Morning Commentary: Preferreds start December firm; Eagle Point not yet priced; Entergy slips

By Stephanie N. Rotondo

Seattle, Dec. 1 – The preferred stock market was moving back up Tuesday after losing ground on Monday.

Monday was also the last trading day of November.

The Wells Fargo Hybrid and Preferred Securities index was up 10 basis points at mid-morning. The index ended the previous session off by 20 bps.

A trader said he had yet to see markets or any pricing information on Eagle Point Credit Co. Inc.’s planned offering of at least $25 million of $25-par unsecured notes due 2020.

“It might take another day for them to put that away,” he said.

The deal is coming via Incapital LLC.

Meanwhile, Entergy Louisiana LLC’s 6% $25-par first mortgage bonds due 2040 (NYSE: ELB) were softening after the company said late Monday that it was redeeming $32 million of the $150 million outstanding notes.

The bonds were off a nickel at $25.59 early in the session.

The redemption will occur Dec. 30. The redemption price is par plus accrued interest.

Overall, the preferred space was a bit muted. Chatter was that trading would be on the quieter side until Thursday, after the release of the Federal Reserve’s Beige Book on Wednesday.

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