Preferred stocks drift down in late trading; Wells Fargo preferreds could list ‘any day’

By Stephanie N. Rotondo

Phoenix, July 22 – Preferred stocks ticked higher for much of Tuesday as “consumer prices were in line,” a trader said, though late selling erased the gains.

Still, there was “no sign of any new deals,” he said. “It’s just really quiet out there.”

Another market source remarked that there were “no new issues, only rumors.”

The Wells Fargo Hybrid and Preferred Securities index was up 7 basis points at mid-morning but ended down 2 bps to 3 bps. The index had been up for most of the day but drifted down in the final minutes of trading.

Wells Fargo & Co.’s $800 million of 6% series T class A noncumulative perpetual preferreds – a deal that came July 14 – should hit the New York Stock Exchange “any day,” according to a trader.

The preferreds have been trading under a temporary symbol, “WLRGP.”

Since pricing – and coming upsized from $250 million – the issue has yet to reach and hold at levels of par or over. The paper ended the session at $24.89, up 6 cents from the previous day’s close. Early in the day, the preferreds were trading at $24.83, which compared to opening level of $24.87.

Last week, the bank said it had exercised its $100 million greenshoe, increasing total issuance from $700 million.

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