Market turns higher as Fed taper seen delayed and investors search for yield; Zions firms

By Stephanie N. Rotondo

Phoenix, Aug. 22 - The preferred stock market was getting a "bounce," a trader said Thursday.

"The jobs numbers were a non-event," he noted, as the figure came in line with expectations. He opined that the gains seen "across the board" were due to the Federal Reserve's statement on Wednesday that indicated the central bank was not planning to taper its stimulus program anytime soon.

"It just shows that the preferred market was oversold," he said, pointing to the day's gains.

The trader also commented on a Bloomberg story out early Thursday that said investors were "having a tough time replacing yield because of all the structured notes that have been called.

"That could push this market higher," he said of investors' search for yield.

Around midday, trading on the Nasdaq got halted due to a technical glitch. Trading resumed late in the day, however, and did not seem to have much of an effect on the preferred space.

The Wells Fargo Hybrid and Preferred Securities index closed up 84 basis points on the day.

As for the day's trading activity, Zions Bancorporation's 9.5% series C noncumulative preferreds (NYSE: ZBPC) were active, rising a penny to $25.59 at midday.

At the close, the issue was up 2 cents at $25.60.

On Aug. 15, the Salt Lake City-based bank said it was redeeming the entire $799.5 million issue on Sept. 15.

The redemption price is par plus approximately 61 cents.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.