Preferreds gyrate with oil, equities; W.R. Berkley issue not yet free; eBay notes steady

By Stephanie N. Rotondo

Seattle, Feb. 24 – The preferred stock market finished a touch firmer on the day after starting out Wednesday with a weaker tone.

A trader said there was not necessarily any “rhyme or reason to it.”

“There is just a strong disconnect,” the trader commented.

Still, with oil prices initially on the decline – they ended firm for the day on new data that showed U.S. demand for gas was up year over year – that seemed to be playing at least a small role in the day’s movements.

The Wells Fargo Hybrid and Preferred Securities index ended up 10 basis points. The index was down 41 bps at mid-morning.

The early weakness weighed on recently priced deals, such as W.R. Berkley Corp.’s $100 million of 5.9% $25-par subordinated debentures due 2056.

A trader saw the issue around $24.60 in early trading, adding that the paper had not yet freed to trade.

Another trader said the paper had “inched up a hair” by the bell, seeing a $24.60 bid, $24.62 offered market.

“It’s probably the manager,” the trader said.

The deal still had not freed by the afternoon, the trader added.

eBay Inc.’s $750 million offering of 6% $25-par notes due Feb. 1, 2056 were pegged at $24.78 bid, $24.82 offered.

Another source said the notes were trading “right around” $24.80.

That issue came Monday and freed to trade on Tuesday.

© 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.