Morning Commentary: Preferreds steady as long weekend approaches; Entergy New Orleans to list

By Stephanie N. Rotondo

Seattle, March 23 – The preferred stock market was holding its ground in early midweek trading.

“Oil is down a point ... Treasuries are up a little bit,” a trader noted. “But there’s not much happening.”

The Wells Fargo Hybrid and Preferred Securities index was up 1 basis points at mid-morning.

With the week coming to an end on Thursday, the trader further opined that activity would remain thin going into the long holiday weekend.

“But we’re hearing there’s a big calendar for next week,” he added.

Entergy New Orleans Inc.’s $110 million of 5.5% $25-par first mortgage bonds due April 1, 2066 are expected to begin trading on the NYSE on Thursday, a source reported.

The ticker will be “ENO,” the source said.

The deal came March 15.

A trader said the notes traded as high as $26.05 in early Wednesday trading.

Legg Mason Inc.’s $250 million of 6.375% $25-par junior subordinated notes due March 15, 2056 might also be hitting the NYSE on Thursday, a source speculated.

No markets were seen in that issue, which priced March 7.

As for other recently priced deals that have yet to list, Huntington Bancshares Inc.’s $350 million of 6.25% series D noncumulative perpetual preferreds – a deal priced March 14 – were quoted at $25.35 bid, $25.40 offered.

And, KKR & Co. LP’s 6.75% series A noncumulative perpetual preferred units were pegged around par.

The units came March 10.

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