Morning Commentary: BNY Mellon offers new issue; preferreds soften; U.S. Bancorp dips

By Cristal Cody

Tupelo, Miss., Oct. 26 – Bank of New York Mellon Corp. is marketing series H noncumulative perpetual preferred stock (Baa1/BBB) in the preferred primary market on Monday.

The dividend on the preferreds will reset March 20, 2026.

Otherwise, activity was light with stocks down and the preferred stock market soft at the open on Monday as coronavirus infections resurge in the United States and across Europe.

The Wells Fargo Hybrid and Preferred Securities index dropped 9.77, or 0.39%, to 2,499.15 on Monday.

The U.S. iShares Preferred Stock ETF fell 25 cents, or 0.68% to $36.82 at the start of the session.

The Dow Jones industrial average was off 2.31%, while the S&P 500 declined 1.88% in early trading.

Financial paper also was soft in early trading.

U.S. Bancorp’s new 3.75% series L non-cumulative perpetual preferred stock (A3/BBB/BBB+) remained under pressure.

The preferreds, trading under the temporary symbol “UBKPL,” declined 2 cents to $24.66 with about 54,000 shares trading over the morning.

U.S. Bancorp plans to list the preferreds on the New York Stock Exchange under the symbol “USBPrQ.”

On Friday, the preferreds fell 1 cent to close at $24.68 on about 499,000 shares traded.

U.S. Bancorp sold $500 million of the $25-par preferreds on Oct. 20.

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