Morning Commentary: Preferreds look to rebound from Thursday lows; National General ticks up

By Stephanie N. Rotondo

Phoenix, March 27 – Preferred stocks were attempting to rally from Thursday’s lows in early Friday trading.

The Wells Fargo Hybrid and Preferred Securities index was up 8 basis points at mid-morning. The index had closed down 10 bps on Thursday.

Despite the show of strength, the new issue market continued to be quiet, and a trader said there was “no talk of new deals for next week.”

Among recent deals that have not yet listed, National General Holdings Corp.’s new 7.5% series B noncumulative preferreds – a $150 million deal that came Tuesday – were quoted at $24.87 bid, $24.97 offered by one trader.

Another source placed the issue at $24.94, up 10 cents from the previous day.

Hancock Holding Co.’s $150 million of 5.95% $25-par subordinated notes due 2045 were meantime seen “hovering right around the $24.50 area,” according to a trader.

That issue came March 2 via Morgan Stanley & Co. LLC. But unlike the National General deal, which was assigned a temporary symbol – “NTGKP” – on Wednesday, Hancock has not yet received a reporting symbol.

“I can’t believe we’re not hearing it going to list,” the trader said. “There’s no temporary symbol. Maybe next week.”

© 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.