Preferred market slow after election; decline in profit pressures ING; Public Storage off

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.

Another market source said that preferred stocks were down about a nickel on average, adding that "volume was on the light side, but not brutally light."

ING Groep NV was on the losing side during the session, following a disappointing earnings report and word of more job cuts.

Public Storage was also weaker ahead of the company's earnings release on Thursday.

ING hurt by earnings

The Netherlands-based ING Groep reported a dismal third quarter on Wednesday, which resulted in losses for the company's preferreds.

The 6.375% perpetual hybrid capital securities (NYSE: ISF) fell 24 cents to $24.50.

For the quarter, ING posted a profit of €609 million, down from €1.69 billion the year before. The 64% drop in profit was a result of a poorly performing insurance unit.

As the financial services firm looks to shore up its banking and insurance businesses, ING also said it was cutting 1,000 jobs at its commercial bank. Another 1,350 jobs would be lost at its European insurance unit.

Public Storage weakens

Public Storage's preferreds were on the decline ahead of the company's earnings release on Thursday.

The 6.875% series O cumulative preferreds (NYSE: PSAPO) lost 7 cents to end at $27.80.

Analysts are expecting the Glendale, Calif.-based real estate investment trust to post a third-quarter profit of $1.68 per share, which compares to $1.39 per share the year before.

However, it is also expected that revenues will be lower. Analysts are predicting revenues of $435 million, which would be a more than 2% decline from the same quarter of 2011.

Public Storage has reported lower profits and revenues for the previous two quarters.

New issue tidbits

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 $24.00 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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