Morning Commentary: KeyCorp’s new preferred frees to trade, tops par; DTE listing expected

By Stephanie N. Rotondo

Seattle, Dec. 6 – The preferred stock market was inching higher early Tuesday after starting the week with a slightly softer tone.

The Wells Fargo Hybrid and Preferred Securities index was up 18 basis points at mid-morning.

A trader said KeyCorp’s $500 million of 6.125% series E fixed-to-floating rate noncumulative preferreds – a deal priced Monday – freed to trade in early dealings, shooting above par to a $25.05 to $25.10 context.

That compared to $24.93 at Monday’s close.

Price talk was in the 6.25% area. The deal was upsized from $250 million.

Meanwhile, DTE Energy Co.’s $280 million of 6% $25-par 2016 series F junior subordinated debentures due 2076 were seen at $24.30 bid, $24.50 offered.

A trader said that deal – which came Nov. 28 – would be admitted to the New York Stock Exchange “probably tomorrow.”

The symbol is expected to be “DTY.”

Among already-listed issues, Vanguard Natural Resources LLC’s 7.625% series B cumulative redeemable preferred units (Nasdaq: VNRBP) were retreating as crude oil prices waned.

The units were off 30 cents, or 7.5%, at $3.70 early in the session.

For its part, oil was down about 2.5% at mid-morning as OPEC and Russia reported increased output ahead of a planned production cut slated to go into effect at the first of the year.

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