Morning Commentary: Preferred stock trading muted as broad markets sell off; JPMorgan in focus

By Stephanie N. Rotondo

Phoenix, Feb. 11 – As Treasuries and common equities were trading off, so was the preferred stock market, according to a trader on Wednesday.

“It’s pretty quiet,” he said. “The secondary is a bit soft with the bond market being off and equity market off.”

The Wells Fargo Hybrid and Preferred Securities index was flat at mid-morning.

Though early trading was muted, investors continued to show interest in JPMorgan Chase & Co.’s $1.38 billion issue of 6.125% series Y noncumulative preferreds.

The deal priced for $1.2 billion on Feb. 5 via J.P. Morgan Securities LLC, coming upsized from $400 million and at the tight end of revised talk. A $180 million greenshoe was exercised on the deal on Monday.

The preferreds were trading at $24.95 early in the session, up 4 cents from the previous day’s close and 3 cents better than opening trades.

Nearly half a million shares had changed hands by mid-morning.

The shares are trading under the temporary symbol “JPQMP.”

A trader noted that there was “no talk of a [new] deal today.”

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