Preferred Stock Midday Commentary: Market seeks direction from Europe; Public Storage plans new deal

By Stephanie N. Rotondo

Phoenix, June 5 - The preferred stock market was "looking for direction out of Europe again," a trader said midday Tuesday.

Alas, "that's not happening," he said.

Still, foreign banks "moved up," the trader said, attributing the gains to the fact that most foreign issuers have "been beaten up in the last week and a half."

In the primary arena, Public Storage - a regular issuer in the preferred stock market - announced plans for a sale of series U cumulative perpetual preferreds.

Price talk is 5.625% to 5.75%, a trader said.

The trader commented that the yet-to-be priced deal was "doing relatively well" in the gray market, trading around $24.60.

"For that coupon, I'm surprised it was trading at all," he said.

Proceeds from the offering will be used, in part, to redeem the company's 7% series N cumulative preferred shares.

That issue (NYSE: PSAPN) was down a penny in midday trading at $25.42. The securities will be called on July 2.

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