Morning Commentary: Preferreds firm as Irma weakens; EnLink to bring new issue; TCF rises

By Stephanie N. Rotondo

Seattle, Sept. 11 – The preferred stock market was climbing higher early Monday, echoing the positive tone of the broader markets.

The Wells Fargo Hybrid and Preferred Securities index was up 21 basis points at mid-morning. The U.S. iShares Preferred Stock ETF was up 19 bps.

The gains came as Hurricane Irma was downgraded to a tropical storm. Easing concerns about a nuclear test in North Korea also helped give the markets a boost.

EnLink Midstream Partners LP announced a new issue on Monday, an offering of series C fixed-to-floating rate cumulative redeemable preferred units.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are running the deal.

The company does not plan to list the units on any exchange.

Proceeds will be used for capital expenditures and general partnership purposes.

As for the previous week’s new issues, TCF Financial Corp.’s $175 million of 5.7% series C noncumulative preferreds were on the active side, trading up a nickel to $25.10.

The deal came Thursday, via Morgan Stanley & Co. LLC and UBS Securities LLC. The issue freed to trade around midday on Friday.

The temporary ticker is “TCFFP.”

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