Belgium bombings result in gyrations for preferred stocks; calendar expected to ramp up

By Stephanie N. Rotondo

Seattle, March 22 – The preferred stock market was following the broader markets lower early Tuesday after a string of bombings hit Brussels, but the space had recovered by the closing bell.

The bombings – two of which occurred at the airport and another at a subway station, both during morning rush hour – were attributed to the recent arrest of Salah Abdeslam, a suspect in the massive attacks on Paris last year. The Islamic State claimed responsibility for the job.

The Wells Fargo Hybrid and Preferred Securities index ended up 10 basis points. The index was off 3 bps at mid-morning.

“Treasuries are up on that [news],” a trader said at midday. “It’s a flight to quality.”

As for the primary space, the deal flow remained nil on Tuesday, though a trader said he was “hearing there’s a busy calendar” next week.

As for recently priced deals that have not yet listed on their respective exchanges, Entergy New Orleans Inc.’s $110 million of 5.5% $25-par first mortgage bonds due 2066 “have really run up,” according to a trader, placing the issue at $25.70 bid, $25.87 offered.

At the close, the issue was seen at $25.30.

That issue priced March 15.

Huntington Bancshares Inc.’s $350 million of 6.25% series D noncumulative perpetual preferreds – a deal priced March 14 – were inching higher as well, trading in a $25.30 to $25.40 context, a trader said.

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