Morning Commentary: Entergy Texas to tap market; Allstate declines; New Residential up

By James McCandless

San Antonio, Sept. 3 – The preferred space began a new week in positive territory with the Wells Fargo Hybrid & Preferred Securities Financial index up by 0.22%.

Lifting the lid on primary activity, Entergy Texas, Inc. said it plans to price $35 million of $25-par series A cumulative preferred stock with a dividend of 5.5%.

Morgan Stanley & Co. LLC is the bookrunner.

The preferreds are redeemable on or after Oct. 15, 2024 at par. Prior to that, they are redeemable within 120 days after a ratings event at $25.50.

Leading volume in the secondary, Allstate Corp.’s 5.1% series H fixed-rate non-cumulative perpetual preferred stock was declining.

The preferreds (NYSE: ALLPrH) were down 11 cents to $26.15 on volume of about 109,000 shares.

Sector peer Aspen Insurance Holdings Ltd.’s 5.625% non-cumulative perpetual preference shares began the session with a slight gain.

The preferreds (NYSE: AHLPrE) were up 5 cents to $25.93 with about 46,000 shares trading.

Meanwhile, real estate investment trust New Residential Investment Corp.’s 7.125% series B fixed-to-floating rate cumulative redeemable preferreds were also positive early.

The preferreds (NYSE: NRZPrB) were adding 9 cents to $25.17 on volume of about 89,000 shares.

Global Net Lease, Inc., another REIT, saw its 7.25% series A cumulative redeemable preferred stock improve as the morning started.

The preferreds (NYSE: GNLPrA) were shooting up 16 cents to $25.72 with about 50,000 shares trading.

Elsewhere, in finance, JPMorgan Chase & Co.’s 6.1% series AA non-cumulative preferreds followed the market upward.

The preferreds (NYSE: JPMPrG) were improving by 6 cents to $25.92 on volume of about 48,000 shares.

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