Midday Commentary: Preferred market sell-off continues; Allstate plans new deal; AmTrust frees up

By Stephanie N. Rotondo

Phoenix, June 5 - The preferred stock market was still under pressure at midweek.

"The whole market is just coming in like crazy," a trader said. Still, he said the recent sell-off was to be expected.

"We've had such a strong year," he said. "The market was so tight. Any type of fear or disruption and people just start dumping."

The primary market saw a new deal from Allstate Corp. announced. The company said it was selling at least $200 million of noncumulative preferreds, with price talk between 5.625% and 5.75%.

"It's doing well," a trader said. "Retail is putting it away."

The paper was trading at $24.55 in the midday gray market.

Meanwhile, AmTrust Financial Services Inc.'s new $115 million of 6.75% series A noncumulative perpetual preferreds freed up early in the session. The shares were seen at $24.20 at midday.

The deal priced late Monday.

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