KeyCorp’s new deal active, bucks downward trend; DTE lists on NYSE; GSE paper weakens

By Stephanie N. Rotondo

Seattle, Dec. 8 – KeyCorp’s $500 million of 6.125% series E fixed-to-floating rate noncumulative preferreds were busy – and better – on Thursday.

The paper ended at $25.35, up 19 cents.

A trader saw the issue at $25.25 bid, $25.32 offered at mid-morning, which was down a touch from the previous close.

However, there was a high print with a $27-handle in early dealings.

The deal came Monday, upsized from $250 million and tight to the 6.25% area price talk. The issue freed from the syndicate on Tuesday and is trading under a temporary symbol, “KYYPP.”

DTE Energy Co.’s $280 million of 6% $25-par 2016 series F junior subordinated debentures due 2076 meantime listed on the New York Stock Exchange, as was expected.

The ticker symbol is “DTY.”

The issue finished at $24.60, up from $24.24 at the open, a trader said.

The Wells Fargo Hybrid and Preferred Securities index traded down 22 basis points.

Still, a market source remarked that the preferred space did “way better than Treasuries, so all things considered, not too bad.”

Given the overall weakness of the day, Fannie Mae and Freddie Mac preferreds remained on the active side but drifted down in sympathy.

Fannie’s 8.25% series S fixed-to-floating rate noncumulative preferreds (OTCBB: FNMAS) waned 11 cents, or 1.28%, to $8.49. Freddie’s 8.375% fixed-to-floating rate noncumulative preferreds (OTCBB: FMCKJ) declined 20 cents, or 2.47%, to $7.90.

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