Morning Commentary: Preferreds edge higher, shaking off weak jobs data; Banc of California up

By Stephanie N. Rotondo

Phoenix, April 6 – Preferred stocks were slightly higher early Monday, even after a weak jobs report that came out Friday.

Given that the markets closed early for the Good Friday holiday, investors might have come in Monday a little spooked.

“I thought we’d see a continued sell-off in Treasuries because of the jobs number last week,” one trader remarked.

In early trades, the Wells Fargo Hybrid and Preferred Securities index was up 2 basis points.

The latest jobs data showed 126,000 nonfarm jobs being added in March, which was about 120,000 less than expected. The results have caused some to speculate that any plans the Federal Reserve had to raise interest rates could be stymied.

In the preferred primary, there was no fresh talk of new deals, a trader reported.

In the secondary, Banc of California Inc.’s $100 million of 7.375% series D noncumulative preferreds – a deal from Tuesday’s business – were seen moving up to a $25.10 to $25.22 context.

The deal came upsized and at the tight end of talk. On Thursday, the new issue was assigned a temporary reporting symbol of “BLBLP.”

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