Morning Commentary: Preferreds rebounding going into month-end; investors keep eyes on Greece

By Stephanie N. Rotondo

Phoenix, June 30 – Preferred stocks were edging upward going into month-end, as investors hoped for a last minute debt deal in Greece.

The Wells Fargo Hybrid and Preferred Securities index was up 12 basis points at mid-morning.

Greece has been given the chance to take a deal laid out by the European Commission that would free up enough cash for it to pay off €1.6 billion owed to the International Monetary Fund. The European Commission is claiming that it is the same as a deal offered on Friday, though Greek officials are claiming that it differs.

With Puerto Rico also about to default, the markets were hit pretty hard on Monday. However, the broader space was recovering Tuesday along with preferreds.

Still, liquidity remained thin, with one trader opining that the Greek and Puerto Rican debt issues – combined with a short holiday week – would keep volume constrained.

“Once everybody marks their positions today, unless anything major happens, it should be quiet all week,” he said.

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