Midday Commentary: Aegon capital securities go ex-dividend; State Street's new issue lists on NYSE

By Stephanie N. Rotondo

Phoenix, Aug. 29 - The secondary preferred market continued to absorb the recent onslaught of new issues on Wednesday.

"There's no signs of any new issues [this week]," a trader said. "I think it will be quiet the rest of the week."

He also noted that several issues went ex-dividend on Wednesday, though that didn't do much to affect volume or prices.

Aegon NV's 7.25% perpetual capital securities (NYSE: AEF) were one of the ex-dividend issues. They fell 7 cents to $25.08 at midday. The dividend is payable on Sept. 1.

In recent deals, State Street Corp.'s $500 million of 5.25% series C noncumulative perpetual preferreds listed on the New York Stock Exchange, as expected. The deal priced Aug. 14.

At midday, the issue was trading down 6 cents from the previous close at $24.98. Earlier in the session, the paper had hit highs around $25.04.

"It's not really doing much," a trader said.

Meanwhile, JPMorgan Chase & Co.'s $1.1 billion of 5.5% series O noncumulative perpetual preferreds fell back down below par after breaching that level on Tuesday.

A trader pegged the issue, which priced Aug. 20, just below par. There was still no word on when that deal will list on the NYSE, though it is expected to be soon.

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