Morning Commentary: Preferreds hold in as week comes to an end; Northern Trust still not listed

By Stephanie N. Rotondo

Phoenix, Aug. 8 – Preferred stocks were holding steady on Friday as a U.S. military airstrike against ISIS in Iraq sent Treasuries lower, a trader said.

The trader speculated that recent news – both economic and geopolitical – indicated that interest rates will be held down for the near term, which was “taking preferreds higher.”

The Wells Fargo Hybrid and Preferred Securities index was flat a mid-morning.

But with all the geopolitical news and no shortage of empty desks, volume was on the lighter side.

“There’s so many people out,” the trader said. “It’s the last week of vacation before back to school.”

Northern Trust Corp.’s 5.85% series C noncumulative perpetual preferreds – a deal that priced July 29 – has still not listed, the trader remarked Friday.

“It should be any day,” he said. “I had assumed it would have been by now.”

He saw the $400 million issue trading in a range of $24.35 to $24.50 early in the session.

Though the calendar has been on the light side this week, the trader said that could change next week.

“There may be a new deal on Monday,” he said, though he declined to give specifics.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.