Morning Commentary: Preferred market trades mixed; tax plan overshadows primary; Barclays falls

By Stephanie N. Rotondo

Seattle, Feb. 10 – The preferred stock market was again mixed in early trading, as the Wells Fargo Hybrid and Preferred Securities index dipped 4 basis points but the U.S. iShares Preferred Stock index rose 6 bps.

A trader noted that Thursday’s snowstorm on the East Coast continued to be a factor in overall trading.

“A lot of people are still out,” he said.

The trader also remarked that there was buzz that a new issue had been planned for next week, but added that “I think it got pushed.”

The reason for the delay, he speculated, was that the new administration was talking about unveiling a tax plan.

“A lot of companies are waiting [to issue new paper] to see how [the tax plan] effects them,” he said.

As such, he expects that the primary will remained muted in the near-term.

However, he also opined that redemptions might start popping up, following on the heels of Barclays Bank plc’s $1,375,000,000 call of its 7.1% series 3 noncumulative callable dollar preference shares.

The redemption – planned for March 15 – was announced late Thursday. The redemption price is $25.44375 per share.

In Friday trading, the issue (NYSE: BCSPrA) was off 50 cents, or 1.91%, at $25.41.

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