Morning Commentary: Preferreds lower to start session; REIT deal delayed; Wells Fargo lists

By Stephanie N. Rotondo

Seattle, June 16 – The preferred stock market was again turning weaker on Thursday, after rising in midweek trading.

The Wells Fargo Hybrid and Preferred Securities Index was down 21 basis points at mid-morning. The index had improved 29 bps on Wednesday.

The softer tone of the market was putting the brakes on the new issue stream.

“There was supposed to be a [real estate investment trust] deal today, but it got pushed,” a trader said.

Wells Fargo & Co.’s $1 billion of 5.5% series X class A noncumulative preferreds – an issue priced June 8 – began trading on the New York Stock Exchange on Thursday.

The ticker is “WFCPX.”

A trader pegged the issue in a $25.19 to $25.20 context.

Meanwhile, Seaspan Corp. said the $15 million greenshoe on its $100 million offering of 8.2% series G cumulative redeemable preferreds has been fully exercised, lifting total issuance to $115 million.

The issue came to market no June 9 and is currently trading under the temporary ticker, “SSPNF.”

A trader pegged the preferreds at $24.80. Another market source saw the issue at $24.86, up 2 cents from the previous close and up 6 cents from the open.

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