Market thus far avoids major sell-off; SunTrust frees to trade; Entergy Arkansas to list

By Stephanie N. Rotondo

Phoenix, Dec. 14 - A preferred stock trader said he was "not seeing a strong sell-off" in the market, though he had expected to see such occur due to uncertainties regarding the fiscal cliff.

"People could be hedged, they could be well positioned," he said of the lack of massive declines. "I think people are still hoping they get something done."

The preferred market also managed to stage a comeback by the end of the day, though a market source was not sure what the driver was.

"We were down until around 2 [p.m. ET] and then it switched direction," the source said. According to one preferred index, the market even closed up slightly, despite light volume.

Of the day's dealings, SunTrust Banks Inc.'s new $450 million of 5.875% series E noncumulative perpetual preferreds freed from the syndicate in early Friday trading.

The deal priced Thursday.

Elsewhere, Entergy Arkansas Inc.'s $200 million of 4.9% $25-par first mortgage bonds due 2052 are expected to list on the New York Stock Exchange on Monday, according to a trader.

SunTrust frees up

SunTrust Banks' newly priced $450 million issue of 5.875% series E noncumulative perpetual preferreds freed to trade in early Friday trading.

A trader said the preferreds were trading at $24.80 bid, $24.85 offered at midday.

After the close, a market source said the issue was trading in a range of $24.75 to $24.78 in the last minutes of trading.

Entergy Arkansas set to list

Entergy Arkansas' recent offering of 4.9% first mortgage bonds due 2052 is expected to begin trading on the NYSE as early as Monday, according to a trader.

He said the expected symbol is "EAB."

The trader quoted the notes at $25.15 bid, $25.20 offered at midafternoon.

Another market source said the issue closed up a dime at $25.25, adding that the paper was among the day's most actively traded.

The Little Rock-based power producer priced the new deal on Dec. 6.

Retail Properties, TCF busy

Two deals that priced during the course of the week were unexpectedly on the day's most actively traded list, as the issues had not seen much action since pricing.

Retail Properties of America Inc.'s $125 million of 7% series A cumulative redeemable preferreds were busy, but flat at $24.80, according to a source.

That issue came on Tuesday.

TCF Financial Corp.'s $100 million of 6.45% series B noncumulative perpetual preferreds - which came Wednesday - were also active, albeit weaker.

The source saw the preferreds falling a quarter to $24.75.

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