Morning Commentary: Preferreds tick up, but liquidity sparse ahead of Fed’s stress test results

By Stephanie N. Rotondo

Phoenix, March 5 – The preferred stock market was firm but quiet early Thursday as investors prepared for the Federal Reserve’s stress test results.

The results are expected to be released at 4:30 p.m. ET, according to a market source.

“Although, a bad snow storm has started hitting New York City and the Northeast... so maybe it gets delayed?” the source speculated.

Another trader opined that the weather in New York was keeping people away from their desks, thus the limited trading activity.

The Wells Fargo Hybrid and Preferred Securities index was up 7 basis points at mid-morning.

Though the secondary was trending positively, Hancock Holding Co.’s $150 million of 5.95% $25-par notes due 2045 was not, a trader reported.

The trader saw the new deal – which came Monday and freed to trade Tuesday – at $24.55 bid, $24.65 offered.

“The manager didn’t really come in and support it,” he said.

Morgan Stanley & Co. LLC was the bookrunner.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.