Preferreds lower; Global Indemnity’s $25-par notes free to trade; New York Community to list

By Stephanie N. Rotondo

Seattle, March 20 – The preferred stock market began the week with a softer tone, according to market indicators.

The Wells Fargo Hybrid and Preferred Securities Index waned 4 basis points by the end of the day. The index was up 2 bps at mid-morning.

The U.S. iShares Preferred Stock ETF was down 8 bps.

Also, a trader remarked that there was “nothing going on” in terms of volume.

The trader did note that Global Indemnity Ltd.’s $120 million of 7.875% $25-par subordinated notes due 2047 – a deal priced Thursday – had freed from the syndicate early Monday.

He quoted the issue at $24.57 bid, $24.60 offered.

The deal was increased from $75 million and came to market at the tight end of talk for a yield of 7.875% to 8%.

Morgan Stanley & Co. LLC, UBS Securities LLC and RBC Capital Markets were the joint bookrunners.

Meanwhile, a market source reported that New York Community Bancorp Inc.’s $515 million of 6.375% series A fixed-to-floating rate noncumulative perpetual preferreds are slated to hit the New York Stock Exchange on Wednesday.

The new ticker will be “NYCBPrA.” The issue is currently trading under a temporary ticker, “NYBCP.”

The deal came March 10.

The paper closed at $26.10, down 2 cents.

In early Monday trading, a trader saw the issue at $25.95 bid.

Goldman, Sachs & Co., Credit Suisse Securities LLC, BofA Merrill Lynch, Citigroup Global Markets Inc. and Sandler O’Neill + Partners LP were the bookrunners.

As for the upcoming calendar, it remained empty.

“It seems like it is not a bad time to start bringing deals, now that the bond market has a stabilized,” a trader said. While the trader had not yet heard of any new issues planned for the week, he added that “it wouldn’t surprise me” if the calendar started to build up again.

As for more established issues, Royal Bank of Scotland Group plc’s 6.6% series S noncumulative dollar preference shares (NYSE: RBSPrS) were relatively active, considering the day’s limited liquidity. Like the broader market, the issue traded off 3 cents to $25.32.

Chimera Investment Corp.’s 8% series B fixed-to-floating rate cumulative redeemable preferreds (NYSE: CIMPrB) were also weaker, slipping 2 cents to $25.01.

Ally Financial Inc.’s 8.125% series 2 fixed-to-floating rate trust preferred securities (NYSE: ALLYPrA), however, bucked the day’s downward trend, adding a penny to close at $25.53.

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