Morning Commentary: Preferred stock trading limited ahead of holiday weekend; Regions higher

By Stephanie N. Rotondo

Phoenix, Aug. 29 – It was a quiet Friday for preferred stocks, as many market players were absent due to the approaching three-day Labor Day weekend.

“Nobody is really making markets in anything,” a trader said early in the session. He said it was typical given that it was also the last week of summer, adding that this year’s summer season was “slower than usual” in the marketplace.

“There’s just no volatility, in any product,” he said.

The Wells Fargo Hybrid and Preferred Securities index was up 2 basis points at mid-morning.

Regions Financial Corp.’s 6.375% series B fixed-to-floating rate noncumulative perpetual preferreds (NYSE: RFPB) were firm as the day began, rising 7 cents to $25.39.

Over 80,000 shares had been exchanged as of mid-morning, making it one of the day’s most active issues thus far.

The series Bs and the 6.375% series A noncumulative perpetual preferreds (NYSE: RFPA) went ex-dividend on Wednesday. Holders of the preferreds will receive 39.84 cents per share, payable Sept. 15.

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