Morning Commentary: Preferred stock market firm in early trades; recently priced deals holding up

By Stephanie N. Rotondo

Phoenix, Aug. 3 – The preferred stock market was modestly higher early Monday despite weakness seen in the broader markets.

The Wells Fargo Hybrid and Preferred Securities index was up 3 basis points at mid-morning.

Despite the day’s positive start, a trader lamented that it was “very quiet” in terms of trading.

Recent deals were meantime holding at or near their recent highs.

From Wednesday’s business, IberiaBank Corp.’s $75 million of 6.625% series B fixed-to-floating rate noncumulative preferreds were seen bid for at $24.80.

That issue came upsized from $50 million, with BofA Merrill Lynch and UBS Securities LLC leading the deal. On Thursday, the preferreds were assigned a temporary symbol, “IBBRP.”

The Charles Schwab Corp.’s $600 million of 6% series C noncumulative perpetual preferreds were pegged at $25.15.

The preferreds priced July 27 and were soon trading at or above par. The issue was assigned the temporary symbol “CSABP” on Wednesday.

BofA Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities and Wells Fargo Securities LLC ran the books.

Going back a little further, JPMorgan Chase & Co.’s $1.1 billion of 6.15% series BB noncumulative preferreds – a deal priced July 22 via J.P. Morgan Securities LLC – were quoted at $24.93 bid, $24.98 offered.

The paper began trading with a temporary symbol, “JMPRP,” on July 27.

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