SoCal Edison, Capital One deals strengthen; National General notes get temporary symbol

By Stephanie N. Rotondo

Phoenix, Aug. 19 – The preferred stock market ended slightly weaker Wednesday, even as the latest Federal Reserve meeting minutes indicated an interest rate increase sooner rather than later.

The minutes showed that the central bank was seeing signs of economic improvement, though inflation remained a concern.

The Wells Fargo Hybrid and Preferred Securities index closed down 4 basis points.

Among recently priced deals, Southern California Edison Co.’s SCE Trust IV’s $325 million of 5.375% fixed-to-floating rate trust preference securities – a deal priced Monday – continued to surge upward, with a trader quoting the preferreds at $25.30 bid, $25.52 offered.

Another market source said the issue was “very heavily traded,” with about 1.18 million shares being exchanged.

The source deemed the issue up 11 cents at $25.40. Another source echoed that level but called it up 16 cents.

And, National General Holdings Corp.’s $100 million of 7.625% $25-par subordinated notes due 2055 were trading at $24.50 bid, $24.55 offered at mid-morning but came in to settle at $24.18.

Paper opened the day trading at $24.50.

The notes priced Aug. 11.

A trader said that deal had finally been assigned a reporting symbol, “NGHCZ.”

“We probably won’t see any more deals this week just until they get these deals cleaned up,” the trader said.

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