Morning Commentary: Preferred stocks firm as week ends; primary stays quiet; Wells busy, better

By Stephanie N. Rotondo

Seattle, June 17 – The preferred stock market was looking to finish out the week on a high note on Friday.

The Wells Fargo Hybrid and Preferred Securities Index was up 10 basis points in early trading. On Thursday, the index was off 25 bps, erasing nearly all of the 29 bps gained on Wednesday.

But while the space had a firm tone, a trader noted that activity was muted.

“It’s very quiet,” he said. “I think people are probably going to be leaving early.”

The trader also noted that the primary space was radio silent.

“There is no talk of new deals,” he said. “There was a [real estate investment trust] deal that was supposed to come but it got shelved.

“So maybe we will see that next week,” he speculated.

As for the day’s dealings, Wells Fargo & Co.’s $1 billion of 5.5% series X class A noncumulative perpetual preferreds (NYSE: WFCPX) continued to be actively traded.

The preferreds were up a penny at mid-morning, trading at $25.21.

The issue priced on June 8 and listed on Thursday.

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