Morning Commentary: Preferred stocks reverse course after two days of losses; banks improve

By Stephanie N. Rotondo

Seattle, June 28 – The preferred stock market was rebounding early Tuesday, following the trend of the broader markets.

The Wells Fargo Hybrid and Preferred Securities index was up 62 basis points at mid-morning. It closed down 53 bps on Monday and as many points on Friday after it was learned that the United Kingdom had voted to leave the European Union.

As uncertainties abound about what the so-called Brexit means, chatter is that Tuesday’s gains were due to the previous losses being overdone.

As for trading, both European and domestic banks were regaining ground.

Among European financials, Barclays Bank plc’s 8.125% series 5 noncumulative callable dollar preference shares (NYSE: BCSPD) improved by 40 cents, or 1.6%, to $25.43 in early trades. Royal Bank of Scotland Group plc’s 7.25% series T noncumulative dollar preference shares (NYSE: RBSPT) were also up 40 cents, or 1.62%, at $25.05.

In Deutsche Bank AG paper, the 7.6% trust preferred securities (NYSE: DTK) were 45 cents higher, or 1.8%, at $25.39.

In domestic banks, Wells Fargo & Co.’s 5.5% series X class A noncumulative perpetual preferred stock (NYSE: WFCPX) continued to head higher after rallying late Monday.

The preferreds were at $25.61 at mid-morning, up 17 cents.

© 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.