Midday Commentary: Preferred market slows after election; City National, Everbank falter

By Stephanie N. Rotondo

Phoenix, Nov. 7 - It was "quiet across the board" in the preferred stock market post-Election Day, according to a trader.

"There's no one around," he noted, pointing to the Nor'Easter storm that is heading toward New York and surrounding areas.

The trader also remarked that "everything is selling off," though he was not sure if it was due to negative news out of Greece, the election results or simply because there had been a "strong run up" going into the election.

However, he did say that the re-election of president Barack Obama could have market players nervous about how dividends will be dealt with going forward.

Of the day's goings-on, City National Corp.'s new $175 million issue of 5.5% series C noncumulative perpetual preferreds - a deal that priced late Monday - had yet to free up, according to a trader.

He quoted the issue wide at $24 bid, $24.50 offered.

Everbank Financial Corp.'s $150 million of 6.75% series A noncumulative perpetual preferreds - another deal that came Monday - was also wide, at $24.40 bid, $24.85 offered.

Meanwhile, Apollo Investment Corp.'s $150 million of 6.625% $25-par senior notes due 2042 are expected to list on the New York Stock Exchange on Thursday.

The expected symbol is "AIB." That deal priced Oct. 1.

And, a trader said he was hearing rumors of a new deal from Wells Fargo & Co., though he had not seen any details.

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