Morning Commentary: Safe Bulkers joins forward calendar; at least three deals expected this week

By Stephanie N. Rotondo

Phoenix, June 23 – A preferred stock trader said he was hearing at least three new deals were going to hit the pipeline this week.

Safe Bulkers Inc. got the ball rolling on Monday, announcing an offering of series D cumulative redeemable perpetual preferreds.

However, the trader said he had yet to see any gray markets for that issue, which was coming via Morgan Stanley & Co. LLC and UBS Securities LLC.

As for the company’s existing preferreds, the 8% series C cumulative redeemable perpetual preferreds (NYSE: SBPC) were off 12 cents at mid-morning at $25.22.

Among recent deals, National General Holdings Corp.’s $55 million of 7.5% series A noncumulative preferreds – a deal that priced Wednesday – were quoted at $24.70 bid, $24.75 offered.

As for JPMorgan Chase & Co.’s $850 million of 6.3% series W noncumulative perpetual preferreds, they were pegged at $24.83 bid, no offers.

That issue entered the market on June 17.

Overall, the preferred stock market was firm as the week started.

The Wells Fargo Hybrid and Preferred Securities index was up 15 basis points in early trading.

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