Preferreds tick higher to end week; Allstate issue frees up; Goldman, Morgan Stanley busy

By Stephanie N. Rotondo

Phoenix, June 6 – On Friday, preferred stocks continued to erase losses incurred earlier in the week.

The Wells Fargo Hybrid and Preferred Securities index closed up 24 basis points.

“We’ve had a little bit of a bounce back in the secondary, but nothing crazy,” a trader said.

As for recent deals, Allstate Corp.’s $250 million of 6.25% series F fixed-rate noncumulative perpetual preferred stock, an offering done via Incapital LLC’s Leopards program, was trading “right around par” as of mid-morning, according to the trader.

The issue freed to trade early in the day.

After the market closed, a market source said the new deal, which came Thursday, closed at par bid.

Meanwhile, Resource Capital Corp.’s $110 million of 8.625% series C fixed-to-floating-rate cumulative redeemable preferreds were quoted at $24.90 bid, $24.95 offered.

“They’re hanging right around that area,” a trader said.

Despite the firmer tone of the market, liquidity was on the lighter side away from a couple of issues.

Goldman Sachs Group, Inc.’s 5.5% series J fixed-to-floating-rate noncumulative preferred stock (NYSE: GSPJ) gained 25 cents, or 1.05%, to close at $24.13. About 1.41 million shares were exchanged.

Morgan Stanley’s 6.875% series F fixed-to-floating-rate noncumulative preferreds (NYSE: MSPF) meantime saw even more activity, as about 1.5 million shares traded. The preferreds finished the session up 17 cents at $27.35.

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