Midday Commentary: Public Storage proposes new cumulative deal; Allstate's new issue soaring

By Stephanie N. Rotondo

Phoenix, Jan. 7 - New issues were starting to line up in the preferred stock market on Monday.

Public Storage announced an offering of series W cumulative redeemable perpetual preferreds, with price talk originally around 5.25% to 5.375%. The talk was then revised to the "5.25% area," according to a trader.

"It's doing pretty well," he said, seeing paper trade around $24.70 in the gray market as of midday. Public Storage issues typically tend to do well in the primary.

He commented that the deal - which is expected to be at least $150 million - would likely price later in the day.

Meanwhile, Allstate Corp.'s 5.1% fixed-to-floating rate $25-par subordinated debentures due 2053 - a deal that priced late Thursday - was continuing to fly high, a trader said.

He quoted the issue at $25.75 bid, $25.90 offered.

"Someone must be short," he said.

Allstate's was the first new issue of 2013.

The primary arena is expected to get busy in the near term, following the trend of 2012. A trader said that several real estate investment trusts have been filing shelf registrations, so that space in particular could be active in the new issue market.

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