Midday Commentary: Preferred stock trading slow in aftermath of Hurricane Sandy

By Stephanie N. Rotondo

Phoenix, Oct. 31 - It was relatively slow-goings for the preferred stock market Wednesday, as the markets reopened in the aftermath of Hurricane Sandy.

"Everyone in New York is trying to get their offices back together," said one Midwest-based trader. "We've had a few markets from Street brokers, but no one's really in. Everybody is working remotely."

The trader also speculated that the chaos that resulted from Sandy's storm would mean no new issues this week.

"It'll probably continue to be slow-going into the election," he said.

As for the day's goings-on, the trader said that "the only things that are really moving are things that went ex-dividend."

However, Bank of America Corp.'s 7% capital securities (NYSE: BACPW) were quite active, but steady at $25.23.

That issue is being called Nov. 5.

In other callable issues, Bank of New York Mellon's recently called issues - the 6.875% and 5.95% trust preferreds - were moving downward in midweek trading.

The 6.875% preferreds (NYSE: BKPE) were off 63 cents, or 2.42%, to $25.37 at midday. The 5.95% paper (NYSE: BKPF) had lost 27 cents, or 1.07%, as of midafternoon, trading around $25.09.

Those issues will be called Nov. 26.

In recent deals, Regions Financial Corp.'s new 6.375% series A noncumulative preferreds - a $500 million deal that priced Oct. 25 - was pegged at $24.80.

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