Morning Commentary: Preferreds mostly better; Wells Fargo edges up; Kimco’s new preferreds dip

By Cristal Cody

Tupelo, Miss., Dec. 15 – Preferred stocks opened on Friday mostly stronger, while the primary market stayed quiet.

The Wells Fargo Hybrid and Preferred Securities index climbed 21 basis points.

The U.S. iShares Preferred Stock ETF jumped higher by 34 bps over the morning.

Wells Fargo & Co.’s 8% series J non-cumulative perpetual class A preferred shares (NYSE: WFCPrJ) were up 1 cent to $25.58 in mid-morning trading.

The preferred stock has been active in trading over the past month since it is not expected to be called on Friday, its first optional call date, according to a market source.

In new issue trading, Kimco Realty Corp.’s 5.25% class M cumulative redeemable preferred shares were 3 cents weaker at $24.66 early Friday. The preferred shares are trading over the counter under the temporary symbol “KMCCP.”

Kimco, a New Hyde Park, N.Y.-based real estate investment trust, sold $230 million of the $25-par class M cumulative redeemable preferred shares (Baa2/BBB-/BBB-) on Monday.

The company plans to list the preferreds on the New York Stock Exchange.

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