Morning Commentary: Preferred stocks remain strong in early midweek trading; liquidity still muted

By Stephanie N. Rotondo

Seattle, Dec. 21 – Despite the continued dip in liquidity, preferred stocks remained on an upward course in midweek trading.

The Wells Fargo Hybrid and Preferred Securities index was up 21 basis points at mid-morning. The index added 11 bps on Tuesday and 37 bps on Monday.

In early dealings, Capital One Financial Corp.’s 6.25% series C noncumulative perpetual preferreds (NYSE: COFPrC) were trading actively, rising 11 cents to $25.03.

KeyCorp’s 6.125% series E fixed-to-floating rate noncumulative perpetual preferreds (NYSE: KEYPrI) – a $500 million deal that priced Dec. 5 – were meantime 4 cents higher at $25.63.

The issue listed on Dec. 15.

Charles Schwab Corp.’s 5.95% series D noncumulative perpetual preferreds (NYSE: SCHWPrD) were another gainer, adding 4 cents to $24.50.

Going into year-end, a trader speculated that trading volumes would continue to lighten.

“It’s pretty quiet,” he said.

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