Midday Commentary: Market wobbles as week begins; DDR plans offering; Wells Fargo, Astoria list

By Stephanie N. Rotondo

Phoenix, March 25 - A preferred stock trader was surprised that preferreds were not trading higher as Monday's session got underway.

"I thought with everything getting cleared up in Cyprus, we'd see a rally," he said. "We started off strong, but then it faded."

He also noted that "it sounds like a lot of people are out on vacation."

DDR Corp. announced a new offering of class K cumulative redeemable preferreds.

Price talk is 6.25% to 6.375%, according to a trader.

The trader saw the paper trading at less 23 cents in the midday gray market.

Meanwhile, the Hanover Insurance Group Inc.'s recently priced $175 million of 6.35% $25-par subordinated debentures due 2053 - a deal that priced Wednesday - were quoted at $25.10 bid, $25.17 offered.

In new listings, Wells Fargo & Co.'s $575 million of 5.25% series P class A noncumulative perpetual preferreds hit the New York Stock Exchange under the ticker symbol "WFCPP."

The preferreds were trading at $24.94 at midday, up a penny from the previous close but down from opening levels of $25.05.

Also listed were Astoria Financial Corp.'s $135 million issue of 6.5% noncumulative perpetual preferreds, a deal that came March 12.

The ticker is "AFPC." The securities were at $24.84, down 11 cents from the previous close and off 3 cents from the open.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.