JPMorgan preferreds trade in size; market softens; ‘business as usual until next week’

By Christine Van Dusen

Atlanta, Feb. 6 – The new issue of preferred stock from JPMorgan Chase & Co. received some attention in trading on Friday morning as oil prices climbed after the United States released better-than-expected jobs numbers for January.

“The market is a hair softer, with the good jobs number,” a trader said.

JPMorgan’s $1.2 billion 6 1/8% series Y noncumulative perpetual preferreds, upsized from $400 million, was seen at about $24.90 on Friday morning, he trader said.

“Fairly active, trading in good sized blocks,” he said.

Shortly before the deal priced on Thursday, the issue was quoted at $24.83 bid, $24.85 offered. At mid-morning, a trader saw an early gray market quote of $24.70 bid, $24.77 offered, adding that the paper had been around $24.80 prior to price talk being downwardly revised to 6.125% to 6.25% from the early level of 6.25% to 6.375%.

J.P. Morgan Securities LLC is running the books on the new deal.

Among existing JPMorgan issues, the 5½% series O noncumulative preferreds (NYSE: JPMPD) were seen during Friday’s session at $24.21 after closing on Thursday at $24.13. The notes closed Friday at $24.18 on 172,925 shares traded.

The company’s 6.3% series W noncumulative preferreds (NYSE: JPMPE) traded at $25.599 on Friday after Thursday’s level of $25.61.

Overall sentiment was steady. A trader said: “I think it’s business as usual until next week. I wouldn’t be surprised if we saw more activity out of some of the banks. But for now it’s all quiet but fairly strong in the preferred market.”

In other trading among preferreds on Friday, Merrill Lynch Capital Trust I’s 6.45% trust preferred securities were seen moving down 4 cents to $25.53 on just 30,036 shares traded.

And Royal Bank of Scotland’s 7 ¼% noncumulative dollar preference shares series T were seen rising 3 cents to $25.50 on 21,504 shares traded.

At the end of the session, Barclays Bank plc’s 8 1/8% non-cumulative callable dollar preference shares series 5 moved up 2 cents to $26.49 on 272,163 shares traded.

Barclays Bank plc’s 7.10% non-cumulative callable dollar preference shares series 3 ADR ticked down 6 cents to $26.18 on 202,283 shares traded at the end of the day.

And Merrill Lynch Capital Trust II 6.45% trust preferred securities moved lower by 7 cents to $25.49 on 164,614 shares traded.

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