American Equity below par; Public Storage preferreds fall; Associated Banc-Corp gains

By James McCandless

San Antonio, June 11 – The Thursday session in the preferred market saw widespread negativity on new negative economic outlooks.

Leading the secondary trading, American Equity Investment Life Holding Co.’s new $300 million 6.625% series B fixed-rate reset non-cumulative preferred stock closed below par.

Meanwhile, REIT Public Storage’s new 4.625% series L cumulative preferred shares finished the afternoon falling.

Elsewhere, in the finance space, Associated Banc-Corp’s new 5.625% series F non-cumulative perpetual preferreds gained ground.

Sector peer Bank of America Corp.’s 5% series LL non-cumulative preferred stock followed the negative trend.

JPMorgan Chase & Co.’s 4.75% series GG non-cumulative preferred stock was under pressure throughout the day.

American Equity under par

Leading Thursday’s secondary trading, insurance provider American Equity’s new $300 million 6.625% series B fixed-rate reset non-cumulative preferred stock closed below par on its first day.

The preferreds, trading under the temporary symbol “AEIHL,” were seen closing at $24.58 on volume of about 4.7 million shares.

The deal priced late Wednesday.

Public Storage falls

Meanwhile, real estate investment trust Public Storage’s new 4.625% series L cumulative preferred shares finished the afternoon falling.

The preferreds, trading under the temporary symbol “PUBXL,” were losing 27 cents to close at $24.70 with about 674,000 shares trading.

On Wednesday, the preferreds shed 3 cents.

Associated Banc-Corp gains

Elsewhere, in the finance space, Associated Banc-Corp’s new 5.625% series F non-cumulative perpetual preferreds gained ground.

The preferreds, trading under the temporary symbol “ABBCL,” picked up 11 cents to close at $24.98 on volume of about 414,000 shares.

Sector peer Bank of America’s 5% series LL non-cumulative preferreds (NYSE: BACPrN) declined by 50 cents to close at $24.69 with about 414,000 shares trading.

On Wednesday, the preferreds shaved off 4 cents.

JPMorgan’s 4.75% series GG non-cumulative preferred stock was under similar pressure throughout the day.

The preferreds (NYSE: JPMPrJ) chalked off 37 cents to close at $24.58 on volume of about 281,000 shares.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index saw a 1.88% dive, wider than the 0.93% loss from early Thursday trading.

The iShares US Preferred Stock ETF was down $1.12 to $34.47.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.