Preferred market firms going into month-, year-end; newer issues dominating trading

By Stephanie N. Rotondo

Phoenix, Nov. 30 - The preferred stock market was gaining ground Friday "for some reason," a trader said.

"Maybe it's just month-end and people are posturing for the end of the year," he speculated.

Whatever it was that was driving the market, most recent new issues were pushing higher.

"Volume was OK in more recent names," another market source said after the bell.

Prudential Financial Inc.'s $500 million of 5.75% $25-par junior subordinated notes due Dec. 15, 2052 - a deal that priced late Tuesday - was finally trading at par or above, with a trader seeing the notes at $25.05 as of midafternoon.

"That's a big move," the trader said. Paper had been $24.75 bid, $24.85 offered on Thursday.

However, a source said the notes ended flat at par.

Meanwhile, Kimco Realty Corp.'s new $175 million of 5.625% class K cumulative redeemable perpetual preferreds freed from the syndicate, according to a trader. The issue was pegged at $24.58 bid, $24.63 offered at midday.

After the market closed, the preferreds were pegged at $24.65.

The preferreds priced Wednesday.

And, Comcast Corp.'s $250 million of 5% senior notes due 2061 were trading at $24.60 at midday, following pricing on Thursday.

A market source saw the issue closing around $24.50, but noted that a late-day trade at $28 had occurred. He deemed the trade to be a price manipulation going into month-end.

He also noted that the $24.50 price tag was off 15 cents from the day before.

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