Morning Commentary: Charles Schwab, Iberia new issues firm up; Freddie, Fannie gain on numbers

By Stephanie N. Rotondo

Phoenix, Aug. 4 – The preferred stock market remained firm as Tuesday trading got underway.

The Wells Fargo Hybrid and Preferred Securities index was up 5 basis points at mid-morning.

Among recent deals, the Charles Schwab Corp.’s $600 million of 6% series C noncumulative preferreds were moving on up, with a trader quoting the issue at $25.20 bid, $25.30 offered.

That deal came July 27 via BofA Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC. The paper is slated to begin trading on the New York Stock Exchange on Wednesday.

The ticker symbol will be “SCHWPC.”

IberiaBank Corp.’s $75 million of 6.625% series B fixed-to-floating rate noncumulative preferreds were also trending higher. The preferreds were pegged at $25.02 bid, $25.10 offered early in the session.

The deal priced Wednesday via BofA Merrill Lynch and UBS Securities.

In secondary trading, Fannie Mae and Freddie Mac preferreds were “jumping up,” according to a trader, after Freddie reported “decent earnings.”

Freddie’s 8.375% fixed-to-floating rate noncumulative perpetual preferreds (OTCBB: FMCKJ) were up 23 cents, or 4.63%, at $5.20 at mid-morning. Fannie’s 8.25% series S noncumulative preferreds (OTCBB: FNMAS) were 28 cents, or 5.66%, higher at $5.23.

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