," given chatter from last week about a big deal - likely from a bank - that never materialized.

In other recent deals, City National Corp.'s $100 million of 6.75% series D fixed-to-floating rate noncumulative preferred stock continued to perform well after pricing on Thursday.

A trader saw the issue at $25.25 in early morning trading.

The trader added that the deal had gotten a reporting symbol, "CYNLL."

Citigroup Inc.'s $1.3 billion issue of 6.875% series K fixed-to-floating rate noncumulative preferreds - a deal that came Oct. 24 - was meantime seen "hanging right around par."

The issue has not yet listed, but the trader speculated that "it seems like it should be listing this week."

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