Midday Commentary: Preferreds continue to rise; First Republic's new 7% noncumulatives free up

By Stephanie N. Rotondo

Phoenix, Oct. 22 - The preferred stock market was seeing "light volume" on Tuesday but was "creeping up" nonetheless, according to a trader.

"Everything has caught a bid and there's a lot of green on the board," he added, noting that the market has been performing better since the government averted hitting the debt ceiling. "Today's economic numbers are driving the [Treasury] bond market up, so that helps as well."

The Wells Fargo Hybrid and Preferred Securities index was up 49 basis points as of midday.

The trader reported that First Republic Bank's $200 million of 7% series E noncumulative perpetual preferreds - a deal that priced Monday - had freed to trade as of early Tuesday.

He quoted the issue at $25.05 bid, $25.10 offered.

However, the trader also remarked that he was not hearing of any other deals coming this week.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.