Morning Commentary: JPMorgan preferreds trade in ‘good sized blocks’; market softens

By Christine Van Dusen

Atlanta, Feb. 6 – The new issue of preferred stock from JPMorgan Chase & Co. received some attention in trading on Friday morning as oil prices climbed and after the United States released better-than-expected jobs numbers for January.

“The market is a hair softer, with the good jobs number,” a trader said.

The $1.2 billion 6.125% series Y noncumulative perpetual preferreds, upsized from $400 million, was seen at about $24.90 on Friday morning, the trader said.

The issue was “fairly active, trading in good sized blocks,” he said.

Shortly before the deal priced on Thursday, the issue was quoted at $24.83 bid, $24.85 offered. At mid-morning that day, he saw an early gray market quote of $24.70 bid, $24.77 offered, adding that the paper had been around $24.80 prior to the price talk revision.

Among existing JPMorgan issues, the 5.5% series O noncumulative preferreds (NYSE: JPMPD) were seen Friday at $24.21 after closing on Thursday at $24.13.

The company’s 6.3% series W noncumulative preferreds (NYSE: JPMPE) traded at $25.599 on Friday after Thursday’s level of $25.61.

J.P. Morgan Securities LLC is running the books on the new deal.

In other trading among preferreds, Merrill Lynch Capital Trust I’s 6.45% trust preferred securities were seen moving down 4 cents to $25.53 on just 30,036 shares traded.

And Royal Bank of Scotland’s 7.25% noncumulative dollar preference shares, series T, were seen rising 3 cents to $25.50 on 21,504 shares traded.

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