Jobs number boosts preferreds, though market muted; recent deals improve; financials gain

By Stephanie N. Rotondo

Phoenix, June 7 - A new jobs number that was "just right" helped the preferred stock market firm on Friday, though "nothing is going on in size," a trader said.

The market hit its peak about midday, a source said after the bell. At its highest point, the market was up 48 basis points, he said, but faded to end the day up 24 bps, or about 6 cents on average for $25-par paper.

Recently priced deals were doing a little better than they were earlier in the week. AmTrust Financial Services Inc.'s $115 million of 6.75% series A noncumulative perpetual preferreds - a deal that came Monday - was offered at $24.50 at midday.

"It's been trading around," a trader said, noting that paper had traded at $24.55 earlier in the session. He guessed that the bid for paper was around $24.25, which would put trades around $24.35, he said.

First PacTrust Bancorp Inc.'s $35 million of 8% series C noncumulative perpetual preferreds - which priced Wednesday - were meantime seen at $24.70 bid, par offered.

Also from Wednesday, Allstate Corp.'s $250 million of 5.625% series A noncumulative perpetual preferreds were pegged at $24.85 bid at midday.

"That seemed to have been received pretty well during a soft market," a trader said.

"It was all over the place," a market source said after the market closed for the week. The paper closed at $24.90, and the volume weighted average price was $24.91.

Financials busy, mixed

Away from agency preferreds, financials were once again dominating overall trading.

Citigroup Inc.'s 7.875% fixed-to-floating rate trust preferreds (NYSE: CPN) put on a dime to close at $27.81. The 6% trust preferreds (NYSE: CPS) meantime dropped 6 cents to $25.15.

Meanwhile, Goldman Sachs Group Inc.'s 5.5% series J fixed-to-floating rate noncumulative preferreds (NYSE: GSPJ) earned a dime, finishing at $25.10. And, Ally Financial Inc.'s 8.5% series A fixed-to-floating rate perpetual preferreds (NYSE: ALLYPB) dipped 3 cents to $26.28.

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