Midday Commentary: Prudential notes getting ready to free up; AIG calls notes, paper softens

By Stephanie N. Rotondo

Phoenix, March 8 - A preferred stock trader said there was "no word of any new issues" on Friday.

However, Prudential Financial Inc.'s $650 million of 5.7% $25-par junior subordinated notes due 2053 were gearing up to free at 1 p.m. ET, he said.

The issue priced late Thursday, coming upsized from $250 million.

The trader said the last trade was at $24.87, leaving the market $24.85 bid, $24.90 offered.

In the secondary market, American International Group Inc. announced late Thursday that it was calling all $1.1 billion of its 7.7% $25-par series A-5 junior subordinated notes due 2047 (NYSE: AVF) on March 18.

"That's a good sign that they are getting stronger," a trader commented. The New York-based financial services firm was hit hard in the financial downturn and took billions of taxpayer dollars in order to stay afloat.

But the notes were on the weaker side in Friday trading. At midday, the issue was off 46 cents, or 1.77%, at $25.46.

© 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.