Priority Income’s new issue seen under par; Deutsche bank slides; MetLife improves

By James McCandless

San Antonio, June 28 – Secondary trading in the preferred market saw increased volume with an overall positive bent.

Priority Income Fund, Inc.’s new $34 million term preferred stock due 2025 was seen trading below par.

Deutsche Bank AG’s 8.05% trust preferred securities led the secondary market as the company failed the latest round of Federal Reserve stress tests.

MetLife, Inc.’s $805 million of 5.625% series E non-cumulative preferred shares gained.

Energy Transfer Partners, LP’s 7.375% series C fixed-to-floating rate cumulative redeemable perpetual preferred units rose.

Priority Income below par

Priority Income Fund’s new $34 million of $25-par series A term preferred stock due 2025 was seen trading below par on its first day in the market.

The preferreds, trading under the temporary ticker “PIFNP,” were spotted at $24.58 with about 45,000 shares trading.

The deal was priced on Wednesday.

Deutsche Bank down

Deutsche Bank’s 8.05% trust preferred securities were on top of secondary trading. After the market close, reports confirmed that the company’s U.S. arm has failed the Federal Reserve’s most recent stress test, citing “widespread and critical deficiencies across the firm’s capital-planning practices.”

Last year, the Federal Reserve designated the bank’s American operations to be in “troubled condition,” but the condition was not made public until recently.

The preferreds (NYSE: DKT) were down 11 cents to close at $25.08 with about 522,000 shares trading.

MetLife gains

MetLife’s $805 million of 5.625% series E non-cumulative preferred shares regained a spot at the top of secondary trading.

The preferreds (NYSE: METPrE) were up 16 cents to close at $25.46 with about 442,000 shares exchanged.

Energy Transfer up

Energy Transfer’s LP’s 7.375% series C fixed-to-floating rate cumulative redeemable perpetual preferred units gained.

The preferreds (NYSE: ETPPrC) were up 2 cents to $24.97 with about 399,000 in volume.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index was up 0.27% at market close.

The iShares US Preferred Stock ETF was up 7 cents to $37.62.

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