Preferreds end weak in volatile session; Associated Banc, JPMorgan soften; Aimco improves

By Stephanie N. Rotondo

Phoenix, June 5 – A preferred stock trader said the market was “rebounding” early Friday, following a “soft sell-off at the open.” However, things had taken a turn for the worse by the end of business.

The Wells Fargo Hybrid and Preferred Securities index fell 18 basis points in Friday trading. The index was down 10 bps at mid-morning after being down by a greater amount earlier in the morning.

Recent deals meantime continued to struggle to gain traction.

A trader said that Associated Banc-Corp’s $65 million of 6.125% series C noncumulative perpetual preferreds – a deal priced Monday – “bid out for awhile” at $24.25, though he wasn’t sure paper actually traded there.

Another source placed the issue at $24.50, off 15 cents from the previous close.

JPMorgan Chase & Co.’s 6.1% series AA noncumulative preferreds – a deal from May 28 – were meantime pegged at $24.65 bid, $24.70 offered early in the day.

The preferreds ended the session down 2 cents at $24.68.

That paper has been assigned a temporary trading symbol of “JPRGP.”

Apartment Investment & Management Co.’s preferreds got an upgrade from Fitch Ratings on Friday.

The news gave the company’s 6.875% series A cumulative preferreds (NYSE: AIVPA) and its 7% class Z cumulative preferreds (NYSE: AIVPZ) a boost.

The As rose 18 cents, or 1.01%, to $28.04, while the Zs improved by a nickel to close at $25.97.

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