Midday Commentary: General Growth Properties plans new cumulative issue; Selective Insurance quiet

By Stephanie N. Rotondo

Phoenix, Feb. 6 - A trader said the secondary preferred stock market was "pretty neutral" during early Wednesday trading.

"There's not really an up or a down bias to it right now," he said.

The primary market was shuffling around a new proposed issue from General Growth Properties Inc. The Chicago-based real estate investment trust said it was planning an offering of series A cumulative redeemable preferreds, with price talk around 6.5%.

"They pretty much boxed everybody out; there's no selling group," a trader said, seeing a $24.85 bid for paper in the midday gray market.

Meanwhile, Selective Insurance Group Inc.'s newly priced $175 million issue of 5.875% $25-par senior notes due 2043 "got quiet," according to a market source. The issue was active ahead of pricing on Tuesday, he said, where it was at $24.60 bid. Come Wednesday morning, the market widened to $24.63 bid, $24.75 offered.

"I haven't seen all that much going on in it," he said.

And, Zions Bancorporation's $171.8 million of 6.3% series G fixed-to-floating rate noncumulative perpetual preferreds - a deal that priced at auction on Jan. 31 - was continuing to do well.

"Those always hold up well," a trader said of the name, quoting the paper at $25.35 bid, $25.47 offered.

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