Preferreds continue to weaken, following trend of equities; Costamare deal lists; Zions rises

By Stephanie N. Rotondo

Phoenix, Aug. 7 - The midweek session saw continued muted trading in the preferred stock world, a trader said.

"Everything is down slightly, as it has been all week," he said.

The Wells Fargo Hybrid and Preferred Securities index, one benchmark indicator of how the market is trading, was off 27 basis points.

Allstate Corp.'s recently priced $800 million issue of 5.75% $1,000-par series B fixed-to-floating-rate subordinated debentures due 2053 was still "hanging right there in the zone" of 99.5 to par, the trader said. With no other new issues keeping the market busy, investors were focusing on the non-listed deal.

Meanwhile, Costamare Inc.'s $50 million of 7.625% series B cumulative redeemable perpetual preferreds - a deal that priced last week - began trading on the New York Stock Exchange on Wednesday.

The ticker symbol is "CMREPB." Paper was trading at $24.70 at midday, down 3 cents from the day before.

The shares gyrated all day, eventually trading up 17 cents to $24.90.

Also, Zions Bancorporation's 9.5% series C noncumulative preferreds (NYSE: ZBPC) were up 3 cents, trading at $25.55. The bank recently called the $590 million issue and will price at auction on Wednesday an offering of up to $195.15 million of new $1,000-par series J fixed-to-floating-rate noncumulative preferreds.

The details of the new issue had yet to be released as of the market's close.

Proceeds from the sale will be used to help fund the redemption.

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