Morning Commentary: Preferred market quiet; Safe Bulkers flat; National General moves up

By Aleesia Forni

Virginia Beach, June 24 – The preferred market was subdued heading into Tuesday’s session, with no new issues expected to price on the day.

“It’s been pretty quiet today,” a source said early during the session.

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

Safe Bulkers Inc.’s $70 million offering of 8% series D cumulative redeemable perpetual preferreds, which priced on Tuesday, was quoted unchanged at $24.60 bid, $24.70 offered.

The bookrunners were Morgan Stanley & Co. LLC and UBS Securities LLC.

Safe Bulkers is an Athens, Greece-based marine drybulk transportation company.

In other recent deals, National General Holdings Corp.’s $55 million of 7.5% series A noncumulative preferreds were quoted at $24.80 bid, $24.90 offered early in the day.

Morgan Stanley and UBS Securities are the joint bookrunning managers for the deal that sold on Wednesday.

National General is a New York-based specialty personal lines insurance holding company.

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