Morning Commentary: New issues expected in coming week; National General underperforming

By Stephanie N. Rotondo

Phoenix, June 20 – The preferred stock market was subdued early Friday, with one trader attributing the lack of activity to the summer doldrums.

Still, he said he “heard there will be some more new issues next week, so that’s good.”

The trader said there could be up to three deals in the coming week and while he did not have any specific names, there was one sector he did not expect to see.

“With National General Holdings Corp. not doing so well, I’d be shocked if we saw another insurance deal,” he said.

The New York-based company launched an offering of series A noncumulative perpetual preferreds on Monday. The deal was originally expected to be $100 million, but only $55 million of the preferreds priced on Wednesday.

The issue came at 7.5%, at the tight end of talk.

The trader saw the issue at $24.75 on Thursday, down from a $24.65 to $24.75 context previously.

The trader also noted that the preferreds had been assigned a temporary trading symbol of “NTGNP.”

The secondary market was near flat as of mid-morning, with the Wells Fargo Hybrid and Preferred Securities index up 1 basis point.

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