Midday Commentary: Regions considers issuance; Triangle lists; Citigroup rises, Goldman slips

By Stephanie N. Rotondo

Phoenix, Oct. 23 - The preferred stock market saw values dwindling Tuesday, as concerns about Europe and disappointing third-quarter earnings pressured the broader markets.

No new issues were announced at the onset of the session, though Regions Financial Corp. did say in its third-quarter earnings release that it was considering entering the market, should conditions remain favorable. If the Birmingham, Ala.-based bank does launch a new deal, proceeds will likely be used to redeem its 8.875% trust preferreds (NYSE: RFPZ).

The issue was trading down a nickel at midday to $25.77.

In recent deals, Triangle Capital Corp.'s $70 million issue of 6. 375% $25-par senior notes due Dec. 15, 2022 officially listed on the New York Stock Exchange under the ticker symbol "TCCA."

The deal priced Oct. 16. Paper was trading at $24.89 as of midafternoon, down from $24.90 at the open.

Also, Citigroup Inc.'s new $1.5 billion of 5.95% $1,000-par fixed-to-floating rate noncumulative preferreds - a deal that priced late Monday - was seen at 101.625, while the Goldman Sachs Group Inc.'s recently priced 5.95% series I noncumulative perpetual preferreds continued to weaken, falling under par to $24.91 bid, $24.97 offered, according to a trader.

Meanwhile, a trader said there was a story out that Ally Financial Inc. was preparing itself to be bought outright.

"If that happens, the preferreds would jump," the trader said.

Ally's 8.125% fixed-to-floating rate trust preferreds (NYSE: ALLYPA) were up 8 cents at midday to $25.88, as the 8.5% series A fixed-to-floating rate perpetual preferreds (NYSE: ALLYPB) held in at $25.15.

Ally has reportedly inked a deal with Royal Bank of Canada, in which RBC will purchase Ally's Canadian operations.

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