Morning Commentary: Preferreds pare early losses; SoCal Edison, Capital One list on NYSE

By Stephanie N. Rotondo

Phoenix, Aug. 26 – A preferred stock trader said things were “quieting down” early Wednesday, following the last two volatile sessions.

“I think people are waiting to see what happens,” he said, noting that long Treasuries were up and the equity markets were also attempting to climb higher.

“There are a lot of $1,000-par issues offered out there,” the trader added.

The Wells Fargo Hybrid and Preferred Securities index was off 3 basis points at mid-morning. However, the index was paring its losses, as it had been down 7 bps earlier in the session.

As expected, Southern California Edison Co.’s SCE Trust IV’s $325 million of 5.375% fixed-to-floating rate trust preference securities and Capital One Financial Corp.’s $500 million of 6.2% series F noncumulative perpetual preferred stock both began trading on the New York Stock Exchange on Wednesday.

The Southern California Edison symbol is “SCEPJ.” The Capital One ticker is “COFPF.”

Both deals priced Aug. 17.

A trader quoted the Southern California Edison preferreds at $25.05 bid, $25.10 offered. The paper opened at $25.15.

Capital One was meantime pegged at $24.60 bid, $24.69 offered versus opening levels of $24.70.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.