Morning Commentary: Preferred stocks improve in early trading

By Stephanie N. Rotondo

Seattle, March 21 – The preferred stock market was muted in early Monday trading as investors ready for a shortened holiday week.

While overall liquidity was toward the lighter side, the space continued to be strong, with the Wells Fargo Hybrid and Preferred Securities index moving up 10 basis points at mid-morning. Recently deals also continued to be more active than not.

Huntington Bancshares Inc.’s $350 million of 6.25% series D noncumulative perpetual preferreds – a deal priced March 14 – were seen at $25.15 bid, $25.25 offered in early trading.

A trader said the deal had not yet listed on the Nasdaq Global Select Market – the ticker is expected to be “HBANO” – but he noted that the issue was slated to settle Monday, so listing should come “in the next couple of days.”

Meanwhile, Entergy New Orleans Inc.’s $110 million of 5.5% $25-par first mortgage bonds due 2066 were quoted wide at $25.55 bid, $25.77 offered.

That issue came Tuesday.

KKR & Co. LP’s 6.75% series A noncumulative perpetual preferred units were also getting lifted, as a trader saw the issue being offered at par.

The $300 million issue came March 10. On Thursday, the company said its greenshoe had been fully exercised, increasing total issuance by $45 million to $345 million.

As for the current week’s calendar, a trader was not expecting it to be gangbusters.

“No one has heard of any deals yet,” he said.

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