Montpelier breaks par; Ally As rally, Bs steady; Genworth hybrids gain despite poor numbers

By Stephanie N. Rotondo

Portland, Ore., May 4 - A trader said it was a "pretty good" day for preferred stocks Wednesday.

The midweek session saw Montpelier Re Holdings Ltd.'s new 8.875% perpetual noncumulative preferreds break to trade, and the deal quickly moved past par.

A trader quoted the preferreds at $25.125 bid, $25.25 offered, compared with $24.90 in the gray market on Tuesday.

The Bermuda-based reinsurance company brought the upsized $75 million offering on Tuesday at par of $25.00. As previously reported, price talk was in the 9% area, and a trader opined that it would come in the "high-8s."

On Wednesday, Standard & Poor's gave the new issue a BB+ rating.

Also in the new issue realm, Kayne Anderson MLP Investment Co. priced a $100 million issue of 4.95% series D mandatory redeemable preferreds.

Meanwhile, after losing ground in the previous session on the back of "bad" earnings, Ally Financial Inc.'s series A preferreds bounced back up. Its series B preferreds, however, held steady.

Like Ally, Genworth Financial Inc. released first-quarter results late Tuesday, and the numbers were not good. But come Wednesday, a trader was surprised to see the firm's 6.15% hybrid notes due 2066 close up at 78.125.

"I guess you could say the bad news was already priced in," the trader said.

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