Market gains as GDP exceeds forecasts; Digital Realty to list; RBS, Citi, JPMorgan firm

By Stephanie N. Rotondo

Phoenix, Aug. 27 – Preferred stocks were firming up again early Thursday, following the equity markets upward after the Commerce Department reported a 3.7% GDP gain in the second quarter.

The GDP growth exceeded estimates of 2.3%. As the markets improved on the news, so did crude oil prices, which shot up to more than $40 a barrel in early trading.

“Things are up slightly today,” a trader said. “Everyone has clamed down.”

The trader also noted news that China was selling some of its U.S. Treasury holdings in order to raise dollars to support the yuan.

The Wells Fargo Hybrid and Preferred Securities index ended up 39 basis points. The index was up 22 bps at mid-morning.

A market source reported that Digital Realty Trust Inc.’s $250 million of 6.35% series I cumulative redeemable perpetual preferred stock – a deal from Aug. 13 – were slated to list on the New York Stock Exchange on Friday.

The ticker symbol will be “DLRPI.”

The preferreds were quoted at $24.70 bid, $24.75 offered. The preferreds eventually ended at $24.70, up 14 cents on the day.

Meanwhile, Global Indemnity plc’s $100 million of 7.75% $25-par subordinated notes due 2045 could be admitted to the Nasdaq Global Select Market on Friday, according to the source.

The symbol on that issue will be “GBLIZ.” The notes priced Aug. 5.

RBS, Citi, JPMorgan busy

Among already listed issues, Royal Bank of Scotland Group plc, Citigroup Inc. and JPMorgan Chase & Co. were active in an otherwise subdued day.

RBS’ 6.08% noncumulative guaranteed trust preferred securities (NYSE: RBSPG) closed up 14 cents at $24.97, as its 5.9% noncumulative guaranteed trust preferred securities (NYSE: RBSPE) held steady at $24.64.

In Citigroup paper, the 5.8% series C noncumulative preferreds (NYSE CPC) fell 2 cents to $24.75, but its 7.875% fixed-to-floating rate trust preferred securities (NYSE: CPN) put on 3 cents, ending at $25.54.

JPMorgan’s 6.15% series BB noncumulative preferreds (NYSE: JPMPH) – a $1.1 billion issue that priced July 22 – meantime finished up 15 cents at $24.94. The 6.1% series AA noncumulative preferreds (NYSE: JPMPG) closed up 12 cents at $24.85.

That issue came May 29, with $1.425 billion shares being sold, including the over-allotment option.

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