Midday Commentary: Holiday, vacations limit preferred stock action; JPMorgan issue around par

By Stephanie N. Rotondo

Phoenix, Aug. 30 - Activity in the preferred stock market continued to dwindle Thursday.

Many desks have been empty all week as market players get in their last vacations before school resumes. Others were looking to take advantage of the upcoming Labor Day holiday.

A trader said that even the declining common stock market was having little effect on preferreds.

"Our stuff is still pretty much tied to the bond market," he said, which was up slightly.

The new issue calendar also remained silent, as it has throughout the current week. But the past few months have been busy with new deals, most of which have already listed on their respective exchanges.

However, JPMorgan Chase & Co.'s $1.1 billion of 5.5% series O noncumulative preferreds - a deal that priced Aug. 20 - is the only remaining holdout.

"They still haven't listed [the securities]," a trader said, opining that the issue could hit the New York Stock Exchange Friday or Tuesday, after the Monday holiday.

He quoted the preferreds at $24.92 bid, $25.05 offered.

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