Preferred stock trader predicts active September calendar; Northern Trust yet to list

By Stephanie N. Rotondo

Phoenix, Aug. 28 – A preferred stock trader was already looking to the coming week on Thursday, opining that the primary could pick up.

“I’d be shocked if we didn’t see a ton of deals in September,” he said, pointing to continuing low interest rates. He also noted that banks are “getting these settlements behind them,” which could encourage them to come back to the marketplace.

But the current week remained on the quiet side, even as long Treasury bonds gained “almost a point and then trickled back,” a trader said.

The Treasury debt was moving around on fresh unemployment and pending home sales numbers.

As for the Wells Fargo Hybrid and Preferred Securities index, it was volatile in early trading, falling 1 basis point by mid-morning. But shortly before lunchtime, the index began ticking higher, eventually ending up 5 bps on the day.

Northern Trust Corp.’s $400 million of 5.85% series C noncumulative perpetual preferreds were “moving up,” a trader said, quoting the issue at $24.80 bid, $24.85 offered.

At the end of the day, the preferreds were 8 cents better at $24.83. The issue fell to a low of $24.70 and hit as high as $24.88.

The deal priced July 29 and still has yet to list on the Nasdaq Global Select Market.

The expected ticker symbol is “NTRSP.” Morgan Stanley & Co. LLC, BofA Merrill Lynch and Wells Fargo Securities LLC ran the books.

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