Preferred stocks edge lower in quiet session; August’s new issues stay busy; Ally slips

By Stephanie N. Rotondo

Seattle, Aug. 31 – The preferred stock market fell off in late-day trading after trading up for most of the day.

The Wells Fargo Hybrid and Preferred Securities index finished the midweek session down 2 basis points. The index was up 7 bps at mid-morning.

Despite the late-day turn into the red, investors continued to push up recent deals from Qwest Corp., Legg Mason Global Asset Management, Entergy Arkansas Inc. and Entergy Louisiana LLC.

Qwest’s $977.5 million of 6.5% $25-par notes due 2026 (NYSE: CTBB) – consisting of $850 million sold on Aug. 11 and a fully exercised greenshoe of $127.5 million – rose 11 cents to $26.00 a share. Legg Mason‘s $500 million of 5.45% $25-par junior subordinated notes due Sept. 15, 2056 (NYSE: LMHB) – priced Aug. 3 – were meantime a penny higher at $25.16.

Entergy Arkansas’ $410 million of 4.875% $25-par first mortgage bonds due Sept. 1, 2066 – a deal from Aug. 9 – were a penny better at $25.01. Entergy Louisiana’s $270 million of 4.875% $25-par collateral trust mortgage bonds due 2066 (NYSE: ELC) meantime traded at par, a gain of 3 cents on the day.

Away from newer issues, Ally Financial Inc.’s 8.125% series 2 fixed-to-floating rate trust preferreds (NYSE: ALLYPA) were active but weaker in line with the day.

The preferreds dipped 2 cents to $25.26.

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