Midday Commentary: Preferred market quiet as weekend looms; Mississippi Power expected

By Stephanie N. Rotondo

Phoenix, Aug. 24 - The preferred stock market was "very, very quiet" Friday, according to a trader.

He noted that he had expected things to move up a bit, as the "bond market was up a little bit with everything going on in Europe." However, the market was rather flat.

Mississippi Power Co. filed a $1.6 billion shelf registration Friday that covered preferred stock, senior notes or junior subordinated notes. A trader said that "I'd bet we see a $100-par deal next week."

With the proceeds, the company could call some of its older issues, such as the 5.25% cumulative preferreds. The trader remarked that some of the older issues have "better voting rights," so the company might choose to take those out first.

Meanwhile, State Street Corp.'s $500 million of series C preferreds and JPMorgan Chase & Co.'s $1.1 billion issue of 5.5% series O noncumulative preferreds "should be listing anytime," a trader said.

State Street priced Aug. 14. JPMorgan came Aug. 20.

The trader noted that JPMorgan's first settlement date is Monday, so the issue could list at that time.

State Street was quoted at $24.95 bid, par offered at midday, while JPMorgan's paper was seen offered at $24.95.

© 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.