Morning Commentary: Energy Transfer, MetLife preferreds on tap; AXA, AT&T weaker

By James McCandless

San Antonio, Jan. 7 – The preferred market opened on a negative trend as the Wells Fargo Hybrid & Preferred Securities Financial index began down by 0.15%.

In the primary market, Energy Transfer Operating, LP announced plans to price an offering of $1,000-par series F and series G fixed-rate reset cumulative redeemable perpetual preferred units.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., MUFG, Natixis Securities Americas LLC and TD Securities (USA) LLC are the joint bookrunners.

Both of the preferreds are redeemable on the first call date and every five years thereafter at par. Prior to that, the preferreds are redeemable 120 days after a ratings event at 102.

Also, insurance provider MetLife, Inc. plans to price an offering of $25-par series F non-cumulative preferred stock.

Wells Fargo Securities, LLC, BofA Securities, Inc., Morgan Stanley & Co. LLC, UBS Securities LLC and J.P. Morgan Securities LLC are the joint bookrunners.

The preferreds are redeemable on or after March 15, 2025. Prior to that, the preferreds are redeemable within 90 days after a regulatory capital event at par or rating agency event at $25.50.

The company’s more established 5.625% series E non-cumulative preferred stock was diving as secondary trading started.

The preferreds (NYSE: METPrE) were down 19 cents to $27.41 on volume of about 29,000 shares.

In other secondary activity, AXA Equitable Holdings, Inc.’s 5.25% series A non-cumulative preferred stock was also seen under pressure early.

The preferreds (NYSE: EQHPrA) were off 1 cent to $26.00 with about 231,000 shares trading.

Elsewhere in the finance space, Capital One Financial Corp.’s 5% series I fixed-rate non-cumulative perpetual preferred stock followed the morning trend.

The preferreds (NYSE: COFPrI) were declining by 4 cents to $25.15 on volume of about 55,000 shares.

Sector peer Wells Fargo & Co.’s 5.625% series Y non-cumulative perpetual class A preferreds were sinking.

The preferreds (NYSE: WFCPrY) were shedding 20 cents to $26.64 with about 46,000 shares trading.

Meanwhile, telecom name AT&T Inc.’s 5% series A perpetual preferred stock saw weakness on Tuesday morning.

The preferreds (NYSE: TPrA) were falling 3 cents to $26.12 on volume of about 55,000 shares.

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