Morning Commentary: Allstate above par; U.S. Bancorp lower; AT&T $25-par notes decline

By James McCandless

San Antonio, Aug. 2 – Near the end of the week in the preferred space, the Wells Fargo Hybrid & Preferred Securities Financial index was down 0.02%.

Taking up most of early volume, Allstate Corp.’s new $1.15 billion 5.1% series H fixed-rate non-cumulative perpetual preferred stock was shooting past par.

The preferreds, trading under the temporary symbol “ALLZL,” were seen trading at $25.23 on volume of about 5.7 million shares.

The deal priced on Thursday.

Elsewhere, in the finance space, U.S. Bancorp’s series B floating-rate non-cumulative perpetual preferreds started the session moving lower.

The preferreds (NYSE: USBPrH) were down 6 cents to $20.74 with about 207,000 shares trading.

Sector peer JPMorgan Chase & Co.’s 6.3% series W non-cumulative preferred stock was headed in the opposite direction.

The preferreds (NYSE: JPMPrE) were adding 2 cents to $25.15 on volume of about 22,000 shares.

In telecom, AT&T, Inc.’s 5.35% global notes due 2066 started the day on a negative trend.

The notes (NYSE: TBB) were losing 15 cents to $26.60 with about 35,000 notes trading.

Meanwhile, in oil and gas, Energy Transfer Operating, LP’s 7.6% series E fixed-to-floating rate cumulative redeemable perpetual preferred units were losing slightly.

The preferreds (NYSE: ETPPrE) were off by 1 cent to $24.78 on volume of about 23,000 shares.

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