Morning Commentary: Preferreds holding up; RAIT’s new 7.125% $25-par notes steady, not yet free

By Stephanie N. Rotondo

Phoenix, Aug. 12 – Preferred stocks continued to tick up in early Tuesday trading.

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

RAIT Financial Trust’s new $70 million issue of 7.125% $25-par senior notes due 2019, however, were holding where they had been at Monday’s close.

A trader quoted the issue in a $24.60 to $24.70 range. He noted that the deal had yet to free from the syndicate.

The new issue priced Monday, coming upsized from $35 million. Initial price talk was around 7.25% but was then revised to 7.125%.

Deutsche Bank Securities Inc., Barclays, Keefe Bruyette & Woods and Credit Suisse Securities (USA) LLC were the joint bookrunners on the non-rated deal.

Still, liquidity remained thin as investors kept an eye on geopolitics and tried to take in the last few weeks of summer before back-to-school season.

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