Market quiet ahead of holiday but firms; American Homes prices new deal; banks higher

By Stephanie N. Rotondo

Phoenix, Dec. 20 - A preferred stock trader said Friday's session was subdued as players prepare for the upcoming holidays.

"It's just deadly quiet," he said, speculating that it would stay that way through the end of the year.

"Volume was kind of light-ish," another market source said. However, the source added that the market finished the week with a firm tone.

"There was kind of a surge; then it faded right at the close," he noted, though the Wells Fargo Hybrid and Preferred Securities index did end up 16 basis points.

"It was definitely stronger than it had been," he said.

Investors were not showing much interest in a new issue from American Homes 4 Rent, a trader said. The company said Friday that it had priced $100 million of 5% series B participating preferred shares.

Raymond James & Associates Inc., Jefferies Inc. and Citigroup Global Markets Inc. are the joint bookrunners.

The trader said he saw the issue offered at $24.60 early in the day.

Proceeds will be used to acquire and renovate single-family properties, to repay borrowings under a credit facility and for general business purposes.

American Homes is an Agoura Hills, Calif.-based real estate investment trust.

Banks busy, better

Among the day's most actively traded issues, JPMorgan Chase & Co.'s 5.5% series O noncumulative preferreds (NYSE: JPMPD) put on 3 cents to close at $20.47.

Zions Bancorporation's 6.3% series G fixed-to-floating rate noncumulative preferreds (NYSE: ZBPG) meantime earned 6 cents, ending at $23.36.

Two Wells Fargo & Co. issues were active, the 5.85% series Q fixed-to-floating rate noncumulative preferreds (NYSE: WFCPQ) and the 6.625% series R fixed-to-floating rate noncumulative preferreds (NYSE: WFCPR), an issue that priced Dec. 11 and listed this week. The Qs finished the session at $23.33, up a penny, while the Rs rose 7 cents to $25.30.

And, Goldman Sachs & Co.'s 5.5% series J fixed-to-floating rate noncumulative preferreds (NYSE: GSPJ) popped 13 cents, closing at $22.46.

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