Morning Commentary: Preferred stocks start week with firm tone; Saratoga steady; Deutsche gains

By Stephanie N. Rotondo and Colin Hanner

Seattle, Dec. 19 – The preferred market was quiet on Monday morning, with no newer issues making much movement and a resounding, yet modest, firmness felt in the secondary market.

“You’re going to see it this way the rest of the year, I’d imagine,” a trader said.

The Wells Fargo Hybrid and Preferred Securities index was up 27 basis points at mid-morning.

Other than some dividend announcements, a trader said the news surrounding preferreds was absent but noted that Saratoga Investment Corp.’s $65 million of 6.75% $25-par notes due 2023 – a deal priced Wednesday – were trading with a $24.70 to $24.85 bid.

There were no offers at mid-morning, the trader said.

Meanwhile, Deutsche Bank AG’s trust preferreds were faring well as it was reported that the German bank could settle with the U.S. Department of Justice this week.

The settlement is in relation to an investigation over the bank’s sale of toxic mortgages.

The 7.6% TruPs (NYSE: DTK) were up a dime in early dealings, trading at $24.54. The 8.05% TruPs (NYSE: DKT) were meantime up 19 cents at $25.76.

Back in September, it was reported that Deutsche Bank could be slammed with a penalty as big as $14 billion. But the bank said it would not pay that amount, instead opting to negotiate with the federal government to hit an amount closer to that given to its sector peers.

© 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.