Preferreds open with firm tone; Qwest preparing to list; Wells Fargo active; AmTrust gains

By Stephanie N. Rotondo

Phoenix, Sept. 21 – Preferred stocks were gaining strength as the week got underway.

The Wells Fargo Hybrid and Preferred Securities index ended up 19 basis points. The index was up 14 bps at mid-morning.

The gains came after a surge in volatility the previous week, due in large part to the Federal Reserve’s decision not to increase short-term interest rates.

But while the preferred market was strong, a trader said the space remained quiet.

As for recent deals, Qwest Corp.’s $400 million of 6.625% $25-par senior notes due 2055 – an issue priced Sept. 10 – was given a symbol, a trader said.

The symbol is “CTZ.” However, the trader said the notes had not yet listed on the New York Stock Exchange.

He quoted the issue at $24.75 bid, $24.80 offered.

Another source said the issue ended at $24.87, up a dime on the day.

Wells Fargo & Co.’s $900 million of 6% series V class A noncumulative preferreds (NYSE: WFCPV) meantime remained the dominant security as it continued to rise. The preferreds finished the day at $25.08, up a penny.

And, AmTrust Financial Services Inc.’s $125 million of 7.5% $25-par subordinated notes due 2022 (NYSE: AFST) – a deal from Sept. 9 – ended 4 cents higher at $24.94.

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