Morning Commentary: Preferreds steady ahead of long weekend; Eagle Point issue lists on NYSE

By Stephanie N. Rotondo

Phoenix, May 22 – The preferred stock market was “pretty flat” early Friday as desks started to empty ahead of the Memorial Day holiday, according to a trader.

The Wells Fargo Hybrid and Preferred Securities Index was up 3 basis points at mid-morning.

The trader noted that the latest Consumer Price Index reading came is “as expected” at 0.3%.

Analysts polled by Bloomberg had forecast a gain of 0.2%.

Among the week’s new issues, a trader saw First Republic Bank’s $100 million of 5.7% series F noncumulative perpetual preferreds – a deal priced Tuesday – at $24.90.

That is about where the issue has been hovering since pricing.

Diana Shipping Inc.’s $55 million of 8.5% $25-par senior unsecured notes due 2020 were meantime pegged at $24.70 bid, $24.77 offered.

That issue came Wednesday and freed to trade on Thursday.

From the previous week’s business, Eagle Point Credit Co. Inc.’s $40 million of 7.75% series A term preferred stock due 2020 listed on the New York Stock Exchange on Friday.

The ticker symbol is “ECCA.” The deal priced May 13.

The paper was trading at $25.17 at mid-morning, versus opening levels of $24.95. The preferreds had traded as high as $25.25 early in the session.

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