Midday Commentary: Preferreds firm but muted; CommonWealth REIT's new issue lists on NYSE

By Stephanie N. Rotondo

Phoenix, July 30 - The preferred market was "trickling up a little bit higher," a trader reported Monday.

However, things were generally muted ahead of the end of the month. Investors were either slowly reshuffling positions or simply sitting back and waiting.

And there is a lot to wait for, a trader remarked.

In addition to the ongoing European saga, the Federal Reserve is set to meet later this week to discuss whether or not Quantitative Easing 3 will be necessary. Employment numbers are also going to be released during the week.

Meanwhile, there was "no word of any new deals yet," the trader said. Last week, there were also no deals announced Monday, but the new issue calendar was jam-packed regardless.

In recent deals, CommonWealth REIT's $175 million of 5.75% senior notes due 2042 officially listed on the New York Stock Exchange Monday.

The ticker symbol is "CWHO." The deal priced July 20.

Paper was trading at $24.66 at midday, down from opening levels of $24.70.

Also, BB&T Corp.'s new $1 billion issue of 5.625% series E noncumulative perpetual preferred stock was seen trading at $25.25, while Dynex Capital Inc.'s $50 million of 8.5% series A cumulative redeemable preferreds were pegged at par.

BB&T's deal priced Tuesday, while Dynex's issue came Wednesday.

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