Morning Commentary: Preferreds strengthen amid limited trading; Sotherly lists on Nasdaq

By Stephanie N. Rotondo

Seattle, Aug. 30 – As August neared its end, the preferred stock market had a strong tone to it.

The Wells Fargo Hybrid and Preferred Securities index was up 13 basis points early Tuesday.

Still, traders lamented that there was not much going on.

“A lot of stuff went ex-dividend in the last few days, that’s about the only thing that’s happening,” a trader said.

August’s new issues remained in focus, as Legg Mason Global Asset Management’s $500 million of 5.45% $25-par junior subordinated notes due Sept. 15, 2056 (NYSE: LMHB) were seen up 2 cents at $25.07.

Qwest Corp.’s $977.5 million of 6.5% $25-par notes due 2026 (NYSE: CTBB) – consisting of $850 million sold on Aug. 11 and a fully exercised greenshoe of $127.5 million – were meantime 11 cents higher at $25.89.

Legg Mason priced Aug. 3.

Also, a trader noted that Sotherly Hotels Inc.’s $40.25 million of 8% series B cumulative redeemable preferreds – an issue priced Aug. 16 – were trading on the Nasdaq Global Select market under the ticker symbol “SOHOB.”

Paper was trading at $25.89 at midmorning, up from opening levels of $25.74.

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