Preferreds rebound from Thursday lows, but liquidity wanes; National General shares rise

By Stephanie N. Rotondo

Phoenix, March 27 – Preferred stocks rallied from Thursday’s lows in Friday trading.

The Wells Fargo Hybrid and Preferred Securities index ended the day up 14 basis points. The index had closed down 10 bps on Thursday.

Though the market ended with a firmer tone, one market source noted that the gains were on “really, really light volume. It was probably the least amount of volume all week.

“Yes, prices were up, but it’s not what you would call a solid rebound,” he said.

The new issue market continued to be quiet, and a trader said there was “no talk of new deals for next week.”

Among recent deals that have not yet listed, National General Holdings Corp.’s new 7.5% series B noncumulative preferreds – a $150 million deal that came Tuesday – were quoted at $24.87 bid, $24.97 offered by one trader.

Another source saw the issue ending at $24.92, 8 cents higher on the day.

The issue was the most actively traded security among paying issues for the day, with nearly 650,000 shares being exchanged.

Hancock Holding Co.’s $150 million of 5.95% $25-par subordinated notes due 2045 were meantime seen “hovering right around the $24.50 area,” according to a trader.

That issue came March 2 via Morgan Stanley & Co. LLC. But unlike the National General deal, which was assigned a temporary symbol – “NTGKP” – on Wednesday, Hancock has not yet received a reporting symbol.

“I can’t believe we’re not hearing it is going to list,” the trader said. “There’s no temporary symbol. Maybe next week.”

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