| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers Review > Headlines for 2015 > News item |
Morning Commentary: Preferreds firm following jobs report; Prospect Capital, Eagle Point muted
By Stephanie N. Rotondo
Seattle, Dec. 4 – Preferred stocks were inching up early Friday, following the broader markets higher on the back of a new jobs report.
The Wells Fargo Hybrid and Preferred Securities index was up 8 basis points at mid-morning. The common stock market was up over 1%.
The latest jobs report from the federal government showed the addition of 211,000 jobs, a figure that beat expectations. Hourly wages were also improving, as unemployment stayed low.
The new data seemed to insure that the Federal Reserve will move to increase interest rates when it meets later this month.
Meanwhile, “oil is tanking” and “the dollar is getting soft,” a trader said. Domestic crude oil prices were coming in after OPEC said it would maintain current production levels, despite a global oversupply of the product.
“There are rumors that the Saudis are selling oil at $30 a barrel to China,” a trader noted.
West Texas Intermediate crude was off almost 2.5% in early trading.
As for dealings in the preferred stock space, a trader said Prospect Capital Corp.’s $150 million of 6.25% $25-par notes due 2024 were offered at $24.65.
He added that the issue – which priced Thursday – had not yet freed to trade.
UBS Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC and RBC Capital Markets ran the books.
From earlier in the week, Eagle Point Credit Co. Inc.’s $25 million of 7% $25-par unsecured notes due 2020 – a deal from Tuesday – were pegged at $24 bid.
A trader remarked that he had seen few markets for the deal, though the new issue freed up “yesterday or maybe this morning.”
Incapital LLC was the bookrunner.
© 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.