Preferreds rally in late trading; Wintrust Financial frees to trade; Kimco Realty paper active

By Stephanie N. Rotondo

Phoenix, June 23 – A preferred stock market trader said there was “not a whole lot of movement” in the secondary market on Tuesday.

A second market source said the market was “pretty flat” after trading down “pretty much all day.”

At its worst, he said, the market was off 3 to 4 basis points, but it eventually closed slightly higher.

The Wells Fargo Hybrid and Preferred Securities index ended 1 bp higher but was off 4 bps at mid-morning.

As the preferred space was just modestly moved, the broader markets were gaining ground as investors hoped for a deal in Greece. A fresh round of economic data, including a rise in new home sales, was also playing a role.

In recent deals, Wintrust Financial Corp.’s $125 million of 6.5% series D fixed-to-floating-rate noncumulative perpetual preferreds, a deal that priced Monday, freed to trade, according to a trader.

He pegged the issue at $24.70 early in the session, and a source echoed that level at day’s end.

Incapital LLC and U.S. Bancorp ran the books.

Meanwhile, Valley National Bancorp’s $115 million of 6.25% series A fixed-to-floating-rate noncumulative preferreds were “hanging” around “$24.95-ish,” a trader said.

At the bell, the paper was seen at $24.90, down 15 cents.

The deal priced June 16 via Sandler O’Neill + Partners LP, Keefe Bruyette & Woods Inc. and RBC Capital Markets.

Looking ahead, a trader said he had heard “no talk on the horizon” for any other new issues this week.

Kimco trades busily

Kimco Realty Corp.’s 6% class I cumulative redeemable preferred stock (NYSE: KIMPI) dominated trading among listed and paying securities on Tuesday, with over 600,000 shares being exchanged.

The preferreds ended 20 cents lower at par.

But while that issue took a hit, the rest of the New Hyde Park, N.Y.-based real estate investment trust’s preferreds were trading higher – albeit on significantly less volume.

For instance, the 5.5% class J cumulative redeemable preferreds (NYSE: KIMPJ) improved 11 cents to $24.58, but less than 22,000 shares were exchanged on the day.

There was no fresh news out on the company, though it did present at the Jefferies 2015 Global Consumer Conference in Nantucket on Tuesday.

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