Morning Commentary: Preferreds firm; Bank of America preferreds flat; Customers quoted wide

By Stephanie N. Rotondo

Seattle, April 22 – Preferred stocks were aiming for a strong finish to the week in early Friday trading.

The Wells Fargo Hybrid and Preferred Securities index was up 11 basis points at mid-morning.

Recently priced deals remained on the radar. Bank of America Corp.’s $900 million of 6% series EE noncumulative perpetual preferreds were holding in a $25.16 to $25.20 range, according to a trader.

That issue came Monday via BofA Merrill Lynch.

Customers Bancorp Inc.’s $50 million of 6.45% series E fixed-to-floating rate noncumulative perpetual preferreds – a deal from Thursday’s business – were meantime pegged at $24.95 bid, $25.15 offered.

UBS Securities LLC and Morgan Stanley & Co. LLC led that deal. When declared, dividends will be paid on a quarterly basis at the fixed rate until June 15, 2021. At that time, the rate will float at Libor plus 514 bps.

Looking to the coming week, a trader said he was “hearing there’s an active calendar.”

However, he did not have any specific names.

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