Preferreds tick higher to end week; Allstate’s issue frees up; Goldman, Morgan Stanley busy

By Stephanie N. Rotondo

Phoenix, June 6 – On Friday, preferred stocks continued to erase losses incurred earlier in the week.

The Wells Fargo Hybrid and Preferred Securities index put on 30 basis points as of early Friday trading. The index came in a bit by the bell but still closed up 24 bps.

“We’ve had a little bit of a bounce back in the secondary, but nothing crazy,” a trader said.

As for recent deals, Allstate Corp.’s $250 million of 6.25% series F fixed-rate noncumulative perpetual preferred stock, an offering done via Incapital LLC’s Leopards program, was trading “right around par” as of mid-morning, according to the trader.

The issue freed to trade early in the day.

After the market closed, a market source said the new deal closed at par bid.

The new issue came Thursday. Pricing was originally slated for June 9, but talk was that the deal went rather well and so the books closed ahead of schedule.

Meanwhile, Resource Capital Corp.’s $110 million of 8.625% series C fixed-to-floating-rate cumulative redeemable preferreds were quoted at $24.90 bid, $24.95 offered.

“They’re hanging right around that area,” a trader said.

That deal priced Tuesday.

Goldman, Morgan Stanley active

Despite the firmer tone of the market, liquidity was on the lighter side away from a couple of issues.

Goldman Sachs Group, Inc.’s 5.5% series J fixed-to-floating-rate noncumulative preferred stock (NYSE: GSPJ) gained 25 cents, or 1.05%, to close at $24.13. About 1.41 million shares were exchanged.

Morgan Stanley’s 6.875% series F fixed-to-floating-rate noncumulative preferreds (NYSE: MSPF) meantime saw even more activity, as about 1.5 million shares traded. The preferreds finished the session up 17 cents at $27.35.

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