Morning Commentary: Preferred stocks subdued ahead of Fed announcement; Wells Fargo lists

By Stephanie N. Rotondo

Phoenix, Sept. 16 – The preferred stock market continued to be on the muted side early Wednesday as “people are still focused on tomorrow’s Fed non-announcement, probably,” a trader said.

The trader was referring to the Federal Reserve two-day policy meeting that began Wednesday and would conclude Thursday – with a possible interest rate hike.

The trader noted a recent Jefferies report in which the investment group likened the “will they or won’t they?” drama to Y2K – that is, a much-hyped situation that ultimately turns into a non-event. Jefferies’ Sean Darby opined on CNBC earlier in the week that the central bank would look to raise rates in December instead of this month, given the recent volatility in the markets.

The Wells Fargo Hybrid and Preferred Securities index was down 2 basis points at mid-morning.

Wells Fargo & Co.’s $900 million of 6% series V class A noncumulative preferreds began trading on the New York Stock Exchange on Wednesday, as was expected.

The ticker symbol is “WFCPV.” The deal came Sept. 8.

A trader quoted the issue at $24.96 bid, $24.97 offered.

Among other recent deals, AmTrust Financial Services Inc.’s $125 million of 7.5% $25-par subordinated notes due 2055 were seen at $24.63 bid, while Qwest Corp.’s $400 million of 6.625% $25-par senior notes due 2055 were pegged at $24.60 bid.

AmTrust came Sept. 9, and Qwest priced on Thursday.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.