Morning Commentary: Preferreds steady ahead of Fed release; First Republic frees, assigned symbol

By Stephanie N. Rotondo

Phoenix, May 20 – The preferred stock market was treading water in early midweek trading as investors kept an eye toward the Federal Reserve’s latest meeting minutes.

The minutes from the central bank’s April meeting were slated to be released later in the day. The markets are hoping for more clues as to when interest rates might begin to go up.

The Wells Fargo Hybrid and Preferred Securities index was flat at mid-morning.

First Republic Bank’s new $100 million issue of 5.7% series F noncumulative perpetual preferreds – a deal priced Tuesday – was already assigned a temporary reporting symbol, according to a trader.

The symbol is “FREPP.”

The deal also freed to trade, the trader said.

He pegged the issue at $24.94 bid, $24.95 offered.

BofA Merrill Lynch, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC ran the books.

In the bank’s other listed preferreds, the 7% series E noncumulative preferreds (NYSE: FRCPE) were off 2 cents at $27.48 in early trades.

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