Midday Commentary: Kayne Anderson, Citigroup deals hit the pipeline, could signal more supply

By Stephanie N. Rotondo

Phoenix, Sept. 9 - The preferred stock market saw signs of the primary space coming back to life on Monday.

Kayne Anderson MLP Investment Co. announced plans to sell series G mandatorily redeemable preferreds early in the session. Though a trader said he had yet to hear any official price talk, he was seeing a $24.60 gray market bid for the $25-par paper.

Meanwhile, Citigroup Inc. announced the Federal Deposit Insurance Corp. was reselling $2.42 billion of debt securities the agency had obtained from the bank in 2009. The issue will be marketed in two tranches, one that comes due in 2025 and one that matures in 2043.

A trader said the emergence of the deals could signal that the new issue calendar was getting ready to heat up again.

"The secondary has settled in and people are more willing to test the primary market," he said.

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