AmTrust gets temporary symbol, trades higher; new $1,000-par bank issues trade around par

By Stephanie N. Rotondo

Phoenix, March 16 – The preferred stock market was firm in Monday trading, helping a new issue from AmTrust Financial Services Inc. gain traction.

The Wells Fargo Hybrid and Preferred Securities index closed up 8 basis points after being up 10 bps at mid-morning.

Though the space ended with a positive tone, a market source remarked that the arena “underperformed Treasuries.”

The $165 million offering of 7.5% $25-par series D noncumulative preferreds – priced Thursday and freed early Friday – were seen jumping about 20 cents in early trades to a $24.80 to $24.85 context.

The issue continued to move up throughout the session, ending 25 cents higher at $24.95.

A trader also noted that the new issue was assigned a temporary trading symbol, “AMSVP.”

Among other recent deals in the $1,000-par space, Citigroup Inc.’s $1.5 billion of 5.875% series O fixed-to-floating rate noncumulative preferreds – a deal from Friday – were trading “right around par,” according to a trader.

Another market source saw the preferreds finishing at 100.125.

Bank of America Corp.’s ’s $1.9 billion offering of 6.1% $1,000-par series AA fixed-to-floating rate noncumulative preferred stock were placed at 100.125 early in the day, going on to close with a 101 handle. Morgan Stanley & Co. Inc.’s $1.5 billion of 5.5% series J fixed-to-floating rate noncumulative preferreds also closed with in a 101 context, after trading at 100.5 early in the session.

Both BofA and Morgan Stanley came Thursday.

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