Morning Commentary: Market subdued as new deals eyed; Legg Mason, Seaspan begin trading on NYSE

By Stephanie N. Rotondo

Seattle, Aug. 16 – A preferred stock trader said Tuesday’s trading session was starting out with a muted tone.

“It’s pretty quiet,” he said. “Think it’s going to be a quiet afternoon.”

No new issues were announced as of mid-morning, and the market was still waiting for deals from Sotherly Hotels Inc. and E*Trade Financial Corp. to price.

A trader said that E*Trade’s planned offering of up to $400 million of $1,000-par series A fixed-to-floating rate noncumulative preferreds were at par bid in the gray market.

As for recent deals, several were hitting the New York Stock Exchange.

Legg Mason Global Asset Management’s $500 million of 5.45% $25-par junior subordinated notes due Sept. 15, 2056 was one such issue, listing under “LMHB.”

The paper was trading at $24.90 at mid-morning, down from opening levels of $24.95.

The issue priced Aug. 3 via Morgan Stanley & Co. LLC, BofA Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC.

Seaspan Corp.’s $225 million of 7.875% series H cumulative redeemable perpetual preferred stock also listed, under the ticker “SSWPH.”

A trader said that issue was trading “around $24.75.”

BofA Merrill Lynch, Morgan Stanley, JPMorgan, RBC Capital Markets LLC and Citigroup were the joint bookrunners on the offering, which came Aug. 4.

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