Morning Commentary: Hartford offering eyed; JPMorgan’s preferreds mixed; Enstar lower

By James McCandless

San Antonio, Oct. 30 – The preferred market was slow to start on Tuesday as the Wells Fargo Hybrid & Preferred Securities Financial index inched higher by 0.2%.

The Hartford Financial Services Group Inc. announced plans to price $200 million of $25-par series G non-cumulative preferred stock with a dividend between 6% and 6.125%.

Wells Fargo Securities, LLC, BofA Merrill Lynch and Morgan Stanley & Co. LLC are the joint bookrunners.

In the secondary market, JPMorgan Chase & Co.’s 6.125% series Y non-cumulative preferred stock led early trading.

The preferreds (NYSE: JPMPrF) were down 5 cents to $25.62 on volume of about 40,000 shares.

The company’s more recent 5.75% series DD non-cumulative preferreds were relatively active but flat.

The preferreds (NYSE: JPMPrD) were level at $25.09 on volume of about 35,000 shares.

Elsewhere in the financial space, Bank of America Corp.’s 6.5% series Y non-cumulative preferreds (NYSE: BACPrY) were down 3 cents to $25.67 with about 23,000 shares trading.

Citigroup Capital XIII’s 7.875% fixed-to-floating rate preferred securities traded up at the start of the session.

The preferreds (NYSE: CPrN) added 3 cents to $26.52 on volume of about 21,000 shares.

In the insurance sector, Enstar Group Ltd.’s 7% series D non-cumulative fixed-to-floating rate preferreds were trending negative.

The preferreds (Nasdaq: ESGRP) were down 4 cents to $25.70 with about 25,000 shares trading.

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