Morning Commentary: Preferreds steady to begin week; Bank of America earnings beat expectations

By Stephanie N. Rotondo

Seattle, July 18 – The preferred stock market was holding its ground as Monday trading got underway.

The Wells Fargo Hybrid and Preferred Securities index was unchanged from Friday levels as of mid-morning.

Bank of America Corp.’s 6% series EE noncumulative preferreds (NYSE: BACPA) were trending higher after the company reported earnings that beat expectations.

The preferreds were up 18 cents in early trading at $25.79.

The Charlotte, N.C.-based bank said that bond trading revenue helped its bottom line, though the results were lower than those seen in the previous year.

As for the primary space, a trader said he had not heard “of any new deals coming this week.”

“But I would be surprised if we didn’t see a few deals with bank earnings,” he noted.

As for deals from the previous week, Public Storage’s $300 million of 4.95% series D cumulative preferreds – a deal priced Wednesday – were continuing to trade around par, according to a trader.

Meanwhile, Stifel Financial Corp.’s $150 million of 6.25% series A noncumulative perpetual preferreds – a deal priced July 11 – were seen bid at $25.90.

Both issues are trading under temporary symbols, “PBSDP” for Public Storage and “STIFP” for Stifel.

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