Wells Fargo new issue retreats a touch; S&P index rebalance lifts Goldman, CYS, US Bancorp

By Stephanie N. Rotondo

Phoenix, July 19 - Preferred stock market activity was winding down a bit as the week came to an end, a trader said Friday.

Even Wells Fargo & Co.'s new $1.5 billion issue of 5.85% series Q class A fixed-to-floating rate noncumulative preferreds was not trading as much as it had been since pricing on Monday, according to the trader.

He said the issue was holding in a $25.25 to $25.35 context. At the close, another source saw the issue last trading at $25.20.

Still, the market was maintaining its firm tone as long Treasury bonds ticked up.

Another market source said that the market was mostly flat for the day.

After the bell, the S&P Preferred Stock Index Fund was slated to rebalance. As such, several issues that were being added to that list were trading actively.

Goldman Sachs & Co.'s 5.5% series J fixed-to-floating rate noncumulative perpetual preferreds (NYSE: GSPJ) jumped 27 cents, or 1.09%, to $25.01, while CYS Investments Inc.'s 7.5% series B cumulative redeemable preferreds (NYSE: CYSPB) rose 11 cents to $23.17.

US Bancorp's 5.15% series H noncumulative perpetual preferreds (NYSE: USBPO) closed up 21 cents at $23.89.

All told, 26 new securities were added to the index. Seven other issues were dropped.

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