Morning Commentary: Preferreds soft to start week; Eagle Point selling $25-pars; Maiden listed

By Stephanie N. Rotondo

Seattle, Nov. 30 – Preferred stocks were weak going into the month-end trading session.

The Wells Fargo Hybrid and Preferred Securities index was down 14 basis points early Monday morning.

The softness comes as investors look to a week of new data, including the Federal Reserve’s release of its Beige Book, as well as a jobs report for November.

The Beige Book figures come out Wednesday, and the jobs number will be released on Friday.

Eagle Point Credit Co. Inc. announced plans to sell at least $25 million of $25-par unsecured notes due 2020 early in the day.

Price talk is around 6.625%, according to a market source.

Incapital LLC is running the books.

“I don’t think much is going on in it,” a trader said at mid-morning, adding that he had not seen any gray markets for the paper.

“Incapital isn’t often the lead, so I think it might be more of a best-efforts deal,” the trader remarked.

Pricing is expected this week.

Meanwhile, Maiden Holdings Ltd.’s $150 million of 7.125% series C noncumulative perpetual preference shares – a deal that priced Nov. 18 via Morgan Stanley & Co. LLC, BofA Merrill Lynch and Wells Fargo Securities LLC – was moving up following its listing on the New York Stock Exchange on Friday.

The ticker symbol is “MHPC.” A trader quoted the issue at $24.92 bid, $24.94 offered at mid-morning.

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