Morning Commentary: Comerica, First Horizon offer new preferred shares; preferreds gain

By Cristal Cody

Tupelo, Miss., May 20 – The preferred stock primary market continues to remain active on Wednesday with two issuers offering deals, sources report.

Comerica Inc. is offering non-cumulative perpetual fixed-rate reset preferred stock with initial price talk at 6% to 6.125%.

First Horizon National Corp. plans to price an offering of $25-par perpetual non-cumulative preferred stock, along with two tranches of senior notes, on Wednesday,

Week to date, new issue volume has included Brighthouse Financial Inc.’s upsized $350 million offering of $25-par 6.75% perpetual series B non-cumulative preferred stock on Monday and Truist Financial Corp.’s upsized $500 million of 5.25% perpetual non-cumulative preferred stock that priced on Tuesday.

Meanwhile, additional issuance is expected from Fortress Biotech, Inc., which begin marketing an add-on to its 9.375% $25-par series A perpetual preferred stock on Tuesday.

Preferred stocks stayed positive at the start of the session on Wednesday.

The Wells Fargo Hybrid and Preferred Securities index rose 0.2%.

The U.S. iShares Preferred Stock ETF gained 13 cents, or 0.38%, to $34.07 over the morning.

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