Preferred market loses ground by day’s end; AmTrust’s new notes steady; JPMorgan to list

By Stephanie N. Rotondo

Phoenix, June 12 – A preferred stock trader said the secondary market was “up marginally with the bond market rally” early Friday, though things went south by the end of the day.

A market source said “on an index basis” – referring to the Wells Fargo Hybrid and Preferred Securities index – that the market was up “roughly 2 basis points” for most of the day but that it ended up closing off 2 bps.

In terms of volume, the source deemed the day “pathetic.”

“Volume was probably the lowest of the week,” he said, adding that among listed and paying securities, there wasn’t a single issue that traded above 200,000 shares.

In new issues, a trader said AmTrust Financial Services Inc.’s $150 million of 7.25% $25-par junior subordinated notes due 2055 – a deal priced Thursday – would free to trade on Monday.

In early Friday trading, he saw the notes bid for at $24.60, which was unchanged from the previous day.

Morgan Stanley & Co. LLC, UBS Securities LLC and Keefe Bruyette & Woods Inc. are running the books.

Among other recent deals, JPMorgan Chase & Co.’s 6.1% series AA noncumulative preferreds are slated to begin trading on the New York Stock Exchange on Monday, according to a market source.

The ticker symbol will be “JPMPG.” The issue priced May 29.

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