Morning Commentary: JPMorgan brings upsized $25-par offering; Diana’s $25-par notes list on NYSE

By Stephanie N. Rotondo

Phoenix, May 29 – The preferred stock market was edging up early Friday, even as the federal government cut its gross domestic product estimate.

The estimate was revised to minus 0.7% per year from the 0.2% gain forecast last month.

A trader said the data was “not supporting an interest rate increase in September.”

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

Late Thursday, JPMorgan Chase & Co. priced $1.3 billion of 6.1% series AA noncumulative perpetual preferreds, a $25-par issue.

Initial price talk was in the 6.25% area, and the company originally planned to sell $400 million of the preferreds.

J.P. Morgan Securities LLC ran the books.

Come Friday trading, a trader pegged the issue at $24.75.

The trader added that the deal was expected to free from the syndicate on Monday.

Meanwhile, Diana Shipping Inc.’s $55 million of 8.5% $25-par notes due 2020 began trading on the New York Stock Exchange on Friday.

The issue came May 20 via Stifel Nicolaus & Co. Inc., Deutsche Bank Securities Inc., Janney Montgomery Scott LLC, BB&T Capital Markets and Wunderlich Securities Inc. The new ticker symbol is “DSXN.”

Paper was trading at $25.20 early in the session.

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