Morning Commentary: New York Community Bancorp, Spark Energy list; Global Indemnity rebounds

By Colin Hanner

Chicago, March 22 – Preferred stocks were generally quiet on Wednesday morning, a trader said, as a few issues listed on the New York Stock Exchange and the Nasdaq amid mixed trading in broader equities.

The Wells Fargo Hybrid and Preferred Securities index was up 3 basis points at mid-morning, while the U.S. iShares Preferred Stock ETF was down 8 bps.

The first of two new listings, New York Community Bancorp Inc.’s $515 million of 6.375% series A fixed-to-floating rate noncumulative perpetual preferreds, hit the NYSE under the ticker, “NYBCP.”

A trader said they were last traded at $24.60.

“It’s crazy how well that did,” the trader said.

The other listing, Spark Energy Inc.’s series A fixed-to-floating cumulative redeemable preferreds, will trade under the ticker, “SPKEP” on the Nasdaq Global Select Market.

Those were quoted at $25.31 bid, $25.81 offer.

“There are no offers with that one or no one’s paying attention,” a trader said.

Global Indemnity Ltd.’s $120 million of 7.875% $25-par subordinated notes due 2047 – a deal priced Thursday and freed Monday – was trading at $24.85, rebounding near levels seen on Tuesday morning.

As far as new deals coming to market this week, a trader said there are “things in the pipeline, but nothing’s coming this week.”

“It’ll probably be mayhem next week, I’m guessing,” the trader said.

In the secondary space, National Retail Properties’ 5.7% series E cumulative redeemable depository preferreds (NYSE: NNNPrE) were among the most active but traded flat at $24.19.

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