Morning Commentary: Preferreds look to recover losses; U.S. Cellular notes not yet free to trade

By Stephanie N. Rotondo

Phoenix, Dec. 2 – After getting hammered in the previous session, preferred stocks were staging a modest comeback on Tuesday.

The Wells Fargo Hybrid and Preferred Securities index was up 2 basis points at mid-morning. On Monday, the index closed down 28 bps, or about 7 cents on average for $25-par issues.

United States Cellular Corp.’s $275 million of 7.25% senior notes due 2063 had yet to free from the syndicate in early trading, according to a trader.

The $25-par deal came Monday, upsized from $200 million and at the tight end of talk.

BofA Merrill Lynch, Morgan Stanley & Co. LLC, RBC Capital Markets, UBS Securities LLC and Wells Fargo Securities LLC ran the books.

The trader saw the issue trading in a $24.58 to $24.60 context.

Meanwhile, Public Storage’s $175 million of 5.875% series A cumulative perpetual preferreds were holding on to the previous day’s gains.

A trader pegged the paper at $24.90, unchanged from Monday’s close. The securities had risen 10 cents during Monday trading.

The deal priced Nov. 20.

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