Midday Commentary: Market awaits fiscal cliff deal; SunTrust's new 5.875% preferreds gain

By Stephanie N. Rotondo

Phoenix, Dec. 17 - The preferred stock market had a case of the Mondays - or perhaps the "fiscal cliffs" - according to a trader.

"It's very quiet across the board," the trader said. He remarked that the market "could be taking a breather or cleaning up," though he also noted that the ongoing fiscal cliff talks were likely playing a role.

"People are wondering how it will affect dividends and taxation," he said.

After seeing at least one deal per day in the previous week, no new issues were announced on Monday. It is expected that the primary arena will nearly grind to a halt until the new year.

But in recent deals, SunTrust Banks Inc.'s $450 million of 5.875% series E noncumulative perpetual preferreds "moved up a little bit," a trader said, seeing a $24.90 bid, par offered market at midday.

That issue priced Thursday and freed to trade on Friday.

Meanwhile, Seaspan Corp.'s $67.5 million of 7.95% series D cumulative redeemable preferreds - a deal that came Dec. 6 - were pegged at $24.80 bid, $24.87.

On Friday, the Hong Kong-based containership company said the deal's greenshoe had been fully exercised, bringing total issuance up to $77.6 million.

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