Preferreds rally in late trading; Wintrust Financial frees to trade; Kimco Realty active

By Stephanie N. Rotondo

Phoenix, June 23 – A preferred stock market trader said there was “not a whole lot of movement” in the secondary market on Tuesday.

A second market source said the market was “pretty flat” after trading down “pretty much all day.”

At its worst, he said, the market was off 3 to 4 basis points, but it eventually closed slightly higher.

The Wells Fargo Hybrid and Preferred Securities index ended 1 bp higher but was off 4 bps at mid-morning.

As the preferred space was just modestly moved, the broader markets were gaining ground as investors hoped for a deal in Greece. A fresh round of economic data, including a rise in new home sales, was also playing a role.

In recent deals, Wintrust Financial Corp.’s $125 million of 6.5% series D fixed-to-floating-rate noncumulative perpetual preferreds, a deal that priced Monday, freed to trade, according to a trader.

He pegged the issue at $24.70 early in the session, and a source echoed that level at day’s end.

Incapital LLC and U.S. Bancorp ran the books.

Meanwhile, Valley National Bancorp’s $115 million of 6.25% series A fixed-to-floating-rate noncumulative preferreds were “hanging” around “$24.95-ish,” a trader said.

At the bell, the paper was seen at $24.90, down 15 cents.

Looking ahead, a trader said he had heard “no talk on the horizon” for any other new issues this week.

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