JPMorgan preferreds positive; Qwest $25-par notes decline; Northern Trust better

By James McCandless

San Antonio, Nov. 13 – The preferred market finished the midpoint of the week with a positive shift.

The primary market saw Compass Diversified Holdings LLC price a $100 million offering of $25-par series C cumulative preferred shares at par with a dividend of 7.875%.

At the top of the secondary, JPMorgan Chase & Co.’s recent 4.75% series GG non-cumulative perpetual preferred stock saw positivity.

Elsewhere in finance, Synchrony Financial’s new 5.625% series A non-cumulative perpetual preferred stock was also lifted.

Sector peer Capital One Financial Corp.’s 5% series I fixed-rate non-cumulative perpetual preferreds moved higher.

In the communications space, Qwest Corp.’s 6.5% notes due 2056 declined.

Meanwhile, asset manager Northern Trust Corp.’s recent 4.7% series E non-cumulative perpetual preferred stock ended on better footing.

Compass prices

The primary market saw Compass price a $100 million offering of $25-par series C cumulative preferred shares at par with a dividend of 7.875%.

There is a $15 million greenshoe.

Morgan Stanley & Co. LLC, RBC Capital Markets, LLC and UBS Securities LLC are the joint bookrunners.

Dividends will be payable on each Jan. 30, April 30, July 30 and Oct. 30, commencing on Jan. 30, 2020.

The preferreds are redeemable on or after Jan. 30, 2025 at par. Prior to that, the preferreds are redeemable within 60 days after a tax redemption event at par.

JPMorgan gains

At the top of the secondary on Wednesday, JPMorgan’s recent 4.75% series GG non-cumulative perpetual preferred stock saw positivity by the end of the day.

The preferreds, trading under the temporary symbol “JPGGL,” were up 15 cents to close at $25.01 on volume of about 617,000 shares.

Elsewhere in the finance space, Synchrony’s new 5.625% series A non-cumulative perpetual preferred stock was also lifted in the session.

The preferreds, trading under the temporary symbol “SNFI,” gained 12 cents to close at $25.22 with about 346,000 shares trading.

Sector peer Capital One’s 5% series I fixed-rate non-cumulative perpetual preferreds moved higher.

The preferreds (NYSE: COFPrI) improved by 15 cents to close at $25.02 on volume of about 274,000 shares.

Qwest down

In the communications space, Qwest’s 6.5% notes due 2056 declined by the end of the afternoon.

The notes (NYSE: CTBB) dipped 3 cents to close at $25.43 with about 616,000 shares trading.

Northern Trust rises

Meanwhile, asset manager Northern Trust’s recent 4.7% series E non-cumulative perpetual preferred stock ended the day on better footing.

The preferreds, trading under the temporary symbol “NTREL,” picked up 9 cents to close at $25.13 on volume of about 277,000 shares.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index ended the session up by 0.2%, improving on the 0.16% rise from early Wednesday trading.

The iShares US Preferred Stock ETF was up 19 cents to $37.26.

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