Morning Commentary: KeyCorp’s new deal trades actively, softens with market; DTE lists on NYSE

By Stephanie N. Rotondo

Seattle, Dec. 8 – KeyCorp’s $500 million of 6.125% series E fixed-to-floating rate noncumulative preferreds were dominating early trading on Thursday.

A trader saw the issue at $25.25 bid, $25.32 offered at mid-morning, which was down a touch from the previous close.

However, there was a high print with a $27-handle in early dealings.

The deal came Monday, upsized from $250 million and tight to the 6.25% area price talk. The issue freed from the syndicate on Tuesday and is trading under a temporary symbol, “KYYPP.”

DTE Energy Co.’s $280 million of 6% $25-par 2016 series F junior subordinated debentures due 2076 meantime listed on the New York Stock Exchange, as was expected.

The ticker symbol is “DTY.”

A trader said the paper was ‘moving on up,” placing the debentures in a $24.51 to $24.65 context.

Looking ahead, a trader said that there would be “maybe two [new] deals for the rest of the year and that’s about it.”

As for the secondary, the market was losing some of the ground gained in the last two sessions.

The Wells Fargo Hybrid and Preferred Securities index was off 23 basis points at mid-morning.

Given the overall weakness, Fannie Mae and Freddie Mac preferreds remained on the active side but mixed.

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