Midday Commentary: New preferred issues holding in as secondary trading quiets down

By Stephanie N. Rotondo

Phoenix, Sept. 26 - Recent new issues were "about the same" as of midday trading on Thursday, according to one preferred stock market source.

Tsakos Energy Navigation Ltd.'s planned offering of series C cumulative redeemable perpetual preferred stock - a deal that was first announced on Wednesday - had yet to price, the source said.

"It's going kind of slow," he said of the deal.

Morgan Stanley & Co. Inc.'s $750 million of 7.125% series E fixed-to-floating rate noncumulative preferreds were meantime seen at $25.15 bid, $25.25 offered, as were Citigroup Inc.'s $900 million of 7.125% fixed-to-floating series J noncumulative perpetual preferred stock.

The Morgan Stanley issue came on Tuesday, and Citigroup priced on Sept. 12.

Also, the Allstate Corp.'s $350 million of 6.75% series C fixed-rate noncumulative preferreds were pegged at $24.85 bid, $24.92 offered.

That deal came on Monday.

From last week's business, CHS Inc.'s $250 million issue of series 1 class B cumulative redeemable preferreds was quoted at $26.00 bid, $26.35 offered.

Away from recent new issues, trading was on the quiet side, the source said. However, the Wells Fargo Hybrid and Preferred Securities index was up 14 basis points as of midday.

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