Morning Commentary: Market remains strong as week closes out; AmTrust’s new issue steady

By Stephanie N. Rotondo

Phoenix, June 27 – The preferred stock market was firm again Friday, though a trader was lamenting a lack of activity.

“It’s going to be a quiet Friday,” he said.

The Wells Fargo Hybrid and Preferred Securities index was up 8 basis points at mid-morning.

AmTrust Financial Services Inc.’s $100 million of 7.25% series B noncumulative preferreds were seen hanging around $24.65 bid, $24.70 offered early in the session.

The deal priced Wednesday and freed to trade on Thursday.

Meanwhile, Commerce Bancshares Inc.’s $150 million of 6% series B noncumulative perpetual preferred stock and the Federal Agricultural Mortgage Corp.’s $75 million of 6% series C fixed-to-floating rate noncumulative preferred stock began trading on their respective exchanges.

The Commerce issue hit the Nasdaq, trading under the symbol “CBSHP.” The Farmer Mac shares were trading on the New York Stock Exchange under the symbol “AGMPC.”

The Commerce preferreds were trading at $25.14 at mid-morning, versus a par opening level. Farmer Mac was meantime unchanged at $25.05.

Commerce priced June 12 via Morgan Stanley, BofA Merrill Lynch and JPMorgan. BofA Merrill Lynch led the Farmer Mac deal, which came June 17.

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