Morning Commentary: JPMorgan preferreds rise; NuStar weak ahead of earnings; Fannie, Freddie firm

By Stephanie N. Rotondo

Phoenix, July 23 – A new preferred stock issue from JPMorgan Chase & Co. was moving up on Thursday, though the deal had not yet freed to trade, according to a trader.

The $1.1 billion issue of 6.15% series BB noncumulative preferreds – a deal that came Wednesday upsized from $400 million – was pegged at $24.80.

The J.P. Morgan Securities LLC-led deal was improving even as the market overall remained soft.

The Wells Fargo Hybrid and Preferred Securities index was off 7 basis points at mid-morning.

NuStar Logistics LP’s 7.625% $25-par fixed-to-floating rate subordinated notes due 2043 (Nasdaq: NSS) was following the day’s trend, slipping 7 cents to $26.89 in early trading. As of mid-morning, over 554,000 shares had traded.

The firm’s parent company, NuStar Energy LP, is slated to release earnings on Friday.

Meanwhile, Fannie Mae and Freddie Mac preferreds continued to climb up in the wake of news regarding a recent court ruling that will force the federal government to turn over more than 10,000 documents related to the decision to place the GSEs into conservatorship.

That decision is believed to be a boon for shareholders.

Fannie’s 8.25% series S fixed-to-floating rate noncumulative preferreds (OTCBB: FNMAS) rose 3 cents to $4.47. Freddie’s 8.375% fixed-to-floating rate noncumulative perpetual preferreds (OTCBB: FMCKJ) were up 2 cents, also at $4.47.

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