Morning Commentary: Teekay joins calendar; City Office holds near par; Deutsche Bank rebounds

By Stephanie N. Rotondo

Seattle, Sept. 28 – Preferred stocks remained on firm ground on Wednesday, helping the primary space continue to push out new deals.

The Wells Fargo Hybrid and Preferred Securities index was up 9 basis points at mid-morning.

Teekay LNG Partners LP announced plans to sell series A cumulative redeemable perpetual preferred units early in the session.

Price talk was 9%, according to a market source.

Morgan Stanley & Co. LLC, UBS Securities LLC and Stifel Nicolaus & Co. Inc. are running the books.

Meanwhile, City Office REIT Inc.’s $100 million of 6.625% series A cumulative redeemable preferreds – a deal priced Tuesday – were pegged in a $24.96 to $25.02 range at mid-morning.

A trader said the paper had not yet freed to trade, though it had been assigned a temporary trading symbol, “CYORP.”

As for the secondary market, investors continued to focus on Deutsche Bank AG’s trust preferreds. But after spending much of the last few weeks in decline, the securities had “a little bit of a bounce” in early trading, according to a trader.

“But not much of one,” he added.

The 7.6% trust preferred securities (NYSE: DTK) were up 29 cents, or 1.24%, at $23.44, while the 8.05% TruPS (NYSE: DKT) were up 24 cents, or 1.01%, at $24.04.

The gains came as a slew of headlines indicated that the company might not need to raise more capital or depend on state aid as it attempts to deal with legal battles tied to the subprime mortgage crisis.

© 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.