Midday Commentary: Preferreds slow to start new week; Public Storage launches new cumulative issue

By Stephanie N. Rotondo

Phoenix, March 4 - A trader said the preferred stock market was on the quiet side as the week got underway.

"I thought we'd come back to a crazy market with this sequestration," he said. "But it's quiet."

However, he noted that several calls had been announced recently - "higher coupon stuff, which was to be expected" - which may mean a busy new issue calendar coming up.

Public Storage brought a new deal on Monday, announcing an offering of series X cumulative preferreds.

Price talk is around 5.25%, a trader said.

"They'll probably tighten that up," he said, seeing the issue trading around $24.75 in the midday gray market.

"It doesn't sound like they are going to have a selling group," he added.

Proceeds from the deal will be used for general corporate purposes.

Meanwhile, Pitney Bowes Inc.'s recent $375 million sale of 6.7% $25-par notes due 2043 was pegged at $24.85 bid, par offered.

The issue priced on Tuesday.

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