Morning Commentary: Citi’s new $1,000-pars trade around par; Global Indemnity not yet free to trade

By Stephanie N. Rotondo

Phoenix, Aug. 6 – Preferred stocks were modestly higher in early Thursday trading.

The Wells Fargo Hybrid and Preferred Securities index was up 3 basis points at mid-morning.

In recent deals, Citigroup Inc.’s $1.25 billion of 5.95% $1,000-par series Q fixed-to-floating rate noncumulative preferreds – a deal priced Wednesday – was seen holding “right around par,” a trader said.

He quoted the issue at 99.75 bid, par offered.

The trader noted that the new issue “freed almost immediately” after pricing.

Among new $25-par issues, Global Indemnity plc’s $100 million of 7.75% subordinated notes due 2045 – another deal from Wednesday – had not yet freed to trade by mid-morning, according to a trader.

The notes were pegged at $24.57 bid, $24.60 offered.

Meanwhile, Qwest Corp.’s 7% $25-par notes due 2052 (NYSE: CTU) were weakening in early trades, as the market reacted to parent company CenturyLink Inc.’s earnings announcement.

The notes were off 6 cents at $26.25.

The earnings came in below Wall Street expectations, and the company also lowered its outlook.

© 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.