Morning Commentary: DynaGas assigned temporary symbol; Citi, Goldman up following earnings

By Stephanie N. Rotondo

Phoenix, July 16 – Preferred stocks were firm early Thursday as recent events appeared to be calming down.

“It seems like Greece is fixed and it seems like China is back on the right path,” a trader said, adding that given the state of things, “seems like we’ll definitely see a rate hike in September.”

The Wells Fargo Hybrid and Preferred Securities index was up 22 basis points at mid-morning.

DynaGas LNG Partners LP’s $75 million of 9% series A cumulative redeemable preferred units – a deal from Monday – was assigned a temporary trading symbol, according to a trader.

The temporary ticker is “DYNGF.”

The trader quoted the recently priced issue at $24.50 bid, $24.55 offered, noting that investors might be shying away from the name given weakening oil prices.

Meanwhile, “banks had great earnings,” a trader said. “So those preferreds are holding their own.”

Citigroup Inc. released its numbers on Thursday, as did Goldman Sachs Group Inc. For its part, Citi posted its highest earnings in eight years, boosted by cost-cutting and restructuring efforts and declining legal costs.

Citi’s 6.875% series K fixed-to-floating rate noncumulative preferreds (NYSE: CPK) were up 17 cents early in the day, trading at $26.92. Goldman’s 6.375% series K fixed-to-floating rate noncumulative preferreds (NYSE: GSPK) were also better, rising 6 cents to $26.38.

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