JPMorgan's new preferreds eyed; market edges lower; 'active' primary calendar coming up

By Christine Van Dusen

Atlanta, Jan. 15 - A new issue of preferred stock from JPMorgan Chase & Co. received the most attention during a more active but still lower-volume Wednesday for the preferred stock market.

"It's a little bit busier than yesterday in the secondary market, but it's still on the light-ish side," a market source said. "The market was up slightly, maybe a penny or two cents, early in the day. It faded into the last half-hour of trading and ended up being maybe down a penny."

JPMorgan on Tuesday priced $2 billion of 6¾% series S fixed-to-floating rate perpetual preferred stock at par with underwriter J.P. Morgan Securities LLC. Beginning Feb. 1, 2024, the dividend resets to Libor plus 378 basis points.

"It really moved up and now is locked at around 101," a trader said during the morning.

The notes closed Wednesday at 101, another market source said.

No new deals were reported on Wednesday, though the issuance pipeline is expected to fill up as soon as banks and insurance companies finish reporting their company earnings.

"We're hearing rumors of an active calendar coming up," the trader said.

Among existing issues, Deutsche Bank Contingent Capital Trust II's 6.55% trust preferred securities were among the most active on Wednesday morning, quoted up a penny at $25.08 on 403,864 shares.

Morgan Stanley Capital Trust VI's 6.6% capital securities were spotted at $24.81, up 18 cents on a light 69,445 shares.

And Wells Fargo & Co.'s 8% non-cumulative perpetual preferred stock, series J, traded Wednesday at $28.35, up 12 cents on volume totaling 40,771.

"It seems like we had a pretty good move to start the year," the trader said. "Now, on light volume, we've moved up and are now just sitting there. There's no big money starting to come in. But it will pick up into next week and the week after that."

RBS trades down

Later in the day, Royal Bank of Scotland's 7¼% non-cumulative dollar preference shares, series T, saw some action, trading down 6 cents at $24.90 on volume totaling 514,591.

The Deutsche Bank 6.55% trust preferred securities moved to $25.13 by day's end on 422,239 in total volume.

And Wells Fargo's 8% preferreds finished Wednesday at about $28.36 on volume totaling 230,664.a

© 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.