Morning Commentary: Preferreds soft as week starts amid commodity rout; calendar looks quiet

By Stephanie N. Rotondo

Phoenix, July 20 – Preferred stocks were slipping in early Monday trading, as a commodity crush – particularly in oil and gold – was dragging the broader markets downward.

For its part, West Texas Intermediate crude was off over 1% early in the session.

A trader said the market was only “slightly moved,” seeing “more red than green.”

The Wells Fargo Hybrid and Preferred Securities index was down 5 basis points at mid-morning.

Looking to the new issue calendar, the trader said he had not yet heard of any deals slated to come to market. He added that he thought “for the next four to five weeks, it’s going to be pretty slow.”

In the secondary space, JPMorgan Chase & Co.’s 6.1% series AA noncumulative preferreds (NYSE: JPMPG) were on the active side. The preferreds were following the early trend of the day, falling over a penny to $25.1499.

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