Preferred stocks subdued as banks start to report quarterly results; Medley sells $25-pars

By Stephanie N. Rotondo

Seattle, Jan. 13 – Bank earnings season kicked off on Friday, with Wells Fargo & Co., Bank of America Corp. and JPMorgan Chase & Co. all reporting fourth-quarter results.

However, the news was doing little to spur activity in the preferred stock space.

“People were expecting good earnings,” a trader said. “BofA is the only one that kind of disappointed. Wells and JPMorgan did well.”

BofA posted earnings per share of 40 cents on revenue of $20.22 billion. EPS was better than analysts’ projections of 38 cents, though revenue was lower than the $20.76 billion forecast.

Though the trader said Wells Fargo outperformed BofA in its earnings report, analysts polled by Thomson Reuters disagreed. The San Francisco-based bank posted EPS of 96 cents, versus estimates of $1.00. Revenue came in at $21.58 billion, compared to expectations of $22.45 billion.

As for JPMorgan, adjusted EPS was $1.58. Analysts polled by Thomson Reuters had predicted EPS of $1.44.

Total revenue was up 2.5% at $24.33 billion, versus forecasts of $23.95 billion.

The primary had a deal enter the market, as Medley LLC priced a $30 million offering of 7.25% $25-par notes due Jan. 30, 2024.

The deal came upsized from $25 million.

A trader saw the paper at $24.75 in early dealings, adding that the paper had already freed to trade.

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