Morning Commentary: Preferred stock trading limited as holiday nears; U.S. Cellular lists on NYSE

By Stephanie N. Rotondo

Seattle, Nov. 24 – Liquidity continued to dwindle in the preferred stock market on Tuesday ahead of the Thanksgiving holiday in the United States.

“There’s not a lot happening,” a trader said.

And while overall action was not huge, there had already been some gyrations in the market by mid-morning.

The Wells Fargo Hybrid and Preferred Securities index was up 1 basis point to 2 bps at mid-morning. Earlier in the session, the index had been off as much as 8 bps.

Investors remained focused on recently priced deals.

United States Cellular Corp.’s $300 million of 7.25% $25-par senior unsecured notes due Dec. 1, 2064 began trading on the New York Stock Exchange on Tuesday under the symbol “UZC.”

The issue was quoted at $24.93 bid, $24.96 offered.

The deal priced Nov. 16 via BofA Merrill Lynch, Morgan Stanley & Co. LLC, RBC Capital Markets, UBS Securities LLC and Wells Fargo Securities LLC.

Meanwhile, Endurance Specialty Holdings Ltd.’s $200 million of 6.35% series C noncumulative preferreds – a deal priced Nov. 17 – were seen at $24.92 bid, $25.05 offered.

Rounding out the latest new issues, Maiden Holdings Ltd.’s $150 million of 7.125% series C noncumulative preference shares – priced Nov. 18 – were pegged at $24.90 bid, $24.95 offered.

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