Midday Commentary: Primary market quiets down after busy week; Texas Capital frees to trade

By Stephanie N. Rotondo

Phoenix, March 22 - A preferred stock trader said that "it appears that overall trading is pretty light" as of midday on Friday.

Additionally, there were "no new issues and no new talk of new issues for next week," he said.

However, he opined that deals should be coming relatively soon from banks such as Bank of America Corp. and JPMorgan Chase & Co.

From Thursday business, Texas Capital Bancshares Inc.'s new $150 million of 6.5% series A noncumulative perpetual preferreds freed to trade on Friday.

A trader pegged the issue at $24.80 at midday.

However, Glimcher Realty Trust's $90 million of 6.875% series I cumulative redeemable preferreds - another deal that came Thursday - was not faring so well.

"Nobody cares," a trader said, seeing a less-30-cent bid for paper.

The Hanover Insurance Group Inc.'s $175 million of 6.35% $25-par subordinated debentures due 2053 - a deal that priced Wednesday - continued to outperform in the primary. A trader saw the notes trading well above par at $25.15.

Of new financial issues, Citigroup Inc.'s $500 million of 5.8% series C noncumulative perpetual preferreds were trading around $24.90, while Wells Fargo & Co.'s $575 million of 5.25% series P class A noncumulative perpetual preferreds were at $24.95.

The Citigroup deal came on Tuesday. Wells Fargo priced on March 15.

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