Preferreds positive to end week; BNY Mellon deal trades around par; State Street mixed

By Stephanie N. Rotondo

Phoenix, April 24 – The preferred stock market ended Friday’s session with a positive tone, but a trader noted that liquidity continued to be subdued.

“You’ve got the Women’s Syndicate going on, so a lot of people are off desk and out in New York,” he said.

The Wells Fargo Hybrid and Preferred Securities index finished up 6 basis points.

The Bank of New York Mellon Corp.’s new $1 billion issue of 4.95% $1,000-par series E fixed-to-floating rate noncumulative preferreds – a deal that priced Thursday – were seen “hovering right around par” early in the session.

After the close, another market source pegged the issue at 100.375.

Goldman Sachs & Co., Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and BNY Mellon Capital Markets LLC ran the books.

Dividends will be fixed through June 20, 2020 and will be payable on the 20th day of June and December. After June 20, 2020, the dividend will float at Libor plus 324 bps and will be payable on the 20th day of March, June, September and December.

Meanwhile, State Street Corp. reported earnings that beat expectations Friday morning. A trader noted that the bank said it planned to sell about $750 million of preferred stock over the course of 2015.

“That’s pretty much expected,” the trader said. “They are all going to issue preferreds to take out the common.”

The bank’s existing preferreds ended the day mixed.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.