Preferreds steady despite jobs data; Allstate paper lists on NYSE; CHS, Vanguard improve

By Stephanie N. Rotondo

Phoenix, March 7 - The preferred stock market was holding its ground Friday even as new jobs data showed that unemployment went back up.

The Wells Fargo Hybrid and Preferred Securities index was up 1 basis point at midday. The index was holding at that level by day's end.

The Allstate Corp.'s $650 million issue of 6.625% series E fixed-rate noncumulative preferreds was admitted for trading on the New York Stock Exchange, as was expected.

The deal priced Feb. 24. The ticker symbol is "ALLPE."

Paper was trading at $24.89 versus the opening levels of $24.90. However, the issue had traded as high as $24.93 early in the session.

In the late afternoon, the issue traded even higher, hitting $25.15. However, the preferreds ended the day at their lows, closing at $24.80.

Meanwhile, CHS Inc.'s $365.22 million of 7.1% series 2, class B cumulative redeemable preferreds were hanging around $25.50 in midday trading. The issue was quite active on the day, as a market source said after the close that about 621,000 shares were exchanged.

He called the shares up 12 cents at $25.62.

Vanguard Natural Resources LLC's $175 million of 7.625% series B cumulative redeemable preferred stock units were meantime "moving up slightly" at midday to $24.70 bid, $24.75 offered, according to a trader.

The units finished up a penny at $24.79, according to a source. Well over 2 million were traded.

JPMorgan, US Bank get busy

A portfolio rebalancing might have accounted for massive volume in JPMorgan Chase & Co.'s 6.7% series T noncumulative preferreds (NYSE: JPMPB) and U.S. Bancorp's series B floating-rate noncumulative perpetual preferreds (NYSE: USBPH).

The JPMorgan issue ended the day off a penny at $25.01 on trades of over 3.78 million shares. The U.S. Bank issue was down 3 cents to $20.53.

About 2.04 million shares traded.

Though there was no fresh news to act as a catalyst, one market source speculated that so-called "crossover buyers" - that is, investors who typically focus on high-yield securities - were coming in, given that "preferreds look a lot more yield-y."

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