Morning Commentary: CMS Energy to tap $25-par market; Hartford improves; JPMorgan lower

By James McCandless

San Antonio, Feb. 6 – The preferred space started Wednesday lower as the Wells Fargo Hybrid & Preferred Securities Financial index was down 0.04%.

CMS Energy Corp. said it plans to price a $150 million offering of $25-par junior subordinated notes with a coupon in the 5.875% area.

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

Fifth Third Securities, Inc. is the co-manager.

The notes are redeemable on or after March 1, 2024. Prior to that, they are redeemable upon changes to tax laws, regulations or interpretations or a ratings agency event.

In the secondary market, Hartford Financial Services Group, Inc.’s 6% series G non-cumulative preferreds were higher at the open.

The preferreds (NYSE: HIGPrG) were up 17 cents to $26.47 on volume of about 68,000 shares.

Late Tuesday, the company reported a 78 cents per share profit for the fourth quarter, beating analyst predictions of a 65 cents per share profit.

Meanwhile, in finance, JPMorgan Chase & Co.’s recent 6% series EE non-cumulative preferred stock and its 5.75% series DD non-cumulative preferred stock were both moving lower.

The series EE preferreds (NYSE: JPMPrC) were off by 2 cents to $25.76 with about 49,000 shares trading.

The series DD preferreds (NYSE: JPMPrD) were off by 1 cent to $25.00 with about 46,000 shares trading.

Elsewhere in finance, Goldman Sachs Group, Inc.’s series D floating-rate non-cumulative preferreds joined the negative trend.

The preferreds (NYSE: GSPrD) were down 18 cents to $18.41 on volume of about 47,000 shares.

U.S. Bancorp’s series B non-cumulative perpetual preferred stock started the day declining.

The preferreds (NYSE: USBPrH) moved lower by 10 cents to $19.30 with about 21,000 shares trading.

Shipping name GasLog Partners LP’s 8.625% series A and 8.2% series B fixed-to-floating rate cumulative redeemable perpetual preference units were both weaker.

The 8.625% preferreds (NYSE: GLOPPrA) declined 12 cents to $23.25 on volume of about 37,000 shares.

The 8.2% preferreds (NYSE: GLOPPrB) declined 17 cents to $22.18 on volume of about 34,000 shares.

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