Morning Commentary: Early month-end trading turns positive; Deutsche Bank doing damage control

By Stephanie N. Rotondo

Seattle, Sept. 30 – The final trading day of the month – and the quarter – had a firmer tone, pushing the preferred stock market into higher territory.

The Wells Fargo Hybrid and Preferred Securities index was up 13 basis points at mid-morning. The index had traded off 91 bps on Thursday amid a broader market sell-off. That sell-off was spurred by concerns that OPEC’s plan to cut production would fail, as well as concerns about the financial health of Deutsche Bank AG.

However, investors appeared to be showing signs of confidence in the German bank on Friday, as both the company’s preferreds and common stock were on the rise.

The 7.6% trust preferred securities (NYSE: DTK) were up 34 cents, or 1.5%, at $23.19 at mid-morning. Over 1.05 million preferreds had already traded by that time.

The 8.05% TruPS (NYSE: DKT) were meantime 39 cents better, or 1.66%, at $23.76.

And, the 6.55% TruPS (NYSE: DXB) had added 42 cents, or 1.89%, to $22.65.

As for the equity (NYSE: DB), it was up 78 cents, or 6.75%, at $12.26.

The bank has been in damage control mode of late, with the latest effort focusing on the firm’s employees. John Cryan, chief executive officer, reportedly sent out an internal memo to staff assuring them that the bank’s fundamentals were solid and that the recent rout was due to the media causing “unjustified concerns.”

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