Midday Commentary: Preferreds firm ahead of Fed meeting minutes; Citigroup admitted to NYSE

By Stephanie N. Rotondo

Phoenix, Feb. 19 - Preferred stocks were moving higher Wednesday ahead of the release of minutes from the latest Federal Reserve meeting.

The Wells Fargo Hybrid and Preferred Securities index was up 24 basis points shortly before noon ET.

Citigroup Inc.'s $480 million of 6.875% series L noncumulative perpetual preferreds listed on the New York Stock Exchange Wednesday.

The deal priced Feb. 5. The ticker symbol is "CPL."

The issue was trading at $24.90 around midday, steady from the previous day's close. In the meantime, Citi's 6.875% series K fixed-to-floating rate noncumulative preferreds (NYSE: CPK) were trading neck and neck with the recent issue, rising 2 cents to $25.78 as of midday.

Among other recent deals, Verizon Communications Inc.'s $500 million of 5.9% $25-par notes due 2054 "still are not listed," a trader said.

The deal came Jan. 30.

However, the trader said the paper "turned up a little bit," quoting the notes at $24.90 bid, $24.95 offered.

And, there was still no word on CHS Inc.'s planned offering of up to $250 million series 2, class B cumulative redeemable preferreds. The agricultural company said last week that it had registered the shares, which will be sold via BofA Merrill Lynch and Wells Fargo Securities LLC.

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