JPMorgan’s recent deal gets temporary ticker; Triangle to list on NYSE; UBS trades up

By Stephanie N. Rotondo

Phoenix, Feb. 9 – The preferred stock market ended Monday’s session with a positive tone, despite what one market source characterized as “light-ish” volume.

The Wells Fargo Hybrid and Preferred Securities index finished 18 basis points higher.

In the primary, JPMorgan Chase & Co.’s new $1.2 billion issue of 6.125% series Y noncumulative preferreds was the day’s most actively traded security, with more than 3.44 million preferred shares changing hands.

The new issue was also trading under a temporary symbol, a trader reported.

The deal came Feb. 5. The temporary ticker is “JPQMP.”

Additionally, the New York-based bank said in a regulatory filing on Monday that its $180 million greenshoe had been exercised, lifting the total amount outstanding to $1.38 billion.

The paper closed at $24.86, down 6 cents. A trader quoted the issue at $24.85 bid, $24.90 offered early in the day.

“I’m sure [the greenshoe is] why it is down,” a source said.

J.P. Morgan Securities LLC ran the books on the upsized deal. Joint lead managers were BofA Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC.

Meanwhile, Triangle Capital Corp.’s $75 million of 6.375% $25-par notes due March 15, 2022 are slated to list on the New York Stock Exchange on Tuesday, according to a source.

The deal came Feb. 4. The ticker symbol will be “TCCB.”

The source said he had not seen any markets for the baby bonds, which priced via Keefe Bruyette & Woods Inc., Raymond James & Associates Inc., BB&T Capital Markets and Janney Montgomery Scott LLC.

UBS gains ground

UBS AG’s floating-rate noncumulative trust preferred securities (NYSE: UBSPD) were “up a lot,” a source said, as the shares ended up 31 cents, or 1.63%, at $19.30.

“I guess [the gains occurred] because their banking franchise in Switzerland is looking better than HSBC’s,” the source quipped, referring to new evidence that suggests HSBC’s Swiss arm allegedly helped funnel money for drug lords and fugitives.

All joking aside, the source noted that the movement could have been due to the fact that it’s a floating-rate security and “Treasury rates backed up.” With that particular piece of paper having “no floor, higher rates are good for this security.”

UBS was in the headlines Monday as the Justice Department widened an investigation into the bank and its foreign currency trading hijinks. But the source said the news was “a confirmation of what everybody was expecting,” adding that it would not have resulted in the preferreds trading higher.

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