Selective Insurance ends above par; Wells Fargo preferreds rise; Vornado better

By James McCandless

San Antonio, Dec. 3 – Moving through to the back half of the week, the preferred market maintained a positive trend.

At the top of the volume in the secondary, Selective Insurance Group, Inc.’s new $200 million 4.6% series B non-cumulative preferred stock finished above par.

Meanwhile, in the finance space, Wells Fargo & Co.’s 4.75% series Z non-cumulative perpetual class A preferred stock rose.

Sector peer Capital One Financial Corp.’s 4.8% series J fixed-rate non-cumulative perpetual preferred stock was under pressure.

Property owner Vornado Realty Trust’s 5.25% series N cumulative redeemable preferreds capped the afternoon slightly better.

Elsewhere, utilities name Southern California Edison Co.’s 5.375% cumulative fixed-to-floating rate trust preferred securities saw a spike.

Selective tops par

At the top of the volume in the secondary space, insurance provider Selective’s new $200 million 4.6% series B non-cumulative preferred stock finished its first trading day above par.

The preferreds, trading under the temporary symbol “SLIG,” closed at $25.80 on volume of about 764,000 shares.

The deal priced on Wednesday.

Wells Fargo rises

Meanwhile, in the finance space, Wells Fargo’s 4.75% series Z non-cumulative perpetual class A preferred stock rose.

The preferreds (NYSE: WFCPrZ) improved by 5 cents to close at $25.59 with about 443,000 shares.

On Wednesday, the preferreds shifted up 6 cents.

Sector peer Capital One’s 4.8% series J fixed-rate non-cumulative perpetual preferred stock was under some pressure.

The preferreds (NYSE: COFPrJ) were docked 3 cents to close at $25.35 on volume of about 213,000 shares.

On Wednesday, the preferreds rose 9 cents.

Vornado better

Real estate investment trust Vornado’s 5.25% series N cumulative redeemable preferreds capped the afternoon slightly better.

The preferreds (NYSE: VNOPrN) garnered 2 cents to close at $25.10 with about 246,000 shares trading.

SoCal Edison spikes

Elsewhere, utilities name Southern California Edison’s 5.375% cumulative fixed-to-floating rate trust preferred securities saw a spike late in the day.

The preferreds (NYSE: SCEPrJ) jumped 15 cents to close at $24.26 on volume of about 149,000 shares.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index ended up by 0.15% on Thursday.

The index finished Wednesday up by 0.35%, was up by 0.12% on Tuesday and finished Monday down by 0.5%.

The iShares US Preferred Stock ETF was up 10 cents to $37.80.

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