Preferreds rise despite summer doldrums; primary silent; Wells Fargo deal to hit NYSE

By Stephanie N. Rotondo

Phoenix, July 23 – The summer doldrums were in full effect Wednesday as a preferred stock trader lamented a lack of real activity.

“Things are just bouncing around a little bit,” he said. “There’s no real news driving preferreds or fixed income at all.”

The silence from the primary market was deafening.

“Everybody’s waiting,” a trader said of deal flow. “Now would be a good time to do it.”

As for the secondary market, it was on an upward climb all day, ending the session near its highs, based on the Wells Fargo Hybrid and Preferred Securities index.

The index finished the day up 17 basis points. It was up 9 bps at mid-morning.

Wells’ new deal to list

Wells Fargo & Co.’s $800 million of 6% series T class A noncumulative perpetual preferreds will begin trading on the New York Stock Exchange on Thursday, a market source reported.

The ticker symbol is “WFCPT.” The original $700 million deal came July 14, with a $100 million over-allotment option being exercised on July 17.

The preferreds closed at $24.90, up a penny from the previous close but unchanged from opening levels.

Early in the session, a trader quoted the issue at $24.85 bid, $24.87 offered.

Wells Fargo is a San Francisco-based bank.

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